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s. University Ceramics manufactures plates, mugs, and steins that include the ca

ID: 358834 • Letter: S

Question

s. University Ceramics manufactures plates, mugs, and steins that include the campus name and logo for sale in campus bookstores. The time required for each item to through two state for production (molding and finishing) and the material required (clay) and the corresponding amount of each resource available in the upcoming production period. Plates Mug Steins Available Molding (minutes) Finishing (Minutes) Clay (ounces) 12 7200 Profit per unit 3.10 $ 475 $ 400 A linear programming model has been formulated to determine the production levels that would maximize profit. The sensitivity report form that model is given below. Variable Cells Final Reduced Objective Allowable Allowable Value Cell Name Coefficient Increase Decrease Plates 3.1 2.233333333 0.366666667 4.75 0.458333333 1E+30 1.375 0 -0.458333333 $11 Steins 0.65 Constraints Final Shadow Constraint Allowable Allowable R.H. Side Increase Decrease Cell Name -SGS14 Molding(minutes)AmountUsed200-02166666672400 200 SGS15 Finishing (Minutes) Amount Used 7200 0.279166667 72002400 SG$16 Clay (ounces) Amount Used 2400 300 3000 a. How many plates, mugs, and steins should be produced? Suppose the profit per plate decreases from $3.10 to $2.80, would the optimal production quantities change? Explain how you know. b.

Explanation / Answer

5.a. As per the sensitivity report, the final value are

Plates: 300

Mug:0

Steins:0

b.The optimal production quantity will not change if profit per plate decreases from $3.10 to $2.80 since it the maximum allowable decrease is 0.366 and in this case, we are decreasing it by 0.30 only.