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Question:
In Chapter 4 of your textbook, you will read again about the problems of the Flair Furniture Company, first introduced in Chapter 2. The Flair Furniture Company is trying to determine the best product mix for profit maximization and performs a sensitivity analysis of the linear programming problem using graphs (pp. 121-127) and then using sensitivity reports generated by Excel Solver (p. 128).
Discuss why you believe a sensitivity analysis is required in this case or for a similar business problem where an optimal solution to linear programming formulation is desirable.
In addition, would you, as a business analyst, find information in the sensitivity analysis about the shadow price of an available resource useful? In what way?
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