Stelle Office Supplies Inc. (SOSI) must fill an order for 2000 modular office dividers. Each divider consists of a frame, a set of legs, and a panel. SOSI has limited production and finishing time available and is considering the purchase of some of the components. Let x1, x2, and x3 be the number of frames, leg sets, and panels to make, and x4, x5, and x6 be the number of each to buy. The model reflects the costs to be minimized, the amount of production time, the amount of assembly time, and the need for 2000 of each component.
a) Specify the complete solution in terms of the decision variables, slacks/surpluses and the value of the objective function.
b) What will happen if SOSI management decided to buy 50 frames
instead of manufacturing?
c) How much more expensive would legs have to be to manufacture before
you would change your solution?
d) What would you be willing to pay for more production time?
e) What would happen if the amount of assembly time decreased by 2000 hours?
f) Explain clearly what you mean by dual price of -17.333 in respect of constraint number 4.
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Variables cited and discussion in attachment.