Reference no: EM133563237

Case Study: Sanderson Manufacturing produces ornate, decorative wood frame doors and windows. Each item produced goes through three manufacturing processes: cutting, sanding, and finishing. Each door produced requires 1 hour in cutting, 30 minutes in sanding, and 30 minutes in finishing. Each window requires 30 minutes in cutting, 45 minutes in sanding, and 1 hour in finishing. In the coming week Sanderson has 40 hours of cutting capacity available, 40 hours of sanding capacity, and 60 hours of finishing capacity. Assume all doors produced can be sold for a profit of $550 and all windows can be sold for a profit of $450.Formulate an LP model, then use Solver to use an Answer and Sensitivity Reports for your model and answer the following questions.

Question (A) Explain the shadow price (in dollars) for the finishing process. The shadow price for the finishing process is $ (?) .

Question (B) If 19 additional hours of cutting capacity became available, how much additional profit (in dollars) could the company earn?

Question (C) Suppose another company wanted to use 14 hours of Sanderson's sanding capacity and was willing to pay $450 per hour to acquire it? Should Sanderson agree to this? (Enter your answer as a positive number in dollars.)

Question (C1) Sanderson should agree to this since it would increase Sanderson's total profit by $ (?)

Question (C2) How (if at all) would your answer change if the company instead wanted 25 hours of sanding capacity? (Enter your answer as a positive number in dollars.) Our answer be the opposite since this would decrease Sanderson's total profit by $ (?)