Question: Problem PM-92. A manager wants to determine how many units of each product to produce weekly to maximize profits. Production requirements for the products are:

Problem PM-92. A manager wants to determine how

Problem PM-92. A manager wants to determine how many units of each product to produce weekly to maximize profits. Production requirements for the products are: Product Material 1 Material 2 Labour A 3 kg 2 kg 4 hr B 1 4 2 5 none 3.5 Material 1 costs $7 per kilogram, material 2 costs $5 per kilogram, and labour costs $15 per hour. Product A sells for $101 a unit, product B sells for $67 a unit, and product C sells for $97.50 a unit. Each week there are 300 kilograms of material 1; 400 kilograms of material 2; and 200 hours of labour. There is a regular order of 10 units of product each week. The LP model for this problem is: Max 10A + 10B + 100 Subject to: 3A + B + 5C 10 (constraint 4) A, B, C 0 The model is entered into Excel and Solver is used to find the optimal solution. The Sensitivity Report is: Adjustable Cells Cell Name $B$4 Optimal Values: A $C$4 Optimal Values: B $D$4 Optimal Values: C Final Reduced Value Cost 0 -10 82.5 0 10 0 Objective Coefficient 10 10 10 Allowable Allowable Increase Decrease 10 1E+30 1E+30 4.285 7.5 1E+30 Constraints Cell Name $E$7 Constraint 1 $E$8 Constraint 2 $E$9 Constraint 3 $E$10 Constraint 4 Final Shadow Value Price 132.5 0 330 0 200 5 10 -7.5 Constraint Allowable Allowable R.H.S. Side Increase Decrease 300 1E+30 167,5 400 1E+30 70 200 35 165 10 47.142 10 or and Consider the LP problem in the figure. Suppose that the production manager has an additional 10 labour hours. What impact will this have on the current optimal objective function value? an increase of $50 an increase of $5 an increase of $35 a decrease of $165 none of these

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