# Project #10739 - LP sensitivity

make sure to show the process

The A-B-C department of a large company makes three products (A, B and C).  The department is preparing for its final run next week, which is just before the annual two-week vacation during which the entire department shuts down.  The manager wants to use up existing stocks of the three raw materials used to fabricate A, B, and C.

She had formulated the LP model and obtained the optimal results:

X1 = quantity of Product A

X2 = quantity of Product B

X3 = quantity of Product C

Maximize                          12X1 + 15X2 + 14X3

St                                       3X1 + 5X2 + 8X3 < 840 pounds      (Material 1)

2X1           + 3X3 < 575 pounds         (Material 2)

4X1 + 6X2 + 4X3 < 700 pounds     (Material 3)

X1, X2, X3 > 0

Enter this problem into an Excel spreadsheet and obtain the optimal solution by using Solver.

Submit the following:

1. Printout of the spreadsheet showing above problem with your name at the top of the spreadsheet
2. Printout of the “Answer Report” from Solver
3. Print the “Sensitivity Report” from solver
4. On a separate piece of paper answer the following questions:

Bring your solution to class on the due date.
1.        If B’s profit per unit could be increased to \$18, how much B would be produced? Explain            how you obtained your answer.

2.         What if it was determined that the profit on item C was not actually \$14 but was only \$12.50.  What impact would this have on the total quantities of items A, B and C being produced?  What impact would it have on total profit?

3.        What is the range of feasibility for the Material 3 RHS?

4.         By how much would profit increase if an additional 100 pounds of material 3 could be obtained at its usual cost?

5.         What would the total profit equal if an additional 500 pounds of material 3 could be obtained at its usual cost?

6.         Do you see any difficulty in allowing a different department (X-Y-Z) to take 100 pounds of material 2?  How would this affect A-B-C’s profit?

 Subject Business Due By (Pacific Time) 08/12/2013 07:00 am
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