On the tab labeled "Original Problem", I have provided the modeling of Case 4.2 beginning on Page 184. Carefully read the case in the textbook and then review the model to familiarize yourself with the integration of the LP into Excel.
On the "Original Problem" tab, there are five questions. After loading the Excel Solver, solve the model, obtain the sensitivity report, and use the sensitivity report to answer Questions 1 though 5. Each question is worth 16 points: 8 points for correctly identifying the cell value(s) you used from the sensitivity report to justify your response and 8 points for a clear, concise, grammatically response correctly answering the question. Your responses should be typed in unbolded black font right after the statement of each question.
Remember, cases are individual work. Good luck and as always...HAVE FUN!
Question 1 (16 Points): What is the optimal solution and associated profit?
Question 2 (16 Points): A local distributor has offered to sell Parket Sisters an additional 500 ounces of stainless steel for sixty cents per ounce more than it ordinarily pays. Should the company buy the steel at that price? Explain your answer.
Question 3 (16 Points): Parket Sisters has an opportunity to sell some of its plastic for $6.50 per ounce to another company. The other company (which does not produce pens or pencils and therefore is not a competitor) wants to buy 300 ounces of plastic. Should Parket Sisters sell the plastic to the other company? What happens to Parket Sisters' product mix and overall profit if it does sell the plastic. Be as specific as possible.
Question 4 (16 Points): The R&D Department at Parket Sisters has been redesigning the mechanical pencil to make it more profitable. The new design requires 1.1 ounce of plastic, 2.0 ounces of chrome, and 2.0 ounces of stainless steel. If the company can sell one of these new pencils at a net profit of $3.00, should it approve the new design? Explain your response.
Yes, this new desihn should be approved as wih new design company can produce pencil an increase total profit to $2,800.
Question 5 (16 Points): If the profit on a fountain pen is $6.75 instead of $5.00, what is the optimal product mix and optimal profit?
On the "Original Problem" tab, there are five questions. After loading the Excel Solver, solve the model, obtain the sensitivity report, and use the sensitivity report to answer Questions 1 though 5. Each question is worth 16 points: 8 points for correctly identifying the cell value(s) you used from the sensitivity report to justify your response and 8 points for a clear, concise, grammatically response correctly answering the question. Your responses should be typed in unbolded black font right after the statement of each question.
Remember, cases are individual work. Good luck and as always...HAVE FUN!
Question 1 (16 Points): What is the optimal solution and associated profit?
Question 2 (16 Points): A local distributor has offered to sell Parket Sisters an additional 500 ounces of stainless steel for sixty cents per ounce more than it ordinarily pays. Should the company buy the steel at that price? Explain your answer.
Question 3 (16 Points): Parket Sisters has an opportunity to sell some of its plastic for $6.50 per ounce to another company. The other company (which does not produce pens or pencils and therefore is not a competitor) wants to buy 300 ounces of plastic. Should Parket Sisters sell the plastic to the other company? What happens to Parket Sisters' product mix and overall profit if it does sell the plastic. Be as specific as possible.
Question 4 (16 Points): The R&D Department at Parket Sisters has been redesigning the mechanical pencil to make it more profitable. The new design requires 1.1 ounce of plastic, 2.0 ounces of chrome, and 2.0 ounces of stainless steel. If the company can sell one of these new pencils at a net profit of $3.00, should it approve the new design? Explain your response.
Yes, this new desihn should be approved as wih new design company can produce pencil an increase total profit to $2,800.
Question 5 (16 Points): If the profit on a fountain pen is $6.75 instead of $5.00, what is the optimal product mix and optimal profit?
