sensitivity - car.pdf - 21-257 Models and Methods for...

Info icon This preview shows page 1. Sign up to view the full content.

21-257 Models and Methods for Optimization Fall, 2015 A Sensitivity Analysis Example A thousand automobiles need to be produced by Tucker, Inc. in one month using their four production plants. This is a fairly normal demand for Tucker. Due to technological advances and varying workforce, the plants have varied costs for the production of each car. At each plant, they also use different materials and labor amounts. A labor contract specifies that a minimum of four hundred cars must be produced at the third plant. Here are some questions to be answered by their managemnt: 1. What is the cost of production at the moment? What are the current quantities of production? 2. If it cost only eight thousand dollars to produce a car at the second plant, how much will the solution change? For what cost range is the solution valid for the second plant? How much will the cost be for producing one vehicle? By producing one less, how much will you save? 3. How much is the union contract costing? What value would it be to reduce the car
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern