Question: Your model in (b) was solved using Solver and the sensitivity report is given in Table 1 below. Variable Cells Final Reduced Objective Allowable Allowable

Your model in (b) was solved using Solver and the sensitivity report is given in Table 1 below.

Variable Cells

Final

Reduced

Objective

Allowable

Allowable

Cell

Name

Value

Cost

Coefficient

Increase

Decrease

$B$2

No. of days to operate One

4

0

6000

1000

6000

$C$2

No. of days to operate Two

0

1000

7000

1E+30

1000

Constraints

Final

Shadow

Constraint

Allowable

Allowable

Cell

Name

Value

Price

R.H. Side

Increase

Decrease

$D$7

High-grade LHS

24

0

12

12

1E+30

$D$8

Medium-grade LHS

8

3000

8

1E+30

4

$D$9

Low-grade LHS

16

0

5

11

1E+30

(c) What is the optimum number of days to operate each mill? ( 3 marks )

(d) What is the total cost to United for this solution? ( 2 marks )

(e) Why is the Reduced cost for mill One zero? ( 2 marks )

(f) Why are the shadow prices for High-grade and Low-grade zeros? ( 3 marks )

(g) What is the effect on the optimal solution if the operating cost for mill One

increases to GH6,500? ( 3 marks )

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