Q1: Suppose Blue Ridge can order additional pumps from a third party for the production, what is maximum rate that Blue Ridge like to pay for each additional pump?

use ( sensitivity analysis-Solver)

Blue Ridge wanted to produce the Aqua-Spa and Hydro-Lux, but they only had 200 pumps. The company needed to decide how many of each

product to produce to maximize profit. Now suppose Blue Ridge can order additional pumps from a

third party for the production. You will need to determine how much to pay for the pumps and

additional labor. You will also need to consider how to incorporate a new product line.

                                                              Final                     Shadow                      Constraint             Allowable         Allowable
Name                                                 Value                     Price                             R.H. Side                  Increase              Decrease

1. 1 Pumps Req'd Used             200                     200                              200                                  7                                    26
2. Labor Req'd Used                    1566                    16.6666667               1566                             234                            126

3. Tubing Reg'd Used                         2712                        0                            2880                           1E+30                             168

Answer rating: 100% (QA)

Solution First we need to identify the active constraint in the given table An active constraint is ... View the full answer