Question

Max Z=33,600

X1=240

X2=420

Using the solver report and the sensitivity report answer the questions below. Please show your work:

1. Assume that there is a disruption in the supply of polymer. Rather than 900 lbs of polymer, assume the organization only received 700 lbs. What will be the optimal profit?

2. Assume the organization has decided to develop up to 800 bikes, rather than 700. What will the optimal solution change by?

Answer 1

1)

since shadow price of polymer = 32

hence when polymer decrease by 200 units {900 to 700}

profit will decrease by 200 * 32 = 6400

optimal profit = 33600 - 6400 = 27200

2)

since shadow price of total production used is 0

and allowable increase is infinity

optimal profit will be not change when it is increase from 700 to 800

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