Should firm purchase additional units of cooling coils


Problem:

Sensitivity Report Information given:

Constraints:

Name                Final Value      Shadow Price    Constraint R.D side    Allow Increase   Allow Decrease

Cooling Coils       320                 18                     320                        37.5                 110

Required:

Question 1) The firm has an option to purchase additional 30 units of cooling coils at a total cost od $570. Should the firm purchase the additional units of cooling coils? Explain.

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Operation Management: Should firm purchase additional units of cooling coils
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