MGMT 511 MBA Fall 2017 Dr. JP Arnaout CASE 3 - SENSITIVITY ANALYSIS Consider the following linear programming problem, where we are minimizing the costs obtained from producing X and Y battery types. MIN s.t. $200*X + $50*Y 6*X + 3*Y => 60 2*X+3*Y => 36 (1) (2) where, X and Y refer to the number of grade I and grade II battery types, respectively. Case Questions Prepare a report that answers the following questions: a) Solve and report the optimal solution and objective value. b) In case your solution recommend not to produce one of the battery types, advise on what should be changed so that particular battery type is produced again. c) Following the original model (part a), if the cost of X was decreased to $150 and the one for Y increased to $60, will the optimal solution change? What about the Cost? Explain. d) Following the original model (part a), if we can increase the RHS of Constraint (2) from 36 to 40 units for only $100, should we make the increase or not? Explain in detail w/o resolving your model. e) Following the original model (part a), assume that constraint (1) RHS can be increased from 60 to 70 units for a total price of $166.667, should we make the increase or not? Explain in detail w/o resolving your model. P.S. Both (Lingo or Excel) File and Word report should be submitted