What are the optimal value for the decision variables

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Reference no: EM132207602

Question: Imagine you work for a company that manufactures phones, tablets, and watches. Supply chain disruptions have resulted in a limited supply of three components. The company has access to 2000 units of smart glass at a price of $20 per unit. They have access to (350 + n) cameras at a price of $30 per camera. They have access to 100 dials at a price of $10 per dial.

The company charges $400 per phone. A phone needs 4 units of smart glass, 3 cameras and $150 of other components. They charge $800 per tablet. A tablet needs 16 units of smart glass, 2 cameras and $250 of other components. They charge $200 per watch. A watch needs 1 unit of smart glass, 1 camera, 1 dial and $20 of other components.

1. What are the optimal value for the decision variables? Be sure to include units. (All of the variables are continuous. Decimal answers are acceptable.)

2. What is the optimal value for the objective function? Be sure to include units.

3. Suppose the price of a tablet increased to $810. Is it possible that the optimal values of the decision variables could change? What will the optimal value for the objective function become? Clearly show your logic. Use sensitivity analysis if you can. Otherwise reâ€solve the problem.

4. (Ignore #3.) Suppose the cost per camera increased to $35. Is it possible that the optimal values of the decision variables could change? What will the optimal value for the objective function become? Clearly show your logic. Use sensitivity analysis if you can. Otherwise reâ€solve the problem.

5. (Ignore #3 and #4.) Suppose the amount of smart glass falls to 1900 units. Is it possible that the optimal values of the decision variables could change? What will the optimal value for the objective function become? Clearly show your logic. Use sensitivity analysis if you can. Otherwise resolve the problem.

Reference no: EM132207602

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