| Production Model Example: RepCo | ||||||||||||
| Inputs | ||||||||||||
| Labor Hours | Production and Sales | |||||||||||
| Product A | 1 | Units Produced | Units Used | Units Sold | ||||||||
| Product B | 2 | Product A | 20 | 20 | 0 | |||||||
| Product C | 3 | ProductB | 10 | 0 | 10 | |||||||
| Products | Product C | 0 | 0 | 0 | ||||||||
| Product A | 2 | |||||||||||
| Product B | 1 | Units of products used to make products | ||||||||||
| Product C | 0 | Product A | Product B | Product C | Total used | |||||||
| Product A | 0 | 20 | 0 | 20 | ||||||||
| Unit Selling Price | Product B | 0 | 0 | 0 | 0 | |||||||
| Product A | $8 | Product C | 0 | 0 | 0 | 0 | ||||||
| Product B | $70 | |||||||||||
| Product C | $100 | |||||||||||
| Constraints | ||||||||||||
| Produced | Used | |||||||||||
| Product A | 20 | 20 | ||||||||||
| Revenue from Sales | $700 | Prodcut B | 10 | 10 | ||||||||
| Product C | 0 | 0 | ||||||||||
| Labor Hour Constraints | Used | <= | Available | |||||||||
| 40 | <= | 40 | ||||||||||
| Sensitivity of revenue, units produced, and units used as inputs to product C selling price | ||||||||||||
| Product C selling price | A produced | B produced | C produced | A used | B used | C used | Revenue | |||||
| $E$6 | $E$7 | $E$8 | $H$6 | $H$7 | $H$8 | $C$20 | ||||||
| 100 | 20 | 10 | 0 | 20 | 0 | 0 | $700 | |||||
| 110 | 20 | 10 | 0 | 20 | 0 | 0 | $700 | |||||
| 120 | 20 | 10 | 0 | 20 | 0 | 0 | $700 | |||||
| 130 | 11.429 | 5.714 | 5.714 | 11.429 | 5.714 | 0 | $743 | |||||
| 140 | 11.429 | 5.714 | 5.714 | 11.429 | 5.714 | 0 | $800 | |||||
| 150 | 11.429 | 5.714 | 5.714 | 11.429 | 5.714 | 0 | $857 | |||||
| 160 | 11.429 | 5.714 | 5.714 | 11.429 | 5.714 | 0 | $914 | |||||
| 170 | 11.429 | 5.714 | 5.714 | 11.429 | 5.714 | 0 | $971 | |||||
| 180 | 11.429 | 5.714 | 5.714 | 11.429 | 5.714 | 0 | $1,029 | |||||
| 190 | 11.429 | 5.714 | 5.714 | 11.429 | 5.714 | 0 | $1,086 | |||||
| 200 | 11.429 | 5.714 | 5.714 | 11.429 | 5.714 | 0 | $1,143 | |||||
| Sensitivity of amount of C produced to selling price of C (along side) and labor hour availability (along top) | ||||||||||||
| $B$16 | 40 | 50 | 60 | 70 | 80 | 90 | 100 | |||||
| 100 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
| 110 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
| 120 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||
| 130 | 5.714 | 7.143 | 8.571 | 10.000 | 11.429 | 12.857 | 14.286 | |||||
| 140 | 5.714 | 7.143 | 8.571 | 10.000 | 11.429 | 12.857 | 14.286 | |||||
| 150 | 5.714 | 7.143 | 8.571 | 10.000 | 11.429 | 12.857 | 14.286 | |||||
| 160 | 5.714 | 7.143 | 8.571 | 10.000 | 11.429 | 12.857 | 14.286 | |||||
| 170 | 5.714 | 7.143 | 8.571 | 10.000 | 11.429 | 12.857 | 14.286 | |||||
| 180 | 5.714 | 7.143 | 8.571 | 10.000 | 11.429 | 12.857 | 14.286 | |||||
| 190 | 5.714 | 7.143 | 8.571 | 10.000 | 11.429 | 12.857 | 14.286 | |||||
| 200 | 5.714 | 7.143 | 8.571 | 10.000 | 11.429 | 12.857 | 14.286 | |||||