Question: (i) What is the optimal solution to this problem? (ii) What is the corresponding value of the objective function? (iii) Why does the reduced cost

(i) What is the optimal solution to this problem?

(i) What is the optimal solution to this problem? (ii) What is the corresponding value of the objective function? (iii) Why does the reduced cost column contain zeros? (iv) If the Kpogas unit contribution margin on each table sold was GH 3,000 instead of GH 4,000 how would that affect the optimal solution? (v) If management could obtain additional resources, which one would be of most value to them and why? (vi) Which constraints are binding?

e e (b) The model was solved using solver and part of the results is provided in the Table below. Use it to answer the questions that follow Adjustable Cells Reduce Allowabl Allowabl Final d Objective e e Valu Coefficie Decreas Cell Name Cost nt Increase 2333.33 $B$3 chairs 4.5 0 5000 3000 3 $C$3 tables 7 0 4000 3500 1500 Constraints Shado Constrain Allowabl Allowabl Final t e Valu Decreas Cell Name e Price R.H. Side Increase e w e 10 $D$9 Test Hrs LHS 205 0 135 70 1.00E+3 0 1.00E+3 0 $D$10 Total units LHS 11.5 0 5 6.5 47.1428 6 $D$6 Dept. A LHS 150 150 150 $D$7 160 175 160 90 73.3333 3 1.00E+3 0 Dept. B LHS Mix constraint LHS 40 $D$8 -16.5 0 0 16.5

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!