Unexpectedly, monthly demand for the MX2 falls to 400 units. How will this chang
ID: 385679 • Letter: U
Question
Unexpectedly, monthly demand for the MX2 falls to 400 units. How will this change impact the optimal solution?
a. This change is allowed. The new objective function will increase by 2400.
b. This change is allowed. The new objective function will decrease by 2400.
c. This change is allowed. The new objective function will increase by 960.
d. This change is allowed. The new objective function will decrease by 960.
e. This change is not allowed. The problem will need to be resolved to find the new optimal solution.
a. This change is allowed. The new objective function will increase by 2400.
b. This change is allowed. The new objective function will decrease by 2400.
c. This change is allowed. The new objective function will increase by 960.
d. This change is allowed. The new objective function will decrease by 960.
e. This change is not allowed. The problem will need to be resolved to find the new optimal solution.
Hours of labour per production unit Proft M per unit (type of component) Wiring Drilling Assembly Finishing Time me Time Time (no. of units) 15000 MX1 MX3 MX4 5 Labor available 16000 18000 12000 10000 hours per month) APPENDIX (please note Dem: Demand and 1E+30 Infinity (no limit) Objective Cell (Max) Cell Name Original Value Final Value 429940 Variable Cells Integer Contin Contin Contin Contin Final Value 15884 Name Original Value $BS2 MX MX3 MX4 SE$2 Constraints Slack Cell Name Cell Value Formula Status Binding $F$10 $H$10 $F$11 $H$11 Not Binding 336 SF$12>-$H$12 Binding $F$10 Dem (MX2) F$11 Dem (MX3) F$12 Dem (MX4) SF$5 $F$6 Drilling $F$7 SF$8 SF$9 Dem (MX1) SF$5 $H$5 Binding SF$6 SH$6 Not Binding 2515.6 SF$7$H$7 Not Binding 3137.2 Wiring 15484.4 8862.8 10000 15884 Assembly Finishing Binding F$9 $H$9 Not Binding 884 Variable Cells Final Reduced Objective Allowable Allowable Cell SB$2 $C$2 $D$2 SE$2 Constraints 15884 15 1.35 MX1 MX2 0 2136 35 1E+30 MX4 Final Shadow Constraint Allowable Allowable CellName Value Price R.H. Side Increase Decrease $F$10 Dem (MX2) 5009.6 566.7 336 850 2210 1E+30 1E+30 3137 1800 1E+3 $F$12 Dem (MX4) 900 $F$5 Wiring16000 SFS6 Drilling 15484 $F$7 Assembly8863 18000 12000 10000 15000 2515.6 368.3 E+30 $F$8 Finishing 10000 34 884 SF$9 Dem (MX1) 158840Explanation / Answer
The correct answer is option D, i.e., the new objective function will decrease by 960.
The shadow price for the demand of MX2 product is -9.6. The allowable decrease for the right-hand side of the of the constraint is 500. If the monthly demand for the MX2 falls to 400 units, it would remain within the allowable decrease limits.
The value of the objective function will thus decrease by-
= Shadow price * Decrease in demand
= -9.6 * 100
= -960
Hence option D is correct.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.