Problem 2a

How many units of each model is the manufacturing company going to make in-house versus purchase from their competitor?

Problem 2b

What is the total cost for fulfilling the demand?

Problem 2c

Suppose the cost to produce a Model 2 package in-house increases by $10. Would the optimal solution change? What would be the new optimal value, and what would be the new optimal solution?

Problem 2d

Suppose the cost to purchase a Model 2 package from the competitor increases by $10. Would the optimal solution change? What would be the new optimal value, and what would be the new optimal solution?

Problem 2e

Suppose the amount of Labor available decreases by 500 hours. Would the optimal solution change? What would be the new optimal value, and what would be the new optimal solution?

Problem 2f

Suppose the amount of Machine time available decreases by 500 hours. Would the optimal solution change? What would be the new optimal value, and what would be the new optimal solution?

A manufacturer of three different types of wood flooring is deciding its production schedule for the next month. There are three different types of flooring that they supply to customers: Model 1, Model 2, and Model 3. The flooring is sold in packages of 10 square feet each. The cost for the manufacturer to make the packages are $50,$83, and $130, respectively per model, and the company must fulfill a demand of 3,000, 2,000, and 900 packages, respectively, of Model 1, Model 2 , and Model 3. The manufacturing company has constraints which prohibit indefinite production. They have at most 10,000 hours of labor and at most 5,000 hours of machine time available to create the flooring, with each model requiring a difference amount of labor and machine time, respectively. This prohibits them from creating all of the demand in-house (i.e., by themselves). In order to fulfill any demand beyond what they can themselves manufacture, they can purchase packages of flooring from a competitor at a discounted rate, and then re-sell the product to their customers. The cost to purchase a package of the flooring is $61,$97, and $145, respectively, for Model 1 , Model 2, and Model 3. The manufacturing company has solved the optimization problem of minimizing the cost to fulfill demand, and generated the following sensitivity report: Decision Variables Cells Constraints Answer the following questions based solely on the sensitivity report above. If you cannot determine the answer from the sensitivity report, please indicate so and explain why. A manufacturer of three different types of wood flooring is deciding its production schedule for the next month. There are three different types of flooring that they supply to customers: Model 1, Model 2, and Model 3. The flooring is sold in packages of 10 square feet each. The cost for the manufacturer to make the packages are $50,$83, and $130, respectively per model, and the company must fulfill a demand of 3,000, 2,000, and 900 packages, respectively, of Model 1, Model 2 , and Model 3. The manufacturing company has constraints which prohibit indefinite production. They have at most 10,000 hours of labor and at most 5,000 hours of machine time available to create the flooring, with each model requiring a difference amount of labor and machine time, respectively. This prohibits them from creating all of the demand in-house (i.e., by themselves). In order to fulfill any demand beyond what they can themselves manufacture, they can purchase packages of flooring from a competitor at a discounted rate, and then re-sell the product to their customers. The cost to purchase a package of the flooring is $61,$97, and $145, respectively, for Model 1 , Model 2, and Model 3. The manufacturing company has solved the optimization problem of minimizing the cost to fulfill demand, and generated the following sensitivity report: Decision Variables Cells Constraints Answer the following questions based solely on the sensitivity report above. If you cannot determine the answer from the sensitivity report, please indicate so and explain why