Problems:
Hartley's furniture:Sensitivity analysis problem
Hartley's makes furniture. The time required for each item is listed below.
Find the mix of products and sensitivity report to make the highest profit for Harley's.
|
|
Chairs |
Tables |
Bookcases |
Availaable |
| Assembly (minutes) |
40 |
80 |
50 |
8100 |
| Finishing (minutes) |
20 |
30 |
30 |
4500 |
| Wood (pounds) |
10 |
80 |
50 |
9000 |
| Unit profit |
|
$125 |
$360 |
$300 |
|
a. If the profit per table increases by , will this change the optimal production numbers? What can does the sensitivity report say about
changes in the total profit?
b. Suppose the profit per table increases by $90 and the profit per bookcase decreases by $50. Will this change the optimal production quantities? What can be said about the change in total profit?
c. Suppose a worker calls in sick so 8 fewer hours are now available in assembly. How much would this affect total profit?
Would it change the optimal production quantities?
d. Why is the shadow price for the wood constraint = 0?
e. If a new worker is hired to split their time between assembly and finishing. What is the best way to split the time or does it matter?