Creative Kitchen Tools manufactures a wide line of gourmet cooking tools from stainless steel. For the coming production period, there is demand of 1200 for 8 quart stock pots, and unlimited demand for 3 quart mixing bowls and large slotted spoons. In the following model, the three variables measure the number of pots, bowls, and spoons to make. The objective function measures profit. Constraint 1 measures steel, constraint 2 measures manufacturing time, constraint 3 measures finishing time, and constraint 4 measures the stock pot demand.
Max
5x1 + 3x2 + 6x3
s.t.
3x1 + 1x2 + 2x3 15000
4x1 + 4x2 + 5x3 18000
2x1 + 1x2 + 2x3 10000
x1 1200
x1, x2, x3 0
The final tableau is:
a.Calculate the range of optimality for c1, c2, and c3.
b.Calculate the range of feasibility for b1, b2, b3, and b4.
c.Suppose that the inventory records were incorrect and the company really has only 14000 units of steel.What effect will this have on your solution?
d.Suppose that a cost increase will change the profit on the pots to $4.62.What effect will this have on your solution?
e.Assume that the cost of time in production and finishing is relevant.Would you be willing to pay a $1.00 premium over the normal cost for 1000 more hours in the production department? What would this do to your solution?
Correct Answer:
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b.13500 ...
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