STEP BY STEP EXPLANATION NEEDED. SCREETSHOTS OR DETAILED EXPLANATION.

Question 3 - (13 points) Sab, Inc. is a small manufacturer of golf equipment and supplies whose management has decided to move into the market for medium- and high-priced golf bags. Par's distributor is enthusiastic about the new product line and has agreed to buy all golf bags Par produces over the next three months. After a thorough investigation of the steps involved in manufacturing a golf bag, management determined that each golf bag produced will require the following operations: 1. Cutting and dyeing the material 2. Sewing 3. Finishing (inserting umbrella holder, club separators, etc.) 4. Inspection and packaging The director of manufacturing analyzed each of the operations and concluded that if the company produces a medium-priced standard bags, each bag will require 7/10 hour in the cutting and dyeing department, % hour in the sewing department, 1 hour in the finishing department, and 1/10 hour in the inspection and packaging department. The more expensive deluxe model will require 1 hour for cutting and dyeing, 5/6 hour for sewing, 2/3 hour for finishing, and % hour for inspection and packaging. This production information is summarized in Table 3. Table 3: Production Requirements for Standard Bag and Deluxe Bag Production Time (hours) Standard Bag Deluxe Bag 710 Department Cutting and Dyeing Sewing Finishing Inspection and Packaging % % Vio Par's production is constrained by a limited number of hours available in each department. After studying departmental workload projections, the director of manufacturing estimates that 530 hours for cutting and dyeing, 610 hours for sewing, 718 hours for finishing, and 139 hours for inspection and packaging will be available to produce golf bags during the next three months. The accounting department analyzed the production data, assigned all relevant variable costs, and arrived at prices for both bags that will result in a profit contribution of $7 for every standard bag and $4 for every deluxe bag produced Develop a mathematical model of the Par, Inc. problem that can be used to determine the number of standard bags and the number of deluxe bags to produce in order to maximize total profit. // You should use "Solver" for this problem, and template model is under Question3.2.xls file. Please clearly construct your model with appropriate constraints and objective function. (i) Based on the solver report for this question, write total profit, the number of bags produced standard, and the number of bags produced deluxe. (5 points) // You should relate values as mentioned above and just write one sentence to explain what you achieve. Based on the sensitivity report explain the meaning of shadow prices of constraints and reduced costs of variables. (4 points) // Hint: What are the meanings or effects of shadow prices and reduced costs? Use Solver Table to see what happens to the decision variables and the total profit when the available number of hours for inspection and packaging decreases in drop of 2 hours. Analyze Solver Table and Solver sensitivity report to find out how large must this hour decrease before the decision variables change? What happens when it continues to decrease beyond this point? Par, Inc. Parameters Operation Cutting and Dyeing Sewing Finishing Inspection and Packaging Profit Per Bag Production Time (Hours) Standard Deluxe 0,7 1 0,5 0,83333 1 0,66667 0,1 0,25 7 4,00 Time Available Hours 530 610 718 139 Model Standard Deluxe Bags Produced Total Profit Hours Used Operation Cutting and Dyeing Sewing Finishing Inspection and Packaging Hours Available 530 610 708 139