Nikolaos KapetaniosIE 416HW 2Parisay’s comments are in red.Problem 5 Page 98Problem summary by Patrick:Product Sale PriceLabor perhrUnits Req.# of UnitsProducedfor SaleA $10 1 - ASB $56 2 2A BSC $100 3 1B C< 40For problem summary I presented a graph instead of a table in class. Use any summary tool that you feel comfortable with.Here this specific company has the dilemma of figuring out how many units toproduce to be sold and how many to produce to be used to make other units. For thisreason the following decision variable were formulated separating the special units thatare to be used in production of other units. Let:A= Units of A that are producedAS= Units of A that are soldB= Units of B that are producedBS= Units of B that are soldC= Units of C that are produced and soldThe company would like to maximize the following O.F. which is RevenueZ = 10AS + 56BS + 100C {Max}S.T:A + 2B + 3C ≤ 40 {Time constraint in hours}1A = AS + 2B {every unit of B produced requires 2 units of A}B = BS + 1C {every unit of C produced requires 1 unit of B}All variables ≥ 0With the above formulation complete the data can be entered into WinQSB to achieve anoptimal and feasible solution that will maximize company revenue. Revenue is soughtafter because there was no information in the problem statement as to the cost ofproduction so profit could not be calculated.Solution by Mr. Yi below:Input:2Output:Report to Management:Based on the information that we have, it has been determined that we will be maximize the revenue of our company by selling the 5.71 units of product C. By selling 5.71 units of product C, we will be able to obtain $571.43 in revenue. In the order to make 5.71 units of product C, we will first need to make 11.43 units of product A and 5.71 units of product B. None of products A or B will be sold.Sensitivity analysis by Mr. Hartonoa) Use WinQSB software to perform sensitivity analysis. Print one sensitivity graph for each of the following cases. For each case, explain your motivation and importance for selection that case. Case1: Select one basic variable of your choice.Case 2: Select one nonbasic variable of your choice. If you do not have any nonbasic variable you will skip this case.Case 3: Select one binding constraint of your choice. 3Case 4: Select one nonbinding constraint of your choice. If you do not have any nonbinding constraint you will skip this case.b) Write a report of your sensitivity graph and analysis for a hypothetical manager. Use a language understandable to most people. Do not use mathematical abbreviations. (Read the file on report writing for blending problem.)Parametric Analysis:- Case I: basic Variable: X1 (same as A up there)Variable X1 is a basic variable because it has no reduced cost and it has a solution value.Report: 4If we can increase the unit profit of product A produced from $0 to $1.33 then we can maximize further our profit from $571.4 to $586.7. We can’t reduce its unit profit anymore because it is already at $0 unit profit.- Case II: non-basic variable = X4 (same as Y1 and As up there)X4 is a non-basic variable because it has no solution value and it has a reduced cost (-4.2857). This means that in order for X4 to be a basic variable, its unit sales price must beincreased from $10 to any value more than $14.3. Report:If we can increase its unit sales price from $10 to $14.3, we can sell product A but our profit will still be $571.43. However, if we can furthermore increase its unit sales price from $14.3 to $14.7 then we can further increase our maximum profit from $571.43 to $586.7.- Case III: binding constraint = C3 (same as C4 in solution table)5C3 is a binding constraint because its Left Hand Side value is equal to its Right Hand Side value.Report:If we can increase the demand from 40 to as many demand as possible, then our company would be able to handle it and therefore have an infinite profit. However, there will still be limitation on the demand because of other factors like change in style, change in economic status, etc. On the other hand, if there’s no demand at all, then we would have Zero profit.- Case IV: non-binding constraint: NONEThe final report should put together all the pieces of information and