(a) What is the optimal solution and the total profit contribution (in $)? DRB DRW total profit contribution $ (b) Another supplier offered to provide Deegan Industries with an additional 500 pounds of the steel alloy at $2 per pound. Should Deegan purchase the additional pounds of the steel alloy? Explain. Yes, there is no surplus of steel so any additional steel that becomes available should be purchased. OYes, the dual value for steel available is 8.8. Each pound of steel will increase profits more than the $2 per pound that the supplier is offering. O No, the dual value for steel available is 0.6. Each pound of steel will not increase profits enough to justify the $2 per pound that the supplier is offering. No, the allowable increase for steel is only 24 pounds, so the additional profits are not applicable for 500 pounds.
(a) What is the optimal solution and the total profit contribution (in $)? DRB DRW total profit contribution $ (b) Another supplier offered to provide Deegan Industries with an additional 500 pounds of the steel alloy at $2 per pound. Should Deegan purchase the additional pounds of the steel alloy? Explain. Yes, there is no surplus of steel so any additional steel that becomes available should be purchased. OYes, the dual value for steel available is 8.8. Each pound of steel will increase profits more than the $2 per pound that the supplier is offering. O No, the dual value for steel available is 0.6. Each pound of steel will not increase profits enough to justify the $2 per pound that the supplier is offering. No, the allowable increase for steel is only 24 pounds, so the additional profits are not applicable for 500 pounds.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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