Variable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $C$7 Quantity Product 1 $D$7_ Quantity Product 2 SE$7 Quantity Product 3 6.67 90 3.75 6.67 30 41.25 120 9.17 150 30 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease $E$10 Machine 1 105 400 1E+30 295 $F$11 Machine 2 240 6.67 240 15 18.33 $E$12 Machine 3 320 320 3.33 27.5 $E$13 Total Labor 665 665 55 A B 1 2 Incline Electronics 3 4 Product 1 6.67 Product 2 41.25 Product 3 9.17 5 Quantity 6 Unit Profit $90.00 $120.00 $150.00 Total Profit $6,925 7 8 Processing Time (hours per unit) Hours Used Hours Available 9 Machine 1 2 1 105 400 10 Machine 2 3 4 6 240 240 11 Machine 3 4 6 320 320 12 Total Labor 9 12 12 665 665
One of your staff members developed the following excel optimal production plan. You must now review this optimal plan and write a memo to the VP of Operations (Mr. Monroe) with recommendations as to how this optimal production plan can be improved to increase the Total Profit. Your recommendation should identify and explain at least 3 options. These three options must be based only with information present in the excel production plan, sensitivity report and components of LP modeling [decision variables, objective function (prices and variable cost) and resource constraints]
The business memo should be 1 to 2 pages. A professionally written proper style and grammar are worth 50% of the grade. Your recommendations on the three options are worth 50%.
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