Malloy Milling grinds calcined alumina to a standard granular size. The mill produces two different size products, regular grind and super grind, from the same raw materials. After reviewing the production rate, demand, and profit for each of the two types of grind, Malloy Milling found the accompanying linear optimization model for profit, where R is the number of tons of regular grind produced and S is the number of tons of super grind produced. Implement the linear optimization model and find an optimal solution. Using the Solver Sensitivity Report, answer the following questions, explaining what information you used in the Sensitivity Report. Complete parts a through c. A Click the icon to view the Malloy Milling linear optimization model. a. What impact will changing the required minimum number of tons per week (currently 700) have on the solution? Since the shadow price is increasing the minimum number of tons per week will profits, while decreasing the minimum number of tons per week will V profits. b. If the price per ton for regular grind is increased to $1050, how will the solution be affected? O A. The optimal solution and profit could both change. The new profit would be $. Malloy Milling Linear Optimization Model (Round to the nearest dollar as needed.) O B. The optimal solution would not change. The profit would change to S. Maximize Profit = 1000 R+ 1900S R+S2 700 R S (Round to the nearest dollar as needed.) (Total production) OC. The optimal solution would not change. The profit would not change 5*3168 R2 400 S2 200 (Time limitation) c. If the price per ton for super grind is decreased to $1300 because of low demand, how will the solution change? (Regular demand) (Super demand) O A. The optimal solution and profit could both change. The new profit would be $ (Round to the nearest dollar as needed.) O B. The optimal solution would not change. The profit would change to $ (Round to the nearest dollar as needed.) Print Done OC. The optimal solution would not change. The profit would not change.
Malloy Milling grinds calcined alumina to a standard granular size. The mill produces two different size products, regular grind and super grind, from the same raw materials. After reviewing the production rate, demand, and profit for each of the two types of grind, Malloy Milling found the accompanying linear optimization model for profit, where R is the number of tons of regular grind produced and S is the number of tons of super grind produced. Implement the linear optimization model and find an optimal solution. Using the Solver Sensitivity Report, answer the following questions, explaining what information you used in the Sensitivity Report. Complete parts a through c. A Click the icon to view the Malloy Milling linear optimization model. a. What impact will changing the required minimum number of tons per week (currently 700) have on the solution? Since the shadow price is increasing the minimum number of tons per week will profits, while decreasing the minimum number of tons per week will V profits. b. If the price per ton for regular grind is increased to $1050, how will the solution be affected? O A. The optimal solution and profit could both change. The new profit would be $. Malloy Milling Linear Optimization Model (Round to the nearest dollar as needed.) O B. The optimal solution would not change. The profit would change to S. Maximize Profit = 1000 R+ 1900S R+S2 700 R S (Round to the nearest dollar as needed.) (Total production) OC. The optimal solution would not change. The profit would not change 5*3168 R2 400 S2 200 (Time limitation) c. If the price per ton for super grind is decreased to $1300 because of low demand, how will the solution change? (Regular demand) (Super demand) O A. The optimal solution and profit could both change. The new profit would be $ (Round to the nearest dollar as needed.) O B. The optimal solution would not change. The profit would change to $ (Round to the nearest dollar as needed.) Print Done OC. The optimal solution would not change. The profit would not change.
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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Transcribed Image Text:Malloy Milling grinds calcined alumina to a standard granular size. The mill produces two different size products, regular grind and super grind, from the same raw materials. After reviewing the production rate, demand, and profit for each of the two
types of grind, Malloy Milling found the accompanying linear optimization model for profit, where R is the number of tons of regular grind produced and S is the number of tons of super grind produced. Implement the linear optimization model and
find an optimal solution. Using the Solver Sensitivity Report, answer the following questions, explaining what information you used in the Sensitivity Report. Complete parts a through c.
1 Click the icon to view the Malloy Milling linear optimization model.
(.....
a. What impact will changing the required minimum number of tons per week (currently 700) have on the solution?
Since the shadow price is
increasing the minimum number of tons per week will
profits, while decreasing the minimum number of tons per week will
profits.
b. If the price per ton for regular grind is increased to $1050, how will the solution be affected?
O A. The optimal solution and profit could both change. The new profit would be $
Malloy Milling Linear Optimization Model
(Round to the nearest dollar as needed.)
O B. The optimal solution would not change. The profit would change to $
Maximize Profit = 1000 R+ 1900 S
R+S2 700
R S
s 168
(Round to the nearest dollar as needed.)
(Total production)
O C. The optimal solution would not change. The profit would not change.
(Time limitation)
5*3
c. If the price per ton for super grind is decreased to $1300 because of low demand, how will the solution change?
R2 400
(Regular demand)
(Super demand)
S2 200
O A. The optimal solution and profit could both change. The new profit would be $
(Round to the nearest dollar as needed.)
O B. The optimal solution would not change. The profit would change to $
Print
Done
(Round to the nearest dollar as needed.)
OC. The optimal solution would not change. The profit would not change.
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