wUIR aHd Tests Alaa Zoey Writing Tools, Inc. manufactures a very nice set of aff

Question

wUIR aHd Tests Alaa Zoey Writing Tools, Inc. manufactures a very nice set of affordable writting tools including ballpoint pens, mechanical pencils, and fountain pens. Manufacturing them uses a combination of plastic and stainless steel. The pens also have chrome accents. The company is deciding its production plan for the upcoming week based on the current set of materials in stock and typical demand constraints on the fountain pens and mechanical pencils. A linear program has been formulated and solved. The company is interested in maximizing the revenue from the tables. To keep the problem simpler, integer constraints were not used so the decision variable values were allowed to be decimals. Don't round the decision variables to whole numbers The actual LP formulation is not available to you, but the Answer and Sensitivity Reports are provided below Review the Answer and Sensitivity Reports and consider how they could answer the following question as fully as possible. x1 = the # of ballpoint pens, x2 = the # of mechanical pencils, and x3 the # of fountain pens . If answer cannot be explicitly determined, consider if a reasoned conclusion is possible. Treat the questions as independent of one another. A scenario posed in one question should be read as independent of a scenario posed in another question. . Select the multiple choice item that best answers the question. Answer Report Objective Cell (Max) Original Value Name Profit Obj. Fun. Final Value Cell SES8 S 2,766.67

Explanation / Answer

D. The solution mix remains optimal, we would make the same amounts of each item, total profit becomes $2416.67

Typical numerical calculations are not needed. Because, the profit of ball point pen is reduced, hence it is obvious that total profit will be reduced. Hence option C is eliminated. Further there is no need to resolve the LP as it is obvious that profit will decrease. Hence option B is eliminated. Solution mix(optimal mix) is calculated with highest possible profit, hence option A is now eliminated. Hence, 700 ball point pens and 133.33 of fountain pens is the optimal mix and profit is certainly reduced, which comes to $2416.67. Hence we are remaining with option D

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