Maximum demand and profit margins for product


Discuss the folloiwng:

Q: A plant can manufacture four different products: A, B, C, and D in any combination. Each product requires time on each of four machines in minutes per pound of product, as shown in the following table. Each machine is available 60 hours per week. The maximum demand and profit margins for each product are also provided in the table.

Below are the solution and sensitivity report obtained using Solver.

1598_machine.jpg

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For each of the following changes, calculate the new optimal profit (do not make any additional Solver runs). For each answer, indicate what numbers you used from the report and how you used them in getting your answer. Answer each question independently from the others.

a) The price of product B increases by 10%.

b) The price of D decreases by 15%.

c) 10% of the available time on Machine 2 is lost.

d) At least 1 unit of product A must be sold.

e) The time available on each machine goes down by 20% (That is, 20% on Machine 1 is lost, 20% on Machine 2 is lost, and so on).

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Mathematics: Maximum demand and profit margins for product
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