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Blue Ridge Hot Tub Profit Analysis

The document describes a company that makes two types of hot tubs. It provides production details and constraints. An Excel solver was used to maximize total profits within the constraints. The optimal solution and sensitivity analysis are presented.

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Yiğit Tirkeş
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92 views3 pages

Blue Ridge Hot Tub Profit Analysis

The document describes a company that makes two types of hot tubs. It provides production details and constraints. An Excel solver was used to maximize total profits within the constraints. The optimal solution and sensitivity analysis are presented.

Uploaded by

Yiğit Tirkeş
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Blue Ridge Hot Tubs Company

Aqua-Spas Hydro-Luxes
Labor 9 6
Tubing 12 16
Number to make 122 78
Unit Profits 350 300
Total Profit 66100

Constraints
Pumps 200 <= 200
Labor 1566 <= 1566
Tubing 2712 <= 2880
Microsoft Excel 15.0 Answer Report
Worksheet: [Blue Ridge Hot Tub Company.xlsx]Sheet1
Report Created: 4.10.2013 13:36:12
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0,016 Seconds.
Iterations: 2 Subproblems: 0
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision "0,000001", Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 100%, Assume NonNegative

Objective Cell (Max)


Cell Name Original Value Final Value
$B$8 Total Profit Aqua-Spas 66100 66100

Variable Cells
Cell Name Original Value Final Value Integer
$B$6 Number to make Aqua-Spas 122 122 Contin
$C$6 Number to make Hydro-Luxes 78 78 Contin

Constraints
Cell Name Cell Value Formula Status Slack
$B$11 Pumps Aqua-Spas 200 $B$11<=$D$11 Binding 0
$B$12 Labor Aqua-Spas 1566 $B$12<=$D$12 Binding 0
$B$13 Tubing Aqua-Spas 2712 $B$13<=$D$13 Not Binding 168
Microsoft Excel 15.0 Sensitivity Report
Worksheet: [Blue Ridge Hot Tub Company.xlsx]Sheet1
Report Created: 4.10.2013 13:36:58

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$6 Number to make Aqua-Spas 122 0 350 100 50
$C$6 Number to make Hydro-Luxes 78 0 300 50 66.66666667

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$B$11 Pumps Aqua-Spas 200 200 200 7 26
$B$12 Labor Aqua-Spas 1566 16.66666667 1566 234 126
$B$13 Tubing Aqua-Spas 2712 0 2880 1E+030 168

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