Question 54) ListenA company produces A and B. The objective is to determine the number of units of Aand B to produce to maximize total profit. The model is presented below:Max 2A + 6BS.T.Production 3A + B <= 60Raw Materials 2A + 4B >= 50Order 4A - 2B >= 20N-N A, B >= 0Assume the optimal solution is (A-14, B=18) and total profit = 136. Consider thefollowing sensitivity report: Following the same case, optimal solution is (A=14, B-18), total profit = 136, and sensitivityreport given below.Variable CellsFinal Reduced Objective Allowable AllowableCell$B$9 units ASC$9 units BNameValueCostCoefficient IncreaseDecrease1416141861E+30 5.333333333ConstraintsFinal Shadow Constraint Allowable AllowableCellNameValuePriceR.H. SideIncreaseDecreaseSB$14 Production LHS$B$15 Raw Materials LHS602.8601E+302510050501E+30SB$16 Order LHSWhat happens if Prodluction's RHS = 50 (instead of 60) AND Order's RHS = 30(instead of 20)?20-1.62050140%3!Optimal solution will change, new total profit = 92Optimal solution will change, I need to re-run SOLVER to get the new totalprofitOptimal solution will stay the same, new total profit = 92Optimal solution stay the same, new total profit = 124%3!

Linear programming is a technique used to maximize or minimize the set of given variables. These…

Answered: Following the same case, optimal…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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