Use This Information to Answer the Following Questions -Use the Sensitivity Report to Answer the Following Questions:
A

question 18

Essay

Use this information to answer the following questions.
An insurance company has three secretaries,A,B,and C that each is capable of processing four different types of insurance claims.The amount of time required by each secretary to process a particular type of a claim is summarized in the following table.

On a typical week,the insurance firm has 5 type 1 claims,4 type 2 claims,2 type 3 claims,and 3 type 4 claims.Each secretary works a maximum of 40 hours per week.The office manager wants to know how many of each type of an insurance claim should be processed by each secretary to minimize the total processing time.
$\begin{array}{ccccccc}\hline \text { Cell } & \text { Name } & \begin{array}{c}\text { Final } \\\text { Value }\end{array} & \begin{array}{c}\text { Reduced } \\\text { Cost }\end{array} & \begin{array}{c}\text { Objective } \\\text { Coefficient }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \text { SC\$13 } & \text { A1 } & 5 & 0 & 2 & 1 & 1 \mathrm{E}+30 \\\hline \text { SD\$13 } & \text { A2 } & 0 & 1 & 3 & 1 \mathrm{E}+30 & 1 \\\hline\text { SE\$13 } & \text { A3 } & 0 & 1 & 2 & 1 \mathrm{E}+30 & 1 \\\hline \text { SF\$13 } & \text { A4 } & 0 & 3 & 4 & 1 \mathrm{E}+30 & 3 \\\hline \text { SC\$14 } & \text { B1 } & 0 & 2 & 4 & 1 \mathrm{E}+30 & 2 \\\hline\text { SD\$14 } & \text { B2 } & 0 & 3 & 5 & 1 \mathrm{E}+30 & 3 \\\hline \text { SE\$14 } & \text { B3 } & 0 & 2 & 3 & 1 \mathrm{E}+30 & 2 \\\hline \text { SF\$14 } & \text { B4 } & 3 & 0 & 1 & 3 & 1 \mathrm{E}+30 \\\hline\text { SC\$15 } & \text { C1 } & 0 & 1 & 3 & 1 \mathrm{E}+30 & 1 \\\hline\text { SD\$15 } & \text { C2 } & 4 & 0 & 2 & 1 & 1 \mathrm{E}+30 \\\hline\text { SE\$15 } & \text { C3 } & 2 & 0 & 1 & 1 & 1 \mathrm{E}+30 \\\hline\text { SF\$15 } & \text { C4 } & 0 & 4 & 5 & 1 \mathrm{E}+30 & 4 \\\hline\end{array}$

$$\begin{array}{l}\text { Constraints }\\\begin{array} { l l c c c c c } \hline \text { Cell } & \text { Name } & \begin{array} { c } \text { Final } \\\text { Value }\end{array} & \begin{array} { c } \text { Shadow } \\\text { Price }\end{array} & \begin{array} { c } \text { Constraint } \\\text { R.H. Side }\end{array} & \begin{array} { c } \text { Allowable } \\\text { Increase }\end{array} & \begin{array} { c } \text { Allowable } \\\text { Decrease }\end{array} \\\hline \text { \$G\$13 } & \text { A constraint } & 10 & 0 & 40 & 1 \mathrm { E } + 30 & 30 \\\hline \text { \$G\$14 } & \text { B constraint } & 3 & 0 & 40 & 1 \mathrm { E } + 30 & 37 \\\hline \text { \$G\$15 } & \text { C constraint } & 10 & 0 & 40 & 1 \mathrm { E } + 30 & 30 \\\hline \text { \$C\$16 } & \text { Claim Type 1 } & 5 & 2 & 5 & 15 & 5 \\\hline \text { \$D\$16 } & \text { Claim Type 2 } & 4 & 2 & 4 & 15 & 4 \\\hline \text { \$E\$16 } & \text { Claim Type 3 } & 2 & 1 & 2 & 30 & 2 \\\hline \text { \$F\$16 } & \text { Claim Type 4 } & 3 & 1 & 3 & 37 & 3 \\\hline\end{array}\end{array}$$
-Use the Sensitivity Report to answer the following questions:
a.Suppose that the number of type 1 claims increases to 6 and the number of type 2 claims decreases to 3.What impact would this simultaneous change have on the current optimal objective function value?
b.What is the impact on the current solution and the objective function value if secretary A takes 3 hours to process claim 1 and secretary B takes 5 hours to process claim 1?

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Definitions:

Voting Stock

Voting stock refers to shares in a company that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.

Shareholders' Meeting

A gathering of a company's shareholders held to discuss and vote on corporate matters and decisions.

Preemptive Rights

The right of shareholders to purchase additional shares in a corporation before the public, in proportion to their existing shareholdings, to maintain their ownership percentage.

Capital Stock

The total amount of shares that a corporation is authorized to issue, as stated in its articles of incorporation.