Question: Given the LP model and partial of the Excel Solver Sensitivity Report below: Let LS = units of LaserStop to be produced SB = units

Given the LP model and partial of the Excel Solver Sensitivity Report below:

Let LS = units of LaserStop to be produced SB = units of SpeedBuster to be produced
Maximize	124LS + 136SB
Subject to
Component A	18LS + 12SB 4,000
Component B	6LS + 8SB 3,500
	LS, SB 0

Microsoft Excel 16.0 Sensitivity Report
Constraints
		Final	Shadow	Constraint	Allowable	Allowable
Cell	Name	Value	Price	R.H. Side	Increase	Decrease
$I$9	Component A	4000	11.33	4000	1250	4000
$I$10	Component B	2667	0	3500	1E+30	833

(a) Management is considering buying additional 500 units of component A at a cost of $12 per unit. Is this a good idea? Why or why not?

(b) If additional 1,000 units of component A are available, can you predict how the total profit will be affected? Explain.

(c) If a supply delay results in a reduction of 1,000 units of component B (i.e., 2,500 units are available instead of 3,500), can you predict how the total profit will be affected? Explain.

(d) If the company could buy one more unit of either component A or B, which one would you recommend and why?

Given the LP model and partial of the Excel Solver Sensitivity Report below:

Let LS = units of LaserStop to be produced SB = units of SpeedBuster to be produced
Maximize	124LS + 136SB
Subject to
Component A	18LS + 12SB 4,000
Component B	6LS + 8SB 3,500
	LS, SB 0

Microsoft Excel 16.0 Sensitivity Report
Constraints
		Final	Shadow	Constraint	Allowable	Allowable
Cell	Name	Value	Price	R.H. Side	Increase	Decrease
$I$9	Component A	4000	11.33	4000	1250	4000
$I$10	Component B	2667	0	3500	1E+30	833

(a) Management is considering buying additional 500 units of component A at a cost of $12 per unit. Is this a good idea? Why or why not?

(b) If additional 1,000 units of component A are available, can you predict how the total profit will be affected? Explain.

(c) If a supply delay results in a reduction of 1,000 units of component B (i.e., 2,500 units are available instead of 3,500), can you predict how the total profit will be affected? Explain.

(d) If the company could buy one more unit of either component A or B, which one would you recommend and why?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Valencia Products makes automobile radar detectors and assembles two models: LaserStop (LS) and SpeedBuster (SB). Both models use electronic components A and B. Each unit of LS has a profit of $124...

Partial of the Excel Solver Sensitivity Report for the LP model in Problem (3) is provided below. Microsoft Excel 16.0 Sensitivity Report Variable Cells Final Reduced Objective Allowable Allowable...

Let x1,x2, and x3 represent number of units of product A,B, and C and the constraints represent the availability of materials 1,2 , and 3 . Given this LP model Maximize Z=$100x1+$602+$5032Profit...

Let x1,x2, and x3 represent number of units of product A,B, and C and the constraints represent the availability of materials 1,2 , and 3 . Given this LP model Maximize Z=$100x1+$60x2+$50x3 (Profit)...

Please answer a, b, c, d Let x1,x2, and x3 represent number of units of product A,B, and C and the constraints represent the availability of materials 1,2 , and 3. Given this LP model Maximize...

Let x 1 , x 2 , and x 3 represent number of units of product A, B, and C and the constraints represent the availability of materials 1, 2, and 3. Given this LP model Maximize Z = $100x 1 + $60x 2 +...

The NXA company produces high-quality glass products, including windows and glass doors. It has three plants. Aluminium frames and hardware are made in Plant 1, wood frames are made in Plant 2, and...

Problem 1 : ( Page 4 5 0 Problem 1 ) Valencia Products makes automobile radar detectors and assembles two models: LaserStop and SpeedBuster. The firm can sell all it produces. Both models use the...

Here is the new homework question. Please review the General Homework instructions due to the instructor being so strict. Were there any podcasts or Homework document notes that you needed me to...

A candidate for mayor in a small town has allocated $40,000 for last-minute advertising in the days preceding the election. Two types of ads will be used: radio and television. Each radio ad costs...

Materials used by Best Bread Company in producing Division A's product are currently purchased from outside suppliers at a cost of $30 per unit. However, the same materials are available from...

The HR team at Nielsen conducts their hiring process in two stages. For applicants who are classified as Alpha, Beta, and Gamma in the first stage, the chances of getting hired full-time after the...

!?? A company incurred the following costs for a new delivery van: Purchase price $1 15,000 Sales tax $6,200 Delivery charge from seller's location $1,800 Shelving installed in the van for equipment...

Case Greenbuilders Pte Lid ("GPL") is a local construction company which specialises in providing bespoke Design and Build construction services for private residential homes that are designed to be...