Question: Olympic Bike is introducing two new lightweight bicycle frames, the Deluxe and the Professional, to be made from special aluminum and steel alloys. The anticipated
Olympic Bike is introducing two new lightweight bicycle frames, the Deluxe and the Professional, to be made from special aluminum and steel alloys. The anticipated unit profits are $10 for the Deluxe and $15 for the Professional. A supplier delivers 100 pounds of the aluminum alloy and 80 pounds of the steel alloy weekly. Using Sensitivity analysis, answer following questions: a) How many Deluxe and Professional frames should Olympic produce each week? b) Suppose the profit on deluxe frames is increased to $20. Is the above solution still optimal? What is the value of the objective function when this unit profit is increased to $20? c) If the unit profit on deluxe frames were $6 instead of $10, would the optimal solution change? Partial solution using MS Excel Software is given as under
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