Question: The sensitivity report below belongs to a linear program model developed to determine the optimal product mix between six possible products, including tables and chairs

The sensitivity report below belongs to a linearThe sensitivity report below belongs to a linear

The sensitivity report below belongs to a linear program model developed to determine the optimal product mix between six possible products, including tables and chairs made of either oak, cherry, or pine, which are proposed to be made using the following resources: labour hours and three types of wood. Minimum production requirements exist for oak and cherry tables (three of each must be made) and each type of chair (at least ten chairs each of oak and cherry are required; 5 pine chairs must also be made). The objective function coefficients each refer to unit profit per item. Adjustable Cells Allowabl Allowabl Cell Name Final Value Reduced Objective Cost Coefficient 0 0 0 SBS6 Oak Tables SCS6 Oak Chains $DS6 Cherry Tables SE36 Cherry Chairs SP56 Pine Tables SCS6 Pine Chairs 3 52 3 86 42 33 75 35 90 60 45 20 Increase Decrease 0 1E+30 IE+30 0 0 1E130 1E430 0 0 0 13.25 0 0 0 Constraints Constrain Allowabl Allowabl Cell Name Final Value Shadow Price RH. Side Increase Decrease 1000 373 37 1000 10 2150 0 2150 319 1250 3800 0 3800 223 2240 8500 0 8500 1488 5040 3 0 3 2 SH59 Labour hours SHSI Oak, kg 0 SHS: Cherry, kg 1 SHS: Pine, kg 2 SHS1 Min Oak Tables 3 SHS: Min Cherry 4 Tables SHSI Min Pine Tables 5 SHS: Min Oak Chairs 6 SHSI Min Cherry 7 Chairs SHS: Min Pine 8 Chairs 3 0 3 1 11 42 42 0 0 1E430 52 0 10 42 1E430 86 0 10 76 15:30 33 0 5 28 1E+30 a. What would be the impact to the profit if the unit profit for pine tables was to increase by $15? b. What would be the impact to the profit if the company was required to make at least 20 pine chairs? C. Suppose one of the part-time employees (who works 25 hours per week) decided to quit his job. How would this affect the profit? d. What would be the impact on the profit if the company did not have a minimum requirement for oak chairs

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!