#7 Sensitivity Analysis exam 1, SA

# #7 Sensitivity Analysis exam 1, SA - Title Author Problem...

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Title: BUSI 508 Exam #1 Author: Taryn Lopez Problem: #7 Sensitivity Analysis 1. If the supply of nonelectrical components changes? The supply would have to decrease by 560 before it would affect the optimal solution. Increasing  the supply of nonelectrical components will not change the optimal solution. 2. What happens if the supply of electrical components increased by 400 (to 5100)? The optimal solution would changed because electrical components are a binding constraint, so adding 400 to the supply would increase the profit by 2*400 = \$800.   3. What happens if the supply of electrical components increased by 4000 (to 8700)? The optimal solution would increase by \$2 for every unit up to 7500 electrical components. 7500 is the max allowable increase for the \$2 increase per component, after 7500 the profit would start decreasing because there would be leftover components that were purchase but not used. 4. What if we could buy an additional 400 elec. Components for \$1 more than usual?

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#7 Sensitivity Analysis exam 1, SA - Title Author Problem...

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