A manufacturing facility for Company XYZ that produces doors and windows utilizes three manufacturing processes: cutting, sanding and finishing. There are limited resources for each of these processes. Assume that the decision variables are defined to represent the number of doors produced per week and the number of windows produced per week. Assume that the objective function is a profit maximization objective with unit profit for doors being $500 and unit profit for windows being $400.
Assume that you are given the Answer report and Sensitivity report in TAB Q2S and Q2A. Answer parts (a)-( e) below.
If the unit profit on doors increased to $700 would the optimal solution change? Why or why not?
If the unit profit on doors increased to $700 what is the maximum profit?
If the unit profit on windows decreased to $200 would the optimal solution change? Why or why not?
Suppose another company wanted to use 15 hours of XYZ’s sanding capacity in a week and was willing to pay $400 per hour to acquire it. Should Company XYZ agree to this? Why or why not?