24. Use Solver to create a Sensitivity Report for question 35 at the end of chapter...

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24. Use Solver to create a Sensitivity Report for question 35 at the end of chapter 3 and answer the following questions: a. Is the solution unique? b. If Sentry wants to increase their production capacity in order to meet more of the demand for their product, which plant should they use? Explain. c. If the cost of shipping from Phoenix to Tacoma increased to $1.98 per unit, would the solution change? Explain. d. How much extra should the company charge the distributor in Tacoma if this distributor insisted on receiving 8,500 units? e. Sentry is considering changing its policy of filling at least 80% of each distribution center's orders and would like to consider the impact on total cost of varying this percentage between 70% and 100% in 1% increments. Create a Spider Plot to illustrate this. What does this chart reveal and what are the managerial implications? 35. The Sentry Lock Corporation manufactures a popular commercial security lock at plants in Macon, Louisville, Detroit, and Phoenix. The per unit cost of production at each plant is $35.50, $37.50, $39.00, and $36.25, respectively, while the annual production capacity at each plant is 18,000, 15,000, 25,000, and 20,000, respectively. Sentry's locks are sold to retailers through wholesale distributors in seven cities across the United States. The unit cost of shipping from each plant to each distributor is summarized in the following table along with the forecasted demand from each distributor for the coming year. Plants Macon Louisville Detroit Phoenix Demand Tacoma San Diego $2.50 $2.75 $1.85 $1.90 $2.30 $2.25 $1.90 $0.90 8,500 14,500 Unit Shipping Cost to Distributor in Denver St. Louis Dallas $1.75 $1.50 $1.85 $1.60 13,500 $2.00 $1.60 $1.25 $1.75 12,600 $2.10 $1.00 $1.50 $2.00 18,000 Tampa $1.80 $1.90 $2.25 $2.50 15,000 Baltimore $1.65 $1.85 $2.00 $2.65 9,000 24. Use Solver to create a Sensitivity Report for question 35 at the end of chapter 3 and answer the following questions: a. Is the solution unique? b. If Sentry wants to increase their production capacity in order to meet more of the demand for their product, which plant should they use? Explain. c. If the cost of shipping from Phoenix to Tacoma increased to $1.98 per unit, would the solution change? Explain. d. How much extra should the company charge the distributor in Tacoma if this distributor insisted on receiving 8,500 units? e. Sentry is considering changing its policy of filling at least 80% of each distribution center's orders and would like to consider the impact on total cost of varying this percentage between 70% and 100% in 1% increments. Create a Spider Plot to illustrate this. What does this chart reveal and what are the managerial implications? 35. The Sentry Lock Corporation manufactures a popular commercial security lock at plants in Macon, Louisville, Detroit, and Phoenix. The per unit cost of production at each plant is $35.50, $37.50, $39.00, and $36.25, respectively, while the annual production capacity at each plant is 18,000, 15,000, 25,000, and 20,000, respectively. Sentry's locks are sold to retailers through wholesale distributors in seven cities across the United States. The unit cost of shipping from each plant to each distributor is summarized in the following table along with the forecasted demand from each distributor for the coming year. Plants Macon Louisville Detroit Phoenix Demand Tacoma San Diego $2.50 $2.75 $1.85 $1.90 $2.30 $2.25 $1.90 $0.90 8,500 14,500 Unit Shipping Cost to Distributor in Denver St. Louis Dallas $1.75 $1.50 $1.85 $1.60 13,500 $2.00 $1.60 $1.25 $1.75 12,600 $2.10 $1.00 $1.50 $2.00 18,000 Tampa $1.80 $1.90 $2.25 $2.50 15,000 Baltimore $1.65 $1.85 $2.00 $2.65 9,000

Answer rating: 100% (QA)

While solving Problem 35 click on the sensitivity option in the solver dialog box The sensitivity re... View the full answer