Problem $1)25$ Points

Given:

Decision Variables:

A $=$ number of cases of A to manufacture

B $=$ number of cases of B to manufacture

Objective Function:

MIN $($COST$)$: $2\mathrm{.}50$A $+3\mathrm{.}10$B

Constraints:

C$1($Processing Time$)$: $2$A $+0\mathrm{.}5<=600$

C$2($Total Production$)$: $1$A $+1$B $>=350$

C$3($Demand for A$)$: $1$A $>=125$

C$4($Non$-$negativity$)$: A$,$ B $>=0$

After running your Solver model and generating a sensitivity report, you must answer the

questions listed below in your Excel spreadsheet.

Problem $1$ Part a$)$ Use the Sensitivity Report that you generated and refer to your original

answer. Assume that we will decrease the value of the coefficient of B to $$3\mathrm{.}00.$

Answer the questions below in your spreadsheet to the right of your data.

Amount of the Decrease equals what value? $(2$ points$)$

The Allowable Decrease equals what value? $(2$ points$)$

Is this change within the Allowable Decrease? $(2$ points$)$

What will the new objective function value equal? $(4$ points$)$ Note: You must calculate this

value off to the right in your spreadsheet using the SUMPRODUCT formula that we used

in all sensitivity analysis spreadsheets posted on Canvas.

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