Question

A B C D E F G H J K M N O 1 Transportation Model (Basic) Use Solver on Data Ribbon to solve 2 3 Input Matrix: Destinations C D A 4 1 4 7 7 1 100 5 SUPPLY 8 8 2 12 3 200 6 5 3 10 16 150 7 90 80 120 160 8 Demand Required 10 Do not change or delete unshaded cells. 11 12 Solution Matrix: Total Supply Available Total Demand Required Destinations 450 D A C 450 13 0 90 1 0 10 100 14 2 0 90 110 0 200 15 3 80 0 0 70 150 16 80 90 120 160 Total Cost = 2300 17 Demand Met 18 19 20 21 first you have to calculate the optimal solution and minimum cost for the example problem determine the optimal solution in Excel using template on Canvas (when running, click on answer, sensitivity, don't need limits) 22 23 24 25 Answer the Following questions 26 1. what is the optimal solution? 27 2. from 'answer report': tell me what a binding constraint is (one sentence) and which constraints are binding? 28 3. from 'sensitivity report': 29 what does allowable increase mean, AND how much increase is allowed for cell $E$15? 30 what does the shadow price for Cell $D$17 mean? Sources Sources

HERE IS THE SENSITIVITY REPORT!!!!!!!!!

PLEASE SHOW ALL WORK

Answer 1

Q1)

The optimal solution is

Solution Matrix: DU MIUI Callye Ulei Destinations A B C D 0 0 1090 0 90 1100 8000 70 Anna Sources

Q2)

For binding constraints, final value is equal to constraint R.H side.

In the current case, for all constraints final value is equal to the R.H. Side. Therefore, all the constraints are binding.

Q3)

Allowable increase is that value by which a particular variable can be increased with out affecting the current optimal solution. For decision variables, it is the objective function coefficient for a particular variable

Increase allowed for cell E15 = 4

(ii)

Shadow price is that value by which the objective function value becomes better for one unit change  of that resource . In this case, the cost decrease by shadow price for one unit change  of that resource

Shadow price for D17 is $8

D17 represents demand of destination A. If demand of A is reduced by one unit, the cost decreases by $8.