All of the other constraints and priorities remained the same. Based on this snippet of the sensitivity report, what should happen during this production run?
William ran the original model in Excel and discovered that he was walking away from significant income. He reformulated the model with a new profit constraint of 16R + 24W + d2+ + d2- = 550.
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$14 Rotgut 10 0 0 0 0
$C$14 White Lightning 15 0 0 0 0
$D$16 Hours d1+ 0 1 1 1E+30 1
$E$16 Hours d1- 7 0 0 1 0
$D$17 Profit d2+ 30 0 0 0 0
$E$17 Profit d2- 0 0 0 1E+30 0
Answer: William should produce 10 batches of Rotgut and 15 batches of white lightning. The d2+ variable is 30, so the secondary objective of $550 profit will fall short by $30. This could also be confirmed simply by $24 × 15 + $16 × 10 = $520. The d1- variable is 7, meaning that the required time of 65 hours falls short of the 72 hours William thought he had available. This should give him plenty of time to hide the ten pounds of sugar that he has left over, load up The General, and drive to Lubbock.
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