Are there alternate optimal solutions to this problem


Use Solver to create a Sensitivity Report for question 28 at the end of Chapter 3, and answer the following questions:

a. Are there alternate optimal solutions to this problem? Explain.

b. What is the highest possible octane rating for regular gasoline, assuming the company wants to maximize its profits? What is the octane rating for supreme gasoline at this solution?

c. What is the highest possible octane rating for supreme gasoline, assuming the company wants to maximize its profits? What is the octane rating for regular gasoline at this solution?

d. Which of the two profit-maximizing solutions identified in parts b and c would you recommend the company implement? Why?

e. If the company could buy another 150 barrels of input 2 at a cost of $17 per barrel, should the company do so? Why?

f. Create a Spider Plot showing the change in the total profit obtained by changing the availability of the inputs from 90% to 110% in 2% increments. What does this chart reveal, and what are the managerial implications?

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