Interpret this sensitivity report for the variable cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$13 A 9 0 5 1E+30 1.25
$C$13 B 0 -2 6 2 1E+30
$D$13 C 0 -2 1 2 1E+30
Answer: Decision variable A is the only variable that appears in the optimal answer. Nine units of A are optimal and the coefficient is 5, so the objective function value is 45. The optimal answer will remain nine units of A as long as the coefficient remains in the range of 3.75 to infinity. Decision variable B, with a coefficient of 6, is not used in the optimal answer. If the coefficient of B increased to 8 or beyond, it would enter the model with a positive value. If the value of B's coefficient drops by any amount, it will not enter the decision space. Similarly, C with an objective coefficient of 1, is not in the answer unless the coefficient increases to 3 or beyond. If we added a constraint that required either B or C to enter the solution, the value of the objective function would drop by 2, from 45 to 43.
You might also like to view...
Steve is an American Porsche customer who is ambitious, power-driven, and expects to be noticed by others. He expects to be recognized as an owner of a Porsche. Which of the following psychographic categories does Steve belong to?
A) Proud Patrons B) Top Guns C) Elitists D) Fantasists
Once standard costs for direct materials, direct labor, and variable and fixed overhead have been developed, a total standard unit cost can be determined at any time
Indicate whether the statement is true or false