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. Model A Model B Model C Material (MI) 2 1 3 Material (M2) 3 2 3 Manufacturing Time (hours) 6 3 7 The company has 100 units of Material (MI) 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 Coefficient Decrease Sc$7 A -2.33 2.83 $D$7 B 1E+30 SESZ 1E+30 Name Value Cost Increase 0 50 57 89 1E+30 3.5 0 -28 0 150 28 Allowable Constraints Final Cell Name Value $F$4 M1 150 $F$5 M2 100 $F$6 M3 100 Decrease Shadow Price 29.67 0 Constraint R.H. Side 150 270 1800 Allowable Increase 255 150 170 1E+30 1E+30 0 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. {2} NE (b) Which Constraints are binding? {2} (c) Which constraints show extra capacity? How much? {2} (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} HRER

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!