# Conan CPU manufactures two types of computers (desktops and laptops) using two operations. A desktop requires 2 hours of operation 1 and 1 hour of operation 2. For laptops, one unit requires 1 hour of operation 1 and 3 hours of operation 2. The revenues per unit of desktops and laptops are \$30 and \$20, respectively. The total daily processing time available for each operation is 8 hours. Sensitivity Report: Variable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease \$C\$13 desktops 3.2 0 30 10 23.33333333 \$D\$13 laptops 1.6 0 20 70 5 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease \$F\$7 operation1 8 14 8 8 5.333333333 \$F\$8 operation2 8 2 8 16 4 The optimal objective function value for this problem is \$128. Using the sensitivity report generated using Excel answer the following questions: Suppose that the capacity of operation 1 is increased to 20 hours, how will this increase affect the optimum revenue? Explain and do not find new optimal value. If the capacity of operation 1 is increased from 8 hours to 13 hours, how will this increase impact the optimum revenue? Explain and find the new optimal value. A suggestion is made to increase the capacities of operations 1 and 2 at the additional cost of \$10/hr for each operation. Is this advisable? Explain. If Conan CPU can increase the capacity of both operations, which operation should receive priority? Explain.

Conan CPU manufactures two types of computers (desktops and laptops) using two operations.

A desktop requires 2 hours of operation 1 and 1 hour of operation 2.

For laptops, one unit requires 1 hour of operation 1 and 3 hours of operation 2.

The revenues per unit of desktops and laptops are \$30 and \$20, respectively.

The total daily processing time available for each operation is 8 hours.

Sensitivity Report:

Variable Cells

Final

Reduced

Objective Allowable

Allowable

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