NorthwestCaseStudy_Writeup_JingJingWu_YusiSang_XuXin

54 which is greater than the shadow price of the

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Unformatted text preview: g the sensitivity report, the allowable decrease for this coefficient is 2.68, so as this decrease exceeds the allowable decrease, we need to rerun the solver to come up with the new optimal solution. The quantity produced in Duchesne and shipped to Los Angeles increased from 100,041 to 114,841 tons, but the optimal quantity produced in Naomee Mills and shipped to Los Angeles decreased from 111,800 to 97,000 tons.. In addition, the overall profit increased from $125,500,605.10 to $126,625,427.77 after the change of shipping cost. (Reference to Excel Sheet Question 4 and Sensitivity Report) Question 5 The optimal solution does not change. Based on the solver sensitivity report, the shadow price for the min...
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