chapter 2 تحليل كمي

ntroduction to Management Science 11th Edition by Bernard
W. Taylor III Test Bank

SAMPLE
Introduction to Management Science, 11e (Taylor)
Chapter 3 Linear Programming: Computer Solution and Sensitivity Analysis
1) The shadow price for a positive decision variable is 0.
Answer: TRUE
Diff: 2 Page Ref: 90
Section Heading: Sensitivity Analysis
Keywords: shadow price, sensitivity analysis
AACSB: Analytic skills
2) The simplex method is a graphical technique used to solve all management science
problems.
Answer: FALSE
Section Heading: Computer Solution
Keywords: simplex method
3) When the right-hand sides of two constraints are both increased by one unit, the value of
the objective function will be adjusted by the sum of the constraints’ prices.
Answer: FALSE
Keywords: sensitive analysis, right-hand-side
4) Most computer linear programming packages readily accept constraints entered in fractional
form, such as X1/X3.
Answer: FALSE
Keywords: computer solution, formulation, constraint
5) Sensitivity ranges can be computed only for the right-hand sides of constraints.
Answer: FALSE
Keywords: computer solution
6) The marginal value of any scarce resource is the dollar amount one should be willing to pay
for one additional unit of that scarce resource.
Answer: TRUE
Keywords: marginal value
7) Sensitivity analysis determines how a change in a parameter affects the optimal solution.
Answer: TRUE
Keywords: sensitivity analysis
8) Because the management science model requires that parameters are known with certainty,
sensitivity analysis is not used in practical, real-world applications of linear programming.
Answer: FALSE
9) The sensitivity range for an objective function coefficient is the range of values over which
the current optimal solution point (product mix) will remain optimal.
Answer: TRUE
Keywords: sensitivity analysis, objective coefficient
10) The accepted sequence for sensitivity analysis is objective function, left-hand side, and
right-hand side.
Answer: FALSE
11) The sensitivity range for an objective function coefficient is the range of values over which
the profit does not change.
Answer: FALSE
12) The sensitivity range for a constraint quantity value is the range over which the shadow
price is valid.
Answer: TRUE
13) If we change the constraint quantity to a value outside the sensitivity range for that
constraint quantity, the shadow price will change.
Answer: TRUE
Keywords: sensitivity analysis, shadow price
14) The sensitivity range for a constraint quantity value is the range over which the optimal
values of the decision variables do not change.
Answer: FALSE
15) A change in the value of an objective function coefficient will always change the value of
the optimal solution.
Answer: FALSE
16) The terms shadow price and dual price mean the same thing.
Answer: TRUE
17) Sensitivity analysis can be used to determine the effect on the solution for changing
several parameters at once.
Answer: FALSE
18) For a profit maximization problem, if the allowable increase for a coefficient in the objective
function is infinite, then profits are unbounded.
Answer: FALSE
19) The reduced cost (shadow price) for a positive decision variable is ________.
Answer: zero
20) The sensitivity range for a ________ is the range of values over which the quantity values
can change without changing the shadow price.
Answer: constraint quantity
Keywords: computer solution, right-hand-side value
21) ________ is the analysis of the effect of parameter changes on the optimal solution.
Answer: Sensitivity analysis
22) The sensitivity range for a constraint quantity value is also the range over which the
________ is valid.
Answer: shadow price
23) The sensitivity range for a(n) ________ coefficient is the range of values over which the
current optimal solution point (product mix) will remain optimal.
Answer: objective function
Consider the following linear program, which maximizes profit for two products–regular (R) and
super (S):
MAX 50R + 75S
s.t.
1.2 R + 1.6 S ≤ 600 assembly (hours)
0.8 R + 0.5 S ≤ 300 paint (hours)
.16 R + 0.4 S ≤ 100 inspection (hours)
Sensitivity Report:
Final Reduc Objectiv Allowa Allowa

ed e ble ble
Cel Name Valu Cost Coeffici Increas Decrea

l e ent e se
$B$ Regula 291. 0.00 50 70 20

7 r= 67
$C Super 133. 0.00 75 50 43.75

$7 = 33
Final Shado Constrai Allowa Allowa

w nt ble ble
Cel Name Valu Price R.H. Increas Decrea

l e Side e se
$E$ Assem 563. 0.00 600 1E+30 36.67

3 bly 33
(hr/unit)
$E$ Paint 300. 33.33 300 39.29 175

4 (hr/unit) 00
$E$ Inspect 100. 145.83 100 12.94 40

5 (hr/unit) 00
24) The optimal number of regular products to produce is ________, and the optimal number
of super products to produce is ________, for total profits of ________.
Answer: 291.67, 133.33, $24,583
25) If the company wanted to increase the available hours for one of their constraints
(assembly, painting, or inspection) by two hours, they should increase ________.
Answer: inspection
Keywords: computer solution, sensitivity analysis
26) The profit on the super product could increase by ________ without affecting the product
mix.
Answer: $50
27) If downtime reduced the available capacity for painting by 40 hours (from 300 to 260
hours), profits would be reduced by ________.
Answer: $1,333
28) A change in the market has increased the profit on the super product by $5. Total profit will
increase by ________.
Answer: $667
Taco Loco is considering a new addition to their menu. They have test marketed a number of
possibilities and narrowed them down to three new products, X, Y, and Z. Each of these
products is made from a different combination of beef, beans, and cheese, and each product
has a price point. Taco Loco feels they can sell an X for $17, a Y for $13, and a Z for $14. The
company’s management science consultant formulates the following linear programming
model for company management.
Max R = 14Z + 13Y + 17X
subject to:
Beef 2Z + 3Y + 4X ≤ 28
Cheese 9Z + 8Y + 11X ≤ 80
Beans 4Z + 4Y + 2X ≤ 68
X,Y,Z ≥ 0
The sensitivity report from the computer model reads as follows:
29) Taco Loco should try to purchase additional ________, but should not buy more
________.
Answer: beef and cheese, beans
30) Taco Loco should produce both ________ but should not make any ________.
Answer: Z and Y, X
Keywords: computer solution, spreadsheets
31) Taco Loco will make the same quantity of X, Y, and Z if the amount of cheese at their
disposal is between ________ pounds and ________ pounds.
Answer: 74.67, 126
Keywords: sensitivity analysis, right-hand-side value
32) For humanitarian reasons, Taco Loco decides they would rather make product X than
product Y. The dollar amount that they can both increase the price of Y and reduce the price of
X by to accomplish this reversal of demand is ________.
Answer: 82 cents (81.8 cents)
Keywords: sensitivity analysis, parameter changes
33) If Taco Loco reduces the price of the X product by about 82 cents, then their optimal
product mix will contain ________ X.
Answer: 0 units (none)
Keywords: reduced cost
Tracksaws, Inc. makes tractors and lawn mowers. The firm makes a profit of $30 on each
tractor and $30 on each lawn mower, and they sell all they can produce. The time
requirements in the machine shop, fabrication, and tractor assembly are given in the table.
Formulation:
Let x = number of tractors produced per period
y = number of lawn mowers produced per period
MAX 30x + 30y
subject to 2x + y ≤ 60
2x + 3y ≤ 120
x ≤ 45
The graphical solution is shown below.
34) How many tractors and saws should be produced to maximize profit, and how much profit
will they make?
Answer: 15 tractors and 30 saws for $1350 in profit
Keywords: graphical solution, simultaneous solution
35) Determine the sensitivity range for the profit for tractors.
Answer: 20 ≤ x ≤ 60
Keywords: graphical solution, sensitivity analysis
36) What is the shadow price for assembly?
Answer: 0
Diff: 1 Page Ref: 86-90
37) What is the shadow price for fabrication?
Answer: $7.50
38) What is the maximum amount a manager would be willing to pay for one additional hour of
machining time?
Answer: $1357.50 – $1350 = $7.50
Section Heading: Sensitivity Analysis and Graphical Solution
39) A breakdown in fabrication causes the available hours to drop from 120 to 90 hours. How
will this impact the optimal number of tractors and mowers produced?
Answer: x = 22.5, y = 15, Z = 1125, so profits will fall by $1350 – $1125 = $225. Students may
also answer the question by determining the sensitivity range, which is from 60 to 180 hours,
resulting in a profit change of 30 × $7.5 = $225.
40) What is the range for the shadow price for assembly?
Answer: allowable decrease = 45 – 15 = 30, and allowable increase is ∞.
The production manager for the Whoppy soft drink company is considering the production of
two kinds of soft drinks: regular (R) and diet (D). The company operates one 8-hour shift per
day. Therefore, the production time is 480 minutes per day. During the production process,
one of the main ingredients, syrup, is limited to maximum production capacity of 675 gallons
per day. Production of a regular case requires 2 minutes and 5 gallons of syrup, while
production of a diet case needs 4 minutes and 3 gallons of syrup. Profits for regular soft drink
are $3.00 per case and profits for diet soft drink are $2.00 per case.
The formulation for this problem is given below.
MAX Z = $3R + $2D
s.t.
2R + 4D ≤ 480
5R + 3D ≤ 675
The sensitivity report is given below.
Adjustable Cells
Fin Reduc Objectiv Allowa Allowa

al ed e ble ble
Cel Name Val Cost Coeffici Increas Decrea

l ue ent e se
$B$ 90.0 0.00 3 0.33 2

6 Regul 0
ar =
$C 75.0 0.00 2 4 0.2
$6 Diet = 0
Constraints
Final Shad Constra Allowa Allowa

ow int ble ble
Cel Name Valu Price R.H. Increas Decrea

l e Side e se
$E 480. 0.07 480 420 210

$3 Productio 00
n
(minutes)
$E Syrup 675. 0.57 675 525 315

$4 (gallons) 00
41) What is the optimal daily profit?

Answer: $420
42) How many cases of regular and how many cases of diet soft drink should Whoppy
produce to maximize daily profit?
Answer: 90 cases of regular and 75 cases of diet
43) What is the sensitivity range for the per-case profit of a diet soft drink?
Answer: 1.8 ≤ c2 ≤ 6.0
Keywords: sensitivity analysis, objective coefficients
44) What is the sensitivity range of the production time?
Answer: 270 ≤ b1 ≤ 900
45) if the company decides to increase the amount of syrup it uses during production of these
soft drinks to 990 lbs. will the current product mix change? If show what is the impact on profit?
Answer: Yes, the product mix will change.
Increase in profit = 0.57(990 – 675) = $180
Section Heading: Sensitivity Analysis and Computer Solution
Mallory Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each
big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf
costs $300 and requires 90 cubic feet of storage space. The company has $75,000 to invest in
shelves this week, and the warehouse has 18,000 cubic feet available for storage. Profit for
each big shelf is $300 and for each medium shelf is $150. Graphically solve this problem and
answer the following questions.
46) What is the optimal product mix and maximum profit?
Answer: 150 big shelves and no medium shelves. Profit = $45,000
Keywords: formulation, objective function
47) Determine the sensitivity range for the profit on the big shelf.
Answer: The range is from $250 to infinity.
48) If Mallory Furniture is able to increase the profit per medium shelf to $200, would the
company purchase medium shelves? If so, what would be the new product mix and the total
profit?
Answer: Yes. Big = 90, Medium = 100, Z = $47,000
The linear programming problem whose output follows is used to determine how many bottles
of red nail polish (x1), blue nail polish (x2), green nail polish (x3), and pink nail polish (x4) a
beauty salon should stock. The objective function measures profit; it is assumed that every
piece stocked will be sold. Constraint 1 measures display space in units, constraint 2
measures time to set up the display in minutes. Note that green nail polish does not require
any time to prepare its display. Constraints 3 and 4 are marketing restrictions. Constraint 3
indicates that the maximum demand for red and green polish is 25 bottles, while constraint 4
specifies that the minimum demand for blue, green, and pink nail polish bottles combined is at
least 50 bottles.
MAX 100x1 + 120x2 + 150x3 + 125x4
Subject to 1. x1 + 2x2 + 2x3 + 2x4 ≤108
2. 3x1 + 5x2 + x4 ≤ 120
3. x1 + x3 ≤ 25
4. x2 + x3 + x4 ≥ 50
x1, x2 , x3, x4 ≥ 0
Optimal Solution:
Objective Function Value = 7475.000
Variable Value Reduced

Costs
x1 8 0
x2 0 5
x3 17 0
x4 33 0
Objective Coefficient Ranges
Variable Lower Current Upper

Limit Value Limit
x1 87.5 100 none
x2 none 120 125
x3 125 150 162

x4 120 125 150
Right Hand Side Ranges

49) How much space will be left unused? How many minutes of idle time remain for setting up
the display?
Answer: 0, 63
50) a) To what value can the per bottle profit on red nail polish drop before the solution
(product mix) would change?
b) By how much can the per bottle profit on green nail polish increase before the solution
(product mix) would change?
Answer: a) 87.5 b) 12
51) a) By how much can the amount of space decrease before there is a change in the profit?
b) By how much can the amount of space decrease before there is a change in the product
mix?
c) By how much can the amount of time available to set up the display can increase before the
solution (product mix) would change?
d) What is the lowest value for the amount of time available to set up the display increase
before the solution (product mix) would change?
Answer: a) 0 b) 8 c) 0 d) 57
52) You are offered the chance to obtain more space. The offer is for 15 units and the total
price is $1500. What should you do? Why?
Answer: Reject the offer. (11 × 15) = 1125 < 1500
53) Max Z = 5x1 + 3x2
Subject to: 6x1 + 2x2 ≤ 18
15x1 + 20x2 ≤ 60
x1, x2 ≥ 0
Determine the sensitivity range for each constraint.
Answer:
constraint 1: 6 – 24
constraint 2: 45 – 180
Keywords: sensitivity analysis, sensitivity range for right hand sides
54) Max Z = 5x1 + 3x2
15x1 + 20x2 ≤ 60
x1, x2 ≥ 0
Determine the sensitivity range for each objective function coefficient.
Answer: x1: 2.25 – 9.0, x2: 1.667 – 6.667
Keywords: sensitivity analysis/range for objective function coefficients
55) Max Z = 3x1 + 3x2
25x1 + 50x2 ≤ 200
x1, x2 ≥ 0
Determine the sensitivity range for each objective function coefficient.
Answer: x1: 1.5 – 7.5, x2: 1.2 – 6.0
56) For a maximization problem, assume that a constraint is binding. If the original amount of a
resource is 4 lbs. and the range of feasibility (sensitivity range) for this constraint is from 3 lbs.
to 6 lbs., increasing the amount of this resource by 1 lb. will result in the
A) same product mix, different total profit.
B) different product mix, same total profit as before.
C) same product mix, same total profit.
D) different product mix, different total profit.
Answer: A
57) A plant manager is attempting to determine the production schedule of various products to
maximize profit. Assume that a machine hour constraint is binding. If the original amount of
machine hours available is 200 minutes., and the range of feasibility is from 130 minutes to
300 minutes, providing two additional machine hours will result in
A) the same product mix, different total profit.
B) a different product mix, same total profit as before.
C) the same product mix, same total profit.
D) a different product mix, different total profit.
Answer: D
The production manager for Beer etc. produces two kinds of beer: light (L) and dark (D). Two
resources used to produce beer are malt and wheat. The manager can obtain at most 4800 oz
of malt per week and at most 3200 oz of wheat per week, respectively. Each bottle of light beer
requires 12 oz of malt and 4 oz of wheat, while a bottle of dark beer uses 8 oz of malt and 8 oz
of wheat. Profits for light beer are $2 per bottle, and profits for dark beer are $1 per bottle.
58) If the production manager decides to produce of 400 bottles of light beer and 0 bottles of
dark beer, it will result in slack of
A) malt only.
B) wheat only.
C) both malt and wheat.
D) neither malt nor wheat.
Answer: B
Keywords: graphical solution, constraints
59) Which of the following is not a feasible solution?
A) 0 L and 0 D
B) 0 L and 400 D
C) 200 L and 300 D
D) 300 L and 200 D
Answer: D
Keywords: computer solution, infeasibility
60) What is the optimal weekly profit?
A) $1000
B) $900
C) $800
D) $700
Answer: C
Mallory Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each
big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf
costs $300 and requires 90 cubic feet of storage space. The company has $75,000 to invest in
shelves this week, and the warehouse has 18,000 cubic feet available for storage. Profit for
each big shelf is $300 and for each medium shelf is $150.
61) Which of the following is not a feasible purchase combination?
A) 0 big shelves and 200 medium shelves
B) 0 big shelves and 0 medium shelves
C) 150 big shelves and 0 medium shelves
D) 100 big shelves and 100 medium shelves
Answer: D
Keywords: computer solution, infeasibility
62) If the Mallory Furniture company decides to purchase 150 big shelves and no medium
shelves, which of the two resources will be left over?
A) investment money only
B) storage space only
C) investment money and storage space
D) neither investment money nor storage space
Answer: B
Keywords: computer solution, slack
The production manager for the Whoppy soft drink company is considering the production of
two kinds of soft drinks: regular and diet. The company operates one 8-hour shift per day.
Therefore, the production time is 480 minutes per day. During the production process, one of
the main ingredients, syrup, is limited to maximum production capacity of 675 gallons per day.
Production of a regular case requires 2 minutes and 5 gallons of syrup, while production of a
diet case needs 4 minutes and 3 gallons of syrup. Profits for regular soft drink are $3.00 per
case and profits for diet soft drink are $2.00 per case.
63) Which of the following is not a feasible production combination?
A) 90 R and 75 D
B) 135 R and 0 D
C) 75 R and 90 D
D) 50 R and 50 D
Answer: C
Keywords: graphical solution, feasibility
64) For the production combination of 135 regular cases and 0 diet cases, which resource is
completely used up (at capacity)?
A) only time
B) only syrup
C) time and syrup
D) neither time nor syrup
Answer: B
Keywords: graphical solution, slack variables
65) The sensitivity range for the profit on a regular case of soda is
A) $2 to $3.
B) $2 to $4.
C) $1 to $3.
D) $1 to $3.33.
Answer: D
66) Which of the following could not be a linear programming problem constraint?
A) A + B ≤ -3
B) A – B ≤ -3
C) A – B ≤ 3
D) -A + B ≤ -3
Answer: A
Keywords: graphical solution, feasibility
67) Use the constraints given below and determine which of the following points is feasible.
(1) 14x + 6y ≤ 42
(2) x – y ≤ 3
A) x = 1; y = 4
B) x = 2; y = 8
C) x = 2; y = 4
D) x = 3; y = 0.5
Answer: A
Keywords: constraints
68) For the constraints given below, which point is in the feasible region of this minimization
problem?
(1) 14x + 6y ≤ 42
(2) x + 3y ≥ 6
A) x = 2; y = 5
B) x = 1; y = 2
C) x = 2; y = 1
D) x = 2; y = 3
Answer: B
Keywords: constraints
69) What combination of x and y is a feasible solution that minimizes the value of the objective
function?
Min Z = 3x + 15y
(1) 2x + 4y ≥ 12
(2) 5x + 2y ≥10
A) x = 0; y = 3
B) x = 0; y = 5
C) x = 5; y = 0
D) x = 6; y = 0
Answer: C
Keywords: feasibility, constraints
70) A shadow price reflects which of the following in a maximization problem?
A) the marginal gain in the objective that would be realized by adding one unit of a resource
B) the marginal gain in the objective that would be realized by subtracting one unit of a
resource
C) the marginal cost of adding additional resources
D) the marginal gain of selling one more unit
Answer: A
71) Given the following linear programming problem:
Max Z = 15x + 20y
s.t.
8x + 5y ≤ 40
4x + y ≥ 4
What would be the values of x and y that will maximize revenue?
A) x = 5; y = 0
B) x = 0; y = 8
C) x = 0; y = 1
D) x = 1; y = 0
Answer: B
Keywords: formulation, solution
72) Given the following linear program that maximizes revenue:
Max Z = 15x + 20y
s.t.
8x + 5y ≤ 40
4x + y ≥ 4
What is the maximum revenue at the optimal solution?
A) $120
B) $160
C) $185
D) $200
Answer: B
Section Heading: Computer Solution of a Transportation Problem
Given the following linear programming problem that minimizes cost:
Min Z = 2x + 8y
Subject to (1) 8x + 4y ≥ 64
(2) 2x + 4y ≥ 32
(3) y ≥ 2
73) Determine the optimum values for x and y.
A) x = 2; y = 6
B) x = 6; y = 2
C) x = 12; y = 2
D) x = 6; y = 5
Answer: C
74) At the optimal solution, the minimum cost is:
A) $40
B) $50
C) $52
D) $53.33
Answer: A
75) What is the sensitivity range for the cost of x?
A) 0 to 2
B) 4 to 6
C) 2 to 4
D) 0 to 4
Answer: D
76) What is the sensitivity range for the third constraint, y ≥ 2?
A) 0 to 4
B) 2 to 5.33
C) 0 to 5.33
D) 4 to 6.33
Answer: C
Keywords: sensitivity analysis, quantity ranges for constraints
77) For a maximization problem, the shadow price measures the ________ in the value of the
optimal solution, per unit increase for a given ________.
A) decrease, resource
B) increase, parameter
C) improvement, resource
D) decrease, parameter
Answer: C
78) Sensitivity analysis is the analysis of the effect of ________ changes on the ________.
A) price, company
B) cost, production
C) parameter, optimal solution
D) constraint, parameter
Answer: C
79) For a linear programming problem, assume that a given resource has not been fully
used. We can conclude that the shadow price associated with that constraint
A) will have a positive value.
B) will have a negative value.
C) will have a value of zero.
D) could have a positive, negative or a value of zero. (no sign restrictions).
Answer: C
80) For a resource constraint, either its slack value must be ________ or its shadow price
must be ________.
A) negative, negative
B) negative, zero
C) zero, zero
D) zero, negative
Answer: C
Aunt Anastasia operates a small business: she produces seasonal ceramic objects to sell to
tourists. For the spring, she is planning to make baskets, eggs, and rabbits. Based on your
discussion with your aunt you construct the following table:
Your aunt also has committed to make 25 rabbits for a charitable organization. Based on the
information in the table, you formulate the problem as a linear program.
B = number of baskets produced
E = number of eggs produced
R = number of rabbits produced
MAX 2.5B + 1.5E + 2R
s.t.
0.5B + 0.333E + 0.25R ≤ 20
B + E + R ≤ 50
0.25B + 0.333E + 0.75R ≤ 80
R ≥ 25
The Excel solution and the answer and sensitivity report are shown below.
The Answer Report:
The Sensitivity Report:
81) Which additional resources would you recommend that Aunt Anastasia try to obtain?
A) mix/mold
B) kiln
C) paint and seal
D) demand
Answer: B
82) Suppose the charitable organization contacted Aunt Anastasia and told her that they had
underestimated the amount of rabbits they needed. Instead of 25 rabbits, they need 35. How
would this affect Aunt Anastasia’s profits?
A) Profits would increase by $5.
B) Profits would decrease by $5
C) Profits would increase by $2.50
D) Profits would decrease by $2.50
Answer: B
83) Aunt Anastasia feels that her prices are too low, particularly for her eggs. How much would
her profit have to increase on the eggs before it is profitable for her to make and sell eggs?
A) $0.50
B) $1.00
C) $1.50
D) $2.50
Answer: B
84) Aunt Anastasia’s available hours for paint and seal have fallen from 80 hours to 60 hours
because of other commitments. How will this affect her profits?
A) Profits will increase by $30.
B) Profits will decrease by $20.
C) Profits will increase by $20.
D) Profits will not change
Answer: D
85) Aunt Anastasia can obtain an additional 10 hours of kiln capacity free of charge from a
friend. If she did this, how would her profits be affected?
A) Profit would increase by $25.
B) Profits would decrease by $25.
C) Profits would decrease by $6.25.
D) Cannot tell from the information provided.
Answer: D
86) Aunt Anastasia is planning for next spring, and she is considering making only two
products. Based on the results from the linear program, which two products would you
recommend that she make?
A) baskets and eggs
B) baskets and rabbits
C) eggs and rabbits
D) She should continue to make all three.
Answer: B
Billy’s Blues sells 3 types of T-shirts: Astro, Bling, and Curious. Manufacturing Astros requires
2 minutes of machine time and 20 minutes of labor, and costs $10. Brand Bling requires 2.5
minutes of machine time and 30 minutes of labor, and costs $14 to produce. Brand Curious
requires 3 minutes of machine time and 45 minutes of labor, and costs $18 to produce. There
are 300 machining hours available per week, 3750 labor hours, and he has a budget of
$3000. Brand Astro sells for $15, Brand Bling for $18, and Brand Curious for $25.
The LP formulation that maximizes week profit shown below.
MAX 15A +18B + 25 C
s.t.
2A + 2.5B + 3C ≤ 300
20A + 30B + 45C ≤ 3750
10A + 14B + 18C ≤ 3000
The solution from QM for Windows is show below.
87) If Billy could acquire more of any resource, which would it be?
A) machining time
B) labor time
C) money
D) buyers
Answer: A
88) If one of Billy’s machines breaks down, it usually results in about 6 hours of
downtime. When this happens, Billy’s profits are reduced by:
A) $15
B) 18
C) $25
D) $35
Answer: D
Section Heading: Linear Programming Models
89) Billy’s accountant made an error, and the budget has been reduced from $3000 to
$2500. Billy’s profit will go down by:
A) $0
B) $625
C) $1350
D) $1650
Answer: A
90) Billy has decided that he can raise the price on the Curious t-shirt by 10% without losing
sales. If he raises the price, his profits will
A) increase by 10%.
B) decrease by 10%.
C) increase by $2.50.
D) increase by $125.
Answer: D
Taco Loco is considering a new addition to their menu. They have test marketed a number of
possibilities and narrowed them down to three new products, X, Y, and Z. Each of these
products is made from a different combination of beef, beans, and cheese, and each product
has a price point. Taco Loco feels they can sell an X for $17, a Y for $13, and a Z for $14. The
company’s management science consultant formulates the following linear programming
model for company management.
Max R = 14Z + 13Y + 17X
subject to:
Beef 2Z + 3Y + 4X ≤ 28
Cheese 9Z + 8Y + 11X ≤ 80
Beans 4Z + 4Y + 2X ≤ 68
X,Y,Z ≥ 0
The sensitivity report from the computer model reads as follows:
91) The local cheese vendor offers to sell Taco Loco 200 pounds of cheese for these three
products. Taco Loco should
A) refuse to buy any cheese.
B) buy less than 80 pounds of cheese for $1.45 per pound.
C) buy 46 pounds or less of cheese for $1.45 or less.
D) buy at least 126 pounds of cheese for $5.33 or less.
Answer: C
Keywords: shadow price, computer solution
92) The optimal quantity of the three products and resulting revenue for Taco Loco is:
A) 28 beef, 80 cheese, and 39.27 beans for $147.27
B) 10.22 beef, 5.33 cheese, and 28.73 beans for $147.27
C) 1.45 Z, 8.36 Y, and 0 Z for $129.09
D) 14 Z, 13 Y, and 17 X for $9.81
Answer: C
Keywords: computer solution, spreadsheets
93) Taco Loco is unsure whether the amount of beef that their computer thinks is in inventory
is correct. What is the range in values for beef inventory that would not affect the optimal
product mix?
A) 26 to 38.22 pounds
B) 27.55 to 28.45 pounds
C) 17.78 to 30 pounds
D) 12.22 to 28 pounds
Answer: C
94) How many pounds of beans will Taco Loco have left over if they produce the optimal
quantity of products X, Y, and Z?
A) 28.73
B) 39.27
C) 0
D) 1E+30
Answer: A
95) What is the increase in revenue if Taco Loco purchases 20 pounds of cheese for $1 and
uses it optimally?
A) $0
B) $9.09
C) $29.00
D) $158.18
Answer: C

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ntroduction to Management Science 11th Edition by Bernard

W. Taylor III Test Bank

Final Reduc Objectiv Allowa Allowa

Cel Name Valu Cost Coeffici Increas Decrea

$B$ Regula 291. 0.00 50 70 20

$C Super 133. 0.00 75 50 43.75

Final Shado Constrai Allowa Allowa

Cel Name Valu Price R.H. Increas Decrea

$E$ Assem 563. 0.00 600 1E+30 36.67

$E$ Paint 300. 33.33 300 39.29 175

$E$ Inspect 100. 145.83 100 12.94 40

Fin Reduc Objectiv Allowa Allowa

Cel Name Val Cost Coeffici Increas Decrea

$B$ 90.0 0.00 3 0.33 2

Final Shad Constra Allowa Allowa

Cel Name Valu Price R.H. Increas Decrea

$E 480. 0.07 480 420 210

$E Syrup 675. 0.57 675 525 315

41) What is the optimal daily profit?

Variable Value Reduced

Objective Coefficient Ranges

Variable Lower Current Upper

x1 87.5 100 none

x2 none 120 125

x3 125 150 162

Right Hand Side Ranges

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