Use the Following Information to Answer the Question(s) Below -The Indicates How Much the Value of the Objective Function

question 30

Multiple Choice

Use the following information to answer the question(s) below.
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails, rivets, and clips-which are machined on two CNC machining centers. The machining centers have a capacity of 250,000 minutes per year. The gross margin per unit and machining requirements are shown in the spreadsheet below. $\begin{array}{|l|l|l|l|l|l|l|}\hline&{\text { A }} & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \\\hline& \text { Cerebro } && & & & \\1&\text { ManufacturingModel } & & & & & \\\hline 2\\\hline 3 & \text { Product } & \text { Plugs } & \text { Rails } & \text { Rivets } & \text { Clips }& \begin{array}{l}\text { Machine } \\\text { Capacity } \\\text { (mins./year) }\end{array} \\\hline 4 & \text { Gross margin/unit } & \$ 0.40 & \$ 1.20 & \$ 0.80 & \$ 1.10 & \\\hline 5 & \text { Minutes/unit } & 1 & 2 & 3 & 1.5 & 250,000 \\\hline 6 & \text { Gross margin/minute } & \\\hline 7 & \text { Maximum production } & \\\hline 8 & \text { Profit } & \\\hline\end{array}$
-The indicates how much the value of the objective function will change as the right-hand side of a constraint is increased by 1.

• A) objective coefficient
• B) shadow price
• C) binding constraint
• D) reduced cost

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Definitions:

Negative Correlations

A relationship between two variables in which one variable increases as the other decreases.

Scatter Plot

A graphical representation used to display values for typically two variables for a set of data, showing how much one variable is affected by another.

Widely Dispersed

Spread out over a large area or among a large number of people; not concentrated in one place.

Confidence Intervals

An interval of numbers, calculated from statistics of a sample, assumed to include the value of a not yet identified parameter of a population.