Share
Explore BrainMass

# Using Solver to Create Sensitivity Reports

See attached file.

A furniture manufacturer produces two types of tables (country and contemporary) using three types of machines. The time required to produce the tables on each machine is: router 1.5 country, 2.0 contmeporary, 1000 hours available per week; sander 3.0 country, 4.5 contemporary, 2000 hours available per week; polisher 2.5 country, 1.5 contemporary, 1500 hours available per week. Country tables sell for \$350 and contemporary tables sell for \$450. Management has determined that at least 20% of the tables made should be country and at least 30% should be contemporary. How many of each type of table should the company produce if it wants to maximize its revenue?

Use Solver to create a sensitivity report and answer the following questions:

a. If the company could get 50 more units of routing capacity, should they do it? If so, how much should they be willing to pay for it?
b. If the company could get 50 more units of sanding capacity, should they do it? If so, how much should they be willing to pay for it?
c. Suppose the polishing time on country tables could be reduced from 2.5 to 2 units per table. How much should the company be willing to pay to achieve this improvement in efficiency?
d. Contemporary tables sell for \$450. By how much would the selling price have to decrease before we would no longer be willing to produce contemporary tables?

#### Solution Summary

The following posting uses solver to create sensitivity reports and answers various related problems.

\$2.19