Question: Using the following sensitivity report to answer questions. There is a factory utilizing three resources, Labor, Metal and Foam, to produce Product A, and Product

Using the following sensitivity report to answer

Using the following sensitivity report to answer questions. There is a factory utilizing three resources, Labor, Metal and Foam, to produce Product A, and Product B. This report comes from their profit maximization problem subject to three resource constraints. The current objective function is: Profit = 110 * Xa + 130 * Xb. Note that, Za , Xy are the number of product A and product B to produce respectively. Variable Cells Cell Name $B$11 Unit Profit of Product A $B$12 Unit Profit of Product B Final Reduced Objective Allowable Value Cost Coefficient Increase 0 -5.555555556 110 5.555555556 888.8888889 0 130 1E+30 Allowable Decrease 1E30 6.25 Constraints Cell Name $C$15 Labor(hours/unit) $D$15 Metal (cubic feet per unit) $E$15 Foam (cubic feet/unit) Final Value 7111.111111 8000 3555.555556 Shadow Price 0 14.44444444 0 Constraint R.H. Side 10000 8000 6000 Allowable Allowable Increase Decrease 1E+30 2888.888889 3250 8000 1E+30 2444.444444 1) If the manager wants to buy some additional metal and increase total available Metal by 3000 feet, what is the highest cost the manager can accept to buy the additional Metal? 28889 2) Suppose a lot of employees decide to not return to the job at the factory post-Covid, that is, the factory see a decrease of 3000 units of Labor hours post-Covid. How much would the optimal profit decrease? [Select] 3) All other parameters remains unchanged, at which of the following unit profit of product A, the factory might start to produce non-zero number of product A? [Select ] a. 107; b. 117; c. 119; d. 95 4) Which of the following constraint(s) is (are) binding? (Select ]

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!