Question: Using the Sensitivity Analysis Report below, if the company could obtain either additional Resource 1 or Resource 3, which one should they choose and how
Using the Sensitivity Analysis Report below, if the company could obtain either additional Resource 1 or Resource 3, which one should they choose and how much would the objective function change (assuming additional quantities cost the same as usual)?
| Adjustable Cells | |||||||||
| Final | Reduced | Objective | Allowable | Allowable | |||||
| Cell | Name | Value | Cost | Coefficient | Increase | Decrease | |||
| $B$12 | Solution Product 1 | 75 | 0 | 9 | 1 | 1 | |||
| $C$12 | Solution Product 2 | 0 | -1.5 | 9 | 1.5 | 1E+30 | |||
| $D$12 | Solution Product 3 | 75 | 0 | 6 | 3 | 0.6 | |||
| Constraints | |||||||||
| Final | Shadow | Constraint | Allowable | Allowable | |||||
| Cell | Name | Value | Price | R.H. Side | Increase | Decrease | |||
| $B$15 | Resource 1 LHS | 600 | 1.5 | 600 | 150 | 50 | |||
| $B$16 | Resource 2 LHS | 525 | 0 | 600 | 1E+30 | 75 | |||
| $B$17 | Resource 3 LHS | 375 | 0 | 480 | 1E+30 | 105 | |||
| $B$18 | Resource 4 LHS | 150 | 1.5 | 150 | 7.894736842 | 30 | |||
| a. | 7.89 units of Resource 3 for $11.84 increased profit | |
| b. | 150 units of Resource 1 for $225 increased profit | |
| c. | 7.89 units of Resource 1 for $11.84 increased profit | |
| d. | The shadow price for Resources 1 and 3 is $1.50 so either would benefit the company equally | |
| e. | 150 units of Resource 3 for $225 increased profit |
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