Captain Stubing runs the LP model associated with the scenario and reads the following about the variable cells in the Excel sensitivity report. Provide an interpretation
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$2 Bar 12 0 1500 1560 1E+30
$C$2 Food 12 0 5000 1660 1E+30
$D$2 Excursion 24.24 0 17000 1E+30 3458.33333
Answer: There should be 12 different bar setups and cuisine types and 24.24 excursions. The Bar decision variable has an allowable increase of $1,560, so if the profit on a bar setup increased by that amount over the current value, i.e., all the way up to $3,060, the bar setups would remain the same at 12. The food types can increase by up to $1,660 per type, or up to $6,660 while remaining at 12 as the best number. Excursion profit can drop by up to $3,458 from the current value of $17,000 without changing from the recommended 24.24 value. The actual profit earned would of course change if these parameters stayed within their allowable increases and decreases, but the number of food, bar, and excursion types would remain at 12, 12 and 24 (and some change).
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