Review Set Solution (Exam 1 F2011)

# Review Set Solution (Exam 1 F2011) - MGMT 30600 Solutions...

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MGMT 30600 Solutions to Review Problems for Exam 1 I. 1. b 2. a 3. d 4. c 5. b 6. c II. 7. d 8. d 9. d 10. c 11. c 12. d 13. a III. (a) This corresponds to increasing the RHS of the “Capacity” constraint by 10. The shadow price is 3600 for each unit of increase (10 is within the allowable increase). Total profit will increase by 10SP = 10 (3600) = \$36000. (b) This is a decrease of 10 in the RHS of “T Orders” constraint. 10 is within allowable decrease and the corresponding SP = 0, so there is no change. (c) Consider the “RE stock” constraint. The shadow price is 1400 for an allowable increase of 20. Therefore, if the price offered by the new supplier is less than \$1400, then Pluto would consider buying from this supplier. (d) The selling price for regular cars is \$15,000. For an increase of up to \$600 in the coefficient of R, the optimal solution does not change. Pluto needs to increase the price by more than \$600, that is, to a price of at least \$15,600. (e)

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Review Set Solution (Exam 1 F2011) - MGMT 30600 Solutions...

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