Question

Refer to the following sensitivity report Vaiatle Cels Reduced Objectirve Cel Hame Cost Value 3 C$6 Activily 2 $DS6 Artvily 3 23 ED 17 10 1E+3D 2D Cel Hame SE$2 Resuute A $ES3 ResorteB $E$4 ResorteC Value 2D RH Side 2D 7.T8 10 12.5 10 18 1E+3D Based on the results, a one unit increase in resource C would lead to $ increase in the total A. $7.78 B. $18 C. $40 D. $0

Answer 1

1. D. $0

Shadow price of resource C is 0, hence one unit increase in resource C has no effect in total profit

2. C. 13<=A2<=53

For activity 1, allowable increase =23, allowable decrease = 17, objective coefficient = 30

Lower value = 30 - 27 = 13

Upper value = 30+23 = 53

3. B. the original solution remains optimal

For activity 1, allowable increase =23, allowable decrease = 17, objective coefficient = 30

Lower value = 30 - 27 = 13

Upper value = 30+23 = 53

Original solution remains optimal for coefficient of activity 1 in the range of (13,53)

4. C. will increase by $38.9

Shadow price of resource A is $7.78

one unit increase in resource A will increase objective function value by $7.78. Hence 5 units increase will increase objective function value by $7.78*5 = $38.9