Question 2 [14 Marks]

The problem in Question 1 is modified due the expansion plan of the company as follows.

A manufacturer produces three models of heating radiators: Model A, Model B, Model C. The profit per unit are RO 57, RO 89, and RO 150, respectively. The production requirements per unit are as follows.

Material Material Manufacturing

(M1) (M2) Time (hours)

Model A 2 3 6

Model B 1 2 3

Model C 3 3 7

The company has 100 units of Material (M1) available, 270 of Material (M2), 1800 hours of manufacturing time (M3) available. The problem is to decide how many units of Model A, Model B, and Model C should the company produce in order to maximise profit.

The above problem is solved by developing a spreadsheet model and using Solver. The computer solution Excel Sensitivity Report is produced as shown in Table 1 below.

Table 1: Microsoft Excel 16.0 Sensitivity Report

Variable Cells
			Final	Reduced	Objective	Allowable	Allowable
	Cell	Name	Value	Cost	Coefficient	Increase	Decrease
	$C$7	A	0	-2.33	57	2.33	1E+30
	$D$7	B	50	0	89	1E+30	3.5
	$E$7	C	0	-28	150	28	1E+30
Constraints
			Final	Shadow	Constraint	Allowable	Allowable
	Cell	Name	Value	Price	R.H. Side	Increase	Decrease
	$F$4	M1	150	29.67	150	255	150
	$F$5	M2	100	0	270	1E+30	170
	$F$6	M3	100	0	1800	1E+30	1700

Use the information in Table 1 above answer the following questions from a-f.

Answers:

1. Write down values taken by the decision variables in the optimal solution. {2}

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