ABC Automobiles

Answer-1(c)
Finding the best product mix

Decision Variables X1 X2
Solution 1900 1100
Co-efficient 3000 5000

Objective Function
Maximize 11200000 11002000 198000 1000

subject to
Constraints coefficient coefficient of X2 Inequality RHS
of X1
Constraint 1 1 2 <= 4100
Constraint 2 2 2 <= 6000
Constraint 3 2 0 <= 5000
Constraint 4 0 3 <= 4500

The best product mix is to produce 1900 units of Model A Truck and 1100 units of Model B Truck
Increase in contribution = Contribution at 4100 units capacity - Contribution at 4000 units capacity
= 11200000-11000000
= 200,000
Increase in Contribution at 1(b) = 2,000
No of times the contribution has increased = 200,000 = 100
2,000

Microsoft Excel 16.0 Answer Report

Worksheet: [1c]1c
Report Created: 31-12-2022 17:29:05
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.015 Seconds.
Iterations: 3 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Max)

Cell Name Original Value Final Value
$B$12 Maximize 0 11200000

Variable Cells
Cell Name Original Value Final Value Integer
$C$8 Solution X1 0 1900 Contin
$D$8 Solution X2 0 1100 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$L$16 <= 4100 $L$16<=$F$16 Binding 0
$L$17 <= 6000 $L$17<=$F$17 Binding 0
$L$18 <= 3800 $L$18<=$F$18 Not Binding 1200
$L$19 <= 3300 $L$19<=$F$19 Not Binding 1200

Microsoft Excel 16.0 Sensitivity Report

Worksheet: [1c]1c
Report Created: 31-12-2022 17:29:05

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$C$8 Solution X1 1900 0 3000 2000 500
$D$8 Solution X2 1100 0 5000 1000 2000

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$L$16 <= 4100 2000 4100 400 600
$L$17 <= 6000 500 6000 600 800
$L$18 <= 3800 0 5000 1E+030 1200
$L$19 <= 3300 0 4500 1E+030 1200
2000
1000