QNT 5160 Team Optimization Project

Part A. Optimal Solution (4 points) MIKAYLA. Complete and analyze the model in the first Excel Tab titled Optimal Solution:
· Use Excel to calculate Unit Profit for each product (in cells B8:I8) and Total Profit (in cell B19).
o Using the data in the reduced cost column, in the top portion of the sensitivity report, what factors could lead to even better levels of performance? Stacey

Part C. Outsourcing Option (3 points). STACEY A third-party company approached Hawley’s management offering to assemble and test pendant lights for $27 per unit.
· Use Excel to calculate Unit Profit for each product (in cells B8:J8) and Total Profit (in cell B19). Assume an advertising budget with a $18,000 limit – you do not need to redistribute the advertising budget for this part.
· Run Excel Solver for this Tab to estimate the optimal production plan and create another sensitivity report. Analyze the tactical and strategic information provided by the optimal solution.
Should the Hawley’s management consider the offer? If yes, how much of pendant light units should be outsourced and how many units should be produced in-house.