Use the Sensitivity Report to answer the questions below Thi

Use the Sensitivity Report to answer the questions below. This output is based on the same problem as the last two assignments, so the variables and spider, elephant and mouse stuffed animals and the objective is to maximize profits. If the profit on Spiders increased to $5.00, would the current solution be the same? If the number of eyes decreased by 200, would the current solution by the same? If the amount of sewing machine time decreased to 150 hours and the profit on mice increases by $ 4.00, would the current solution be the same? If amount of fur decreased by 25 and the amount of filling decreased by 40, would the current solution be the same? You paid $0.50 for the eyes. To get more (overnight delivery) would cost you a total of $1.0 per eye (an increase of $0.50 per eye). Should you order more eyes to be delivered over night? Could you order as many as 500?

Solution

1) Profit on spiders is currently 2$ and its allowable increase is 11.417$ so profit can go till 13.417$ without changing the current solution.
Thus if the profit on spiders increased to 5$ the current solution would still hold.

2) Current number of eyes as per the solution are 1000, and allowable decrease is 190.805 so a 200 decrease would exceed the allowable decrease and change the solution from the current solution to give a new solution

3) The binding value of sewing time is 200 hours but as per the optimum solution only 115.53 hours of sewing is being utilised so total sewing time coming down to 150 hours won\'t affect the solution and
allowable increase on the profit on mice is 34.25 so a 4$ increase wont change the solution, hence the solution will remain the same

4) allowable decrease on fur is 10³⁰ which is > 25 and allowable decrease on filliing is 283.523 which is > 40;
So neither of these changes will affect the solution as it will remain the same

5) Currently the shadow price for eyes is 0.582 and allowable increase is 731.148; which means that we can increase up to 731.148 more eyes and each increase will give us an increased value of objective function (which is increased profit in this case) of 0.582$ so to pay extra 0.5$ to get 0.582$ profit is simply worth it as you will get a profit of 0.082$ per eye ordered on an ovenight basis. Yes you can order 500 eyes too as the allowable increase limit is 731.148;