
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Transcribed Image Text:The table below represents the sensitivity report of a profit maximization problem
with possible activities X1 and X2, which are constrained by resources C1, C2, and
C2.
6 Variable Cells
7
8
9
10
Name
Cell
$B$2 Activity Levels X1
$C$2 Activity Levels X2
11
12 Constraints
13
14
15
16
17
18
Cell
$D$6 C1 LHS
$D$7 C2 LHS
$D$8 C3 LHS
Name
True
False
Final Reduced Objective Allowable Allowable
Value
Cost Coefficient
Increase Decrease
4
4
0
0
16
20
4
Final Shadow Constraint
Value Price R.H. Side
2
5
0
0.5
4.5
18
1E+30
Allowable Allowable
Increase
Decrease
20
20
4 1.454545455
1E+30
16
2
4.5
4
16
4
If the company is offered 10 additional units of the resource represented by
constraint 2 (C2) at a total cost of 10 dollars they should make that purchase.

Transcribed Image Text:The table below represents the sensitivity report of a profit maximization problem
with possible activities X1 and X2, which are constrained by resources C1, C2, and
C2.
6 Variable Cells
7
8
9
10
Cell
Name
$B$2 Activity Levels X1
$C$2 Activity Levels X2
11
12 Constraints
13
14
15
16
17
10.
Cell
$D$6 C1 LHS
$D$7 C2 LHS
$D$8 C3 LHS
Name
True
False
Final Reduced Objective Allowable Allowable
Value Cost Coefficient Increase. Decrease
4
4
0
0
16
20
4
Final Shadow Constraint
Value Price R.H. Side
2
5
0
0.5
4.5
18
1E+30
Allowable Allowable
Increase
Decrease
1E+30
16
2
4.5
20
20
4 1.454545455
4
16
4
If the objective coefficient for product X1 increases to 25 then the company will
increase production of X1 and reduce production of X2.
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