Need to use sensitivity analysis in excel 7. Component Manufacturing. Vollmer Manufacturing makes three components for sale torefrigeration companies. The components are processed on two machines: a shaper and a grinder.The times (in minutes) required on each machine are as follows:Component123ShaperComponent644MachineGrinder452The shaper is available for 120 hours, and the grinder for 110 hours. No more than 200 units ofcomponent 3 can be sold, but up to 1,000 units of each of the other components can be sold. In fact,the company already has orders for 600 units of component 1 that must be satisfied. Theselling price and per unit variable cost for each of the three components are as follows:per unitSelling Price Material CostLabor Cost Component123Selling Price$25$18$27Material Cost$12$8$13Labor Cost$5$4$52<a. For each component, calculate the profit margin (profit margin = selling price - material cost- labor cost). Formulate and solve for the recommended production quantities that willmaximize contribution to profit.b. What are the objective coefficient ranges for the three components? Interpret these ranges forcompany management.c. What are the right-hand-side ranges? Interpret these ranges for company management.d. If more time could be made available on the grinder, how much would it be worth?e. If more units of component 3 can be sold by reducing the sales price by $4, should thecompany reduce the price?1

Decision Variables: Suppose-A be the units of component 1 manufacturedB be the units of component…

Answered: 7. Component Manufacturing. Vollmer…

Practical Management Science

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ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section: Chapter Questions

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