A company makes three components for sale. The components are processed on two machines: a shaper and a grinder. The time required. (in minutes) on each machine are as follows: Component Shaper Time Grinder Time A 6 4 B 4 5 C 4 2 The shaper is available for 7200 min. and grinder for 6600 min. No more than 200 units of component C can be sold, but up to
A company makes three components for sale. The components are processed on two machines: a shaper and a grinder. The time required. (in minutes) on each machine are as follows:
| Component | Shaper Time | Grinder Time |
| A | 6 | 4 |
| B | 4 | 5 |
| C | 4 | 2 |
The shaper is available for 7200 min. and grinder for 6600 min. No more than 200 units of component C can be sold, but up to 1000 units of each of the other components can be sold. In fact the company has orders for 600 units of component A that must be satisfied. The profit contributions for components A, B and C are $8, $6 and $9 respectively.
Formulate the problem for deciding the production quantities.
Solve the problem using Excel Solver.
Run the sensitivity analysis report in Excel Solver.
What are the objective coefficient ranges (
What are the dual prices for each constraint? Interpret these.
What are the right-hand side ranges (Range of Feasibility)? Interpret them.
If more time is available on grinder, how much would it be worth?
If more units of component 3 can be sold at the same price, should the company go for it? What will be the effect?
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