Use shadow prices from solver sensitivity report

Assignment Help Operation Management

Reference no: EM131226609

The Otto Maddick Machine Tool Company produces two products, muffler bearings and torque amplifiers. One muffler bearing requires 0.125 hr. of assembly labor, 0.25 hrs. in the stamping department and 9 square feet of sheet metal. Each torque amplifier requires 1/3 hr. in assembly and 0.25 hrs. in stamping and uses 6 square feet of sheet metal. Current capacities are 400 hours of assembly labor and 375 hours of stamping capacity. Sheet steel costs $0.15 per square foot. Muffler bearings sell for $9 and torque amplifiers sell for $11.00. Use linear optimization to find the number of each product to make to maximize profit. (Do not constrain the solution to integers.) The available amount of sheet steel may be considered unlimited. The cost of Labor is not charged to the products.

A new product called the furtengrinder uses 0.5 hours of assembly time and 10 square feet of sheet metal and sells for $32.10.

Use shadow prices from Solver’s sensitivity report to determine the maximum number of stamping hours it could use before it would become unprofitable produce furtengrinders.

Note: Teacher has advised that the shadow price from Excel's Solver Sensitivty Report is used to calculate the stamping hours requirement. All related Chegg answers address the missing Stamping hours of furtengrinders missing and cannot be solved. Teacher informed me it is solvable from the shadow price.

Reference no: EM131226609

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