Linear Programming Sensitivity Analysis

Given the following QSB+ computer output answer the questions below:

 
QSB+ Output

a)     If the variables stand for the number of each type of widgets to produce what is the total number of widgets that should be produced in an optimal solution?

 

b)     If the unit profit for Deluxe widgets is raised from $35 to $40 how many Deluxe widgets will be produced?

 

c)      If the unit profit for Deluxe widgets is raised from $35 to $40 what will be the overall profit for Acme?

 

d)     If the unit profit for Standard widgets is reduced from $25 to $20 will the optimal allocation change?  Why, why not?

 

e)     Considering Production and Assembly times, which is more valuable to the firm?  Why?

 

f)      If Acme were able to add 200 hours of Assembly time what would the effect be on profits?  (Be specific.)

 

g)    The Contract constraint reflects Acme’s obligation to supply Custom widgets on a long-term contract.  What would be the effect on                 profits if the current requirement to supply widgets were raised from 48 to 73?  (Be specific.)


 

Answers

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