Question: 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

The problem in Question 1 is modified due the
The problem in Question 1 is modified due the
The problem in Question 1 is modified due the
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 Cell Name Value Cost Coefficient $C$7 A 0 -2.33 57 $D$7 B 50 0 89 $E$7 C 0 -28 150 Allowable Increase 2.33 1E+30 28 Allowable Decrease 1E+30 3.5 1E+30 Halle Constraints Final Cell Name Value $F$4 M1 150 $F$5 M2 100 $F$6 M3 100 Shadow Price 29.67 0 0 Constraint R.H. Side 150 270 1800 Allowable Allowable Increase Decrease 255 150 1E+30 170 1E+30 1700 Use the information in Table 1 above answer the following questions from a-f. Answers: (a) Write down values taken by the decision variables in the optimal solution. (b) Which Constraints are binding? (c) Which constraints show extra capacity? How much? (d) If the profit for Model C were increased to RO 59.34 per unit, would the optimal solution change? Explain showing brief calculations. {3} (e) Identify the range of feasibility for the right-hand-side value of the constraint M1. (2) (f) If the number of units of Material (M2) available for production increased by 100, will the shadow price value for that constraint change? Explain showing brief calculations. {3}

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