Hello,
My question relates to the following book: Spreadsheet Modeling and Decision Analysis eight edition, and the question is related to Case 4.2 on page 184.
My question is:
“Parket Sisters has an opportunity to sell some of its plastic for $6.50 per ounce to another company. The other company (which does not produce pens or pencils and therefore is not a competitor) wants to buy 300 ounces of plastic. Should Parket Sisters sell the plastic to the other company? What happens to Parket Sisters product mix and overall profit if it does sell the plastic? Be as specific as possible.”
I did find this question answered under the textbook solutions, however, I’m not sure if it is right. The answer is not specific as to where or how they found the numbers/answers.
I have provided a screenshot below of the sensitivity report.
A B 1 Microsoft Excel 16.0 Sensitivity Report 2 Worksheet: [Case #2.xlsm]Original Problem 3 Report Created: 9/11/2017 4:34:25 PM 6 Variable Cells Final Value Reduced Objective Allowable Allowable Decrease Cell Name Cost Coefficient Increase 700 9SBS4 Number to Produce Ballpoints 10 SC$4 Number to Produce Pencils 11 SD$4 Number to Produce Fountain pens 133.3333333 12 13 Constraints 0 -1.383333333 3 1.383333333 1.75 1E+30 Final Value Shadow Constraint Allowable Allowable Name Price 15 Cell 16 SES8 Plastic Total Used 17 SE$9 Chrome Total Used 18 SE$10 Stainless Steel Total Used 19 20 21 R.H. Side Increase Decrease 1000 1200 2000 555.5555556 333.3333333 1000 1.166666667 200 466.6666667 1E+30 333.3333333 866.6666667 2000 0.8 23