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Crebo Manufacturing produces four types of structural support…
Crebo Manufacturing produces four types of structural support fittings?plugs,
?rails, rivets, and clipswhich are machined on two CNC machining centers. To find an optimal solution to maximize the gross? profit, the Excel? add-in Solver was used. The accompanying figure shows the Solver Sensitivity Report. Using only the information in the Sensitivity? Report, complete parts a through e.
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Question content area bottom
Part 1
a. Explain the value of the reduced cost
?(-0.4?)
for the number of plugs to produce. Choose the correct answer below.
A.
The value
-0.4
indicates that if the gross margin of plugs goes up by
0.4?,
the company might start making plugs.
B.
The value
-0.4
indicates that the gross margin of plugs would need to be
0.4
more than the gross margin for clips before the company might start making plugs.
C.
The value
-0.4
indicates that if the gross margin of plugs goes down by
0.4?,
the company might start making plugs.
D.
The value
-0.4
indicates that the gross margin of plugs would need to be
0.4
less than the gross margin for clips before the company might start making plugs.
Part 2
b. If the gross margin for rails is decreased to
?$1.05?,
can you predict what the optimal solution and profit will? be? Select the correct choice? and, if? necessary, fill in the answer? box(es) to complete your choice.
A.
The optimal solution would not change. The profit would not change.
B.
The optimal solution would not change. The profit would change to
?$enter your response here.
?(Type integers or decimals rounded to two decimal places as? needed.)
C.
The optimal solution would not change. The profit would? change, but its value cannot be determined.
D.
The optimal solution and profit might? change, but their values cannot be determined.
E.
The optimal solution might? change, but the values cannot be determined. The profit would change to
?$enter your response here.
?(Type integers or decimals rounded to two decimal places as? needed.)
Part 3
c. Suppose that the gross margin for rivets is increased to
?$0.75.
Can you predict what the optimal solution and profit will? be? Select the correct choice? and, if? necessary, fill in the answer? box(es) to complete your choice.
A.
The optimal solution would not change. The profit would not change.
B.
The optimal solution might? change, but the values cannot be determined. The profit would change to
?$enter your response here.
?(Type integers or decimals rounded to two decimal places as? needed.)
C.
The optimal solution and profit might? change, but their values cannot be determined.
D.
The optimal solution would not change. The profit would change to
?$enter your response here.
?(Type integers or decimals rounded to two decimal places as? needed.)
E.
The optimal solution would not change. The profit would? change, but its value cannot be determined.
Part 4
d. If the gross margin for clips is reduced to
?$1.15?,
can you predict what the optimal solution and profit will? be? What if the gross margin is reduced to
?$1.25??
If the gross margin for clips is reduced to
?$1.15?,
can you predict what the optimal solution and profit will? be? Select the correct choice? and, if? necessary, fill in the answer? box(es) to complete your choice.
A.
The optimal solution and profit might? change, but their values cannot be determined.
B.
The optimal solution would not change. The profit would? change, but its value cannot be determined.
C.
The optimal solution would not change. The profit would not change.
D.
The optimal solution would not change. The profit would change to
?$enter your response here.
?(Type integers or decimals rounded to two decimal places as? needed.)
E.
The optimal solution might? change, but the values cannot be determined. The profit would change to
?$enter your response here.
?(Type integers or decimals rounded to two decimal places as? needed.)
Part 5
What if the gross margin is reduced to
?$1.25??
Select the correct choice? and, if? necessary, fill in the answer? box(es) to complete your choice.
A.
The optimal solution would not change. The profit would change to
?$enter your response here.
?(Type integers or decimals rounded to two decimal places as? needed.)
B.
The optimal solution and profit might? change, but their values cannot be determined.
C.
The optimal solution might? change, but the values cannot be determined. The profit would change to
?$enter your response here.
?(Type integers or decimals rounded to two decimal places as? needed.)
D.
The optimal solution would not change. The profit would? change, but its value cannot be determined.
E.
The optimal solution would not change. The profit would not change.
Part 6
e. Suppose that an additional
500
minutes of machine capacity is available. How will the optimal solution and profit? change? What if planned maintenance reduces capacity by
300
?minutes?
How will the optimal solution and profit change if an additional
500
minutes of machine capacity is? available? Select the correct choice? and, if? necessary, fill in the answer? box(es) to complete your choice.
A.
The optimal solution would not change. The profit would? change, but its value cannot be determined.
B.
The optimal solution would not change. The profit would not change.
C.
The optimal solution would not change. The profit would change to
?$enter your response here.
?(Type integers or decimals rounded to two decimal places as? needed.)
D.
The optimal solution and profit might? change, but their values cannot be determined.
E.
The optimal solution might? change, but the values cannot be determined. The profit would change to
?$enter your response here.
?(Type integers or decimals rounded to two decimal places as? needed.)
Part 7
How will the optimal solution and profit change if the machine capacity available is reduced by
300
?minutes? Select the correct choice? and, if? necessary, fill in the answer? box(es) to complete your choice.
A.
The optimal solution and profit might? change, but their values cannot be determined.
B.
The optimal solution would not change. The profit would? change, but its value cannot be determined.
C.
The optimal solution would not change. The profit would change to
?$enter your response here.
?(Type integers or decimals rounded to two decimal places as? needed.)
D.
The optimal solution would not change. The profit would not change.
E.
The optimal solution might? change, but the values cannot be determined. The profit would change to
?$enter your response here.
?(Type integers or decimals rounded to two decimal places as? needed.)
ABCDEFGH6Objective Cell? (Max)7CellNameFinal Value8?$A$13Profit182000910Decision Variable Cells11FinalReducedObjectiveAllowableAllowable12CellNameValueCostCoefficientIncreaseDecrease13?$B$10Units Produced Plugs? (X1)0
-0.4
0.40.4
1E+30
14?$C$10Units Produced Rails? (X2)0
-0.3
1.30.3
1E+30
15?$D$10Units Produced Rivets? (X3)0
-0.25
0.650.25
1E+30
16?$E$10Units Produced Clips? (X4)14000001.3
1E+30
0.160000081718Constraints19FinalShadowConstraintAllowableAllowable20CellNameValuePriceR.H. SideIncreaseDecrease21?$A$16Capacity Used2800000.6280000
1E+30
280000
