Sensitivity Analysis

MGMT 430 Sensitivity Analysis Assignment – Week 2 – Dropbox 3

Reference the following sensitivity report to answer the questions:

Variable Cells
			Final	Reduced	Objective	Allowable	Allowable
	Cell	Name	Value	Cost	Coefficient	Increase	Decrease
	$B$5	Number to Make Chair	0	-230	240	230	1E+30
	$C$5	Number to Make Table	10	0	720	180	120
	$D$5	Number to Make Armoire	15	0	600	120	120
Constraints
			Final	Shadow	Constraint	Allowable	Allowable
	Cell	Name	Value	Price	R.H. Side	Increase	Decrease
	$E$9	Assembly Minutes Used	3600	20	3600	400	600
	$E$10	Finishing Minutes Used	2000	4.5	2000	400	400
	$E$11	Wood Pounds Used	3600	0	4000	1E+30	400

What is the optimal solution?

Suppose the profit per table changed to $950. Will the optimal solution change, and what can be said about the effect on total profit?

Suppose the profit per table changed to $800. Will the optimal solution change, and what can be said about the effect on total profit?

Suppose there are 300 less minutes available for Assembly. What can be said about the effect on total profit?

Suppose the company had an opportunity to acquire 500 minutes of Finishing capacity for a total cost of $2300. Should they do so? Explain.