The quantity produced in duchesne and shipped to los

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Unformatted text preview: t can produce TO 301 Section 005: Northwest Newsprint, Inc Case Study Group 137: Jing Jing Wu, Xin Xu, Yusi Sang 125,500,605.10 Northwest realizes additional 3962,737.95 of profit. (Reference to Excel Sheet Question 2) Question 3 If the trucking company that handles Northwest’s Duchesne- San Francisco production increases rates from $124.83 to $129.00 per ton, the profit margin will change from 210.17 to 206. Using the sensitivity report, as the allowable decrease for this coefficient is negative infinity, the optimal solution won’t change because of this change in transportation pricing. (Reference to Excel Sheet Question 3& Sensitivity report) Question 4 If the shipping rate on the Duchesne- Los Angeles route decreases from $150.14 to $140.00 per ton, the optimal solution may change. Usin...
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This note was uploaded on 02/09/2014 for the course TO 301 taught by Professor Lauriemorgan during the Fall '13 term at University of Michigan.

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