Table 10-7 The Elastic Firm Has Two Products Coming on the Market

question 22

Multiple Choice

Table 10-7
The Elastic Firm has two products coming on the market: Zigs and Zags.To make a Zig,the firm needs 10 units of product A and 15 units of product B.To make a Zag,they need 20 units of product A and 30 units of product B.There are only 2,000 units of product A and 3,200 units of product B available to the firm.The profit on a Zig is $4 and on a Zag it is $6.Management objectives in order of their priority are:
(1) Produce exactly 50 Zigs.
(2) Achieve a target profit of at least $750.
(3) Use all of the product B available.
Let X₁ = number of Zigs,X₂ = number of Zags.
d₁^- = underachievement of Zig goal
d₁⁺ = overachievement of Zig goal
d₂^- = underachievement of profit target
d₂⁺ = overachievement of profit target
d₃^- = unused product B
d₃⁺ = additional amount of product B needed
-In the goal programming problem described in Table 10-7,how is the goal of achieving a target profit of at least $750 expressed?

• A)X₁ + X₂ + d₂^- = 750
• B)X₁ + X₂ + d₂^- - d₂⁺ = 750
• C)4X₁ +6 X₂ + d₂^- = 750
• D)4X₁ + 6X₂ + d₂^- - d₂⁺ = 750
• E)X₁ + X₂ - d₂⁺ = 750

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Definitions:

Traffic Jam

A condition on roadways where vehicles are halted or slowed for reasons such as increased vehicles volume or road construction, leading to congestion.

Odds

The ratio of the probability of an event happening to the probability of it not happening, often used in gambling and statistics.

Probability

A numerical representation, ranging from 0 to 1, indicating the probability of an event's occurrence.

Explanatory Variable

An explanatory variable is a type of independent variable that is used to explain variations in the dependent variable.