Midterm2010 Key

Midterm2010 Key - BUSI 410 MIDTERM QUIZ ANSWER KEY Perfume...

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BUSI 410 – MIDTERM QUIZ ANSWER KEY Perfume Manufacturing Decision variables: B = the number of ounces of Brute perfume manufactured C = the number of ounces of Chanelle perfume manufactured R = the number of pounds of raw material used Formulation: Max 7B + 6C – 3R Subject to: R ≤ 6000 R ≤ 4000 B = 3R C = 4R B ≥ 0, C ≥ 0, R ≥ 0 Maintaining product diversity: B ≤ 2C Effect of the new constraint on the optimal objective function value: Adding a constraint can either have no effect or will make the optimal objective function value worse. Hence, in this case the addition of this constraint will either Not change the optimal objective function value, or Decrease (since we are maximizing) the optimal objective function value If we had the optimal solution to the original formulation we could check whether that solution satisfied this new constraint. If it did, the optimal objective function value would not change. If it did not, the optimal objective function value would decrease when the new constraint is added to the problem.
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Sensitivity Analysis in a Manufacturing Setting a) The optimal production plan is: Produce 25 printers, 5 typewriters, and rent 17.5 hours of unskilled labor. This will result in a contribution to profit of $2,525 b) The binding status on “Raw materials availability” means: The optimal production plan uses all 100 pounds of available raw material . c)
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This note was uploaded on 02/27/2012 for the course BUSI 407 taught by Professor Bowen during the Spring '11 term at UNC.

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Midterm2010 Key - BUSI 410 MIDTERM QUIZ ANSWER KEY Perfume...

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