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

question 37

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,what is the optimal solution?

• A)X₁ = 75 + X₂ = 91.67
• B)X₁ = 91.67 + X₂ = 50
• C)X₁ = 50 + X₂ = 75
• D)X₁ = 50 + X₂ = 91.67
• E)X₁ = 75 + X₂ = 50

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Elizabeth F. Loftus, an influential cognitive psychologist, known for her extensive research on the malleability of human memory.

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