SENSITIVITY REPORT FOR WYNDOR

1. Using Excel Solver

2. Using Ranging ( QM for Windows)

3. Explain
- Allowable increase: It is the amount by which you can increase in the coefficient of the
objective function (unit profit) without changing the final value ( unit produce)
*For example: According to the sensitive report, the unit profit of doors can increase from
300$ -->300$ + 450$ = 750$ dollars without changing the final value

- Allowable decrease:It is the amount by which you can decrease in the coefficient of the
objective function (unit profit) that can be made without changing the final value ( unit
produce)
*For example: According to the sensitive report, the unit profit of doors can decrese from 300$
--> 300$ -$300 = 0 $ dollars without changing the final value

- Upper bounds: is the allowable increase

- Lower bounds: is the allowable decrease

- Reduced cost: The reduced cost measures the change in the objective function’s value per
unit increase in the variable’s value. If the optimal values of a variable is positive ( not zero),
then the reduced cost is always zero and vice versa

- Shadow price: The shadow prices measures the change in the objective function’s value
per unit increase in the constraint’s bound. If we change ( either increase or decrease) one
unit in the constraint R.H Sides according to the allowable range, the objective function will
consequently increase a specific amount ( shadow price)
- For example:

- Calculate the allowable range for Plant 2 constrant:

+ Allowable increase: 12+6=18
+ Allowable decrease: 12-6=6
==> Allowable range ( 6,18)
- Supposed we decide to increase 1 unit in the Constrant R.H side ( from 12--> 12+1=13) .Based on the
definition given, we can tell that the objective function ( total profit) will consequently increase $150
(shadow price) as 3600$ + 150$ =3750$