Ramjakhar please answer these questions. QUESTION 1 1 points Save Answer Conside

Question

Ramjakhar please answer these questions.

QUESTION 1 1 points Save Answer Consider the sensitivity report below for the product-mix problem which follow. 6 Variable Cells Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease Cell 9 $B$3 x1 10 SCS3 x2 6 7.333333333 40 12 Constraints 13 14 Cell 15 $D510 Extrusion Used 16 SDS11 Packaging Used 17 SDS12 Additive Used Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 4 18 12 16 1E+30 Which of the following constraints are binding? Packaging and Additive Extrusion and Packaging Packaging only Extrusion and Additive

Explanation / Answer

Answer-

Extrusion and Packing

As both carry a shadow pricing and allowable decrease/ increase, which further impacts the final value. A substantial increase or decrease in both the cases, will affect the company’s cost of goods manufactured costs.

While for Additive, it does not carry a shadow pricing and allowable increase is not well defined, hence can’t be considered as Binding constraint for the company.

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