A Manufacturer Has the Capability to Produce Both Chairs and Tables

question 71

Multiple Choice

A manufacturer has the capability to produce both chairs and tables. Both products use the same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables) . The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making process, an analyst has formulated the following linear programming model:
Max 20x1 + 65x2 - 100y1 - 200y2
s.t. 5x1 + 10x2 ? 100 {Constraint 1}
20x1 + 50x2 ? 250 {Constraint 2}
1x1 + 1.5x2 ? 10 {Constraint 3}
My1 ? x1 {Constraint 4}
My2 ? x2 {Constraint 5} $$y _ { i } = \left\{ \begin{array} { l } 1 , \text { if product } j \text { is produced } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints limit the amount of raw materials that can be consumed?

• A) Constraint 1
• B) Constraint 4
• C) Constraint 5
• D) Constraint 1 and 4 only
• E) None of these

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Definitions:

Personal Influences

The effects that the personal characteristics, beliefs, attitudes, and actions of individuals have on their own or others' thoughts, feelings, and behaviors.

Superordinate Goals

Shared goals that override differences among people and require their cooperation.

Stereotypes

Widely held but simplified and generalized beliefs about a particular group of people or type of person.

Ingroup Bias

The tendency to favor our own group.