Using the Sensitivity Report output for the Blue Ridge Hot Tub example appearing
ID: 3224427 • Letter: U
Question
Using the Sensitivity Report output for the Blue Ridge Hot Tub example appearing below:
a. What is the range in the number of available pumps that will keep the current basis optimal assuming
the amount of labor hours and tubing feet remain constant ?
b. Blue Ridge is considering introducing a new model of hot tub called the Typhoon-Tub. Suppose
that each unit of this new model requires 1 pump, 12 hours of labor, and 13 feet of tubing. Find the
minimum marginal profit that will make this new product profitable.
Adjustable Cells
Final
Reduced
Objective
Allowable
Allowable
Cell
Name
Value
Cost
Coefficient
Increase
Decrease
$B$3
Units Aqua Spa
122
0
350
100
50
$C$3
Units Hydro-Lux
78
0
300
50
66.66666667
Constraints
Final
Shadow
Constraint
Allowable
Allowable
Cell
Name
Value
Price
R.H. Side
Increase
Decrease
$I$4
Pumps Usage
200
200
200
7
26
$I$5
Labor Usage
1566
16.66666667
1566
234
126
$I$6
Tubing Usage
2712
0
2880
1E+30
168
Adjustable Cells
Final
Reduced
Objective
Allowable
Allowable
Cell
Name
Value
Cost
Coefficient
Increase
Decrease
$B$3
Units Aqua Spa
122
0
350
100
50
$C$3
Units Hydro-Lux
78
0
300
50
66.66666667
Constraints
Final
Shadow
Constraint
Allowable
Allowable
Cell
Name
Value
Price
R.H. Side
Increase
Decrease
$I$4
Pumps Usage
200
200
200
7
26
$I$5
Labor Usage
1566
16.66666667
1566
234
126
$I$6
Tubing Usage
2712
0
2880
1E+30
168
Explanation / Answer
a ) Range = (200 - Allowable Decrease, 200+ Allowable Increase) = (200-26,200+7) = (174,207)
b) Minium price = 200*1 +12*16.667+ 13*0 = 400
A minimum price of 400 needs to be set
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