Question number 7

Using an Excel solver, solve the following LP problem.

=number of tables to be made

= number of chairs to be made

= number of TV stands to be made

Maximize Profit (Z) =

Subject to

Max wood

Max fiber

Min demand for TV-stand

Max demand for chairs

(Non-negativity constraint)

Note that fractional values for the variables are acceptable. Use two decimal places to provide answers to questions 4 through 8

1. Generate Input Sheet 5 marks

2. Answer report 7.5 marks

3. Sensitivity report 7.5 marks

Each of the following questions carries three marks 5*4=20 marks

4. What are the critical resources? Of all the resources, if given an option, which will you buy, how many units, and why?

5. The shadow price of fiber, __________ (provide fiber shadow price), is valid for an increase of up to _______units from the current value and a decrease of up to ________ units.

6. What is the new profit if the profit from the table is increased by $5 and the TV stand is increased by $2? Show all your steps and explanation

7. What is the new profit if you add 4 units wood and remove (reduce) 4 units of fiber?

8. We currently pay $ 25 per unit of fiber. A new supplier is ready to provide fiber for 27 per unit. What will be the new profit if we plan to buy an allowable increase?