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 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 (MI) (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 (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. Focus 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 0 -28 Allowable Increase 2.33 1E+30 28 Allowable Decrease 1E+30 3.5 1E+30 150 Italic Constraints Final Cell Name Value $F$4 M1 150 $F$5 M2 100 $F$6 M3 100 Shadow Price 29.67 0 Constraint R.H. Side 150 270 1800 Allowable Increase 255 1E+30 1E+30 Allowable Decrease 150 170 1700 0 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) (b) Which Constraints are binding? (2) (c) Which constraints show extra capacity? How much? (2)

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!