Interpreting sensitivity reports-optimum value

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Interpreting Sensitivity Reports

Adjustable Cells

Cell: $G$17

Name: Product X

Final Value: 120

Reduced Cost: 0

Objective Coefficient: 40

Allowable Increase: 13.33333333

Allowable Decrease: 0

Cell:$H$17

Name: Product Y

Final Value: 80

Reduced Cost: 0

Objective Coefficient: 40

Allowable Increase: 0

Allowable Decrease: 10

Constraints

Cell: $I$18

Name: Machining

Final Value: 6.2

Shadow Price: 0

Constraint RHS: 7

Allowable Increase: 1E+30

Allowable Decrease:.8

Cell: $I$19

Name: Labor

Final Value: 10

Shadow Price: 80

Constraints RHS: 10

Allowable Increase: 4.70588235

Allowable Decrease: 1

Cell: $I$20

Name: Painting

Final Value: 6

Shadow Price: 0

Constraint RHS:6

Allowable Increase: .666666667

Allowable Decrease: .4444444

A) If profit margin for X is increased by 10, what would be the change in optimum value? What if it is increased by 15?

B) If profit margin for Y is decreased to 39, what would he te change in optimum value?

C) If 3 hours of extra labor can be provided for a total cost of $200, should the conpanyt do it? Why or why not?

D) The machining availability has dropped from 7 to 6.5. What impact will Thai have on the optimal solution and the optimal value?

E) The painting availability has dropped from 6 to 5.5. What impact will this have o. the optimal solution and the optimal value?

Reference no: EM131442407

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