Variable Cells Constraints If the Coefficients of Activity 1 and Activity 2 in |

question 28

Multiple Choice

Variable cells
$$\begin{array} { | r | r | r | r | r | r | r | } \hline \text { Cell } & \text { Name } & \begin{array} { c } \text { Final } \\\text { Value }\end{array} & \begin{array} { c } \text { Reduced } \\\text { Cost }\end{array} & \begin{array} { c } \text { Objective } \\\text { Codficient }\end{array} & \begin{array} { c } \text { Allowable } \\\text { Increase }\end{array} & \begin{array} { c } \text { Allowuble } \\\text { Decrease }\end{array} \\\hline \text { \$B\$6 } & \text { Activity 1 } & 3 & 0 & 30 & 23 & 17 \\\hline \text { \$C\$6 } & \text { Activity 2 } & 6 & 0 & 40 & 50 & 10 \\\hline \text { \$D\$6 } & \text { Activity 3 } & 0 & - 7 & 20 & 7 & 1 \mathrm { E } + 30 \\\hline\end{array}$$
Constraints
$\begin{array}{|r|r|r|r|r|r|r|}\hline \text { Cell } & \text { Name } & \begin{array}{c}\text { Final } \\\text { Value }\end{array} & \begin{array}{c}\text { Shadow } \\\text { Price }\end{array} & \begin{array}{c}\text { Constraint } \\\text { R.H. Side }\end{array} & {\begin{array}{c}\text { Allowable } \\\text { Increase }\end{array}} & \begin{array}{c}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ \mathrm{E} \$ 2 & \text { Resource A } & 20 & 7.78 & 20 & 10 & 12.5 \\\hline \$ \mathrm{E} \$ 3 & \text { Resource B } & 30 & 6 & 30 & 50 & 10 \\\hline \$ \mathrm{E} \$ 4 & \text { Resource C } & 18 & \mathrm{0} & 40 & 1 \mathrm{E}+30 & 22\\\hline\end{array}$
If the coefficients of Activity 1 and Activity 2 in the objective function are both increased by $10, then:

• A) the optimal solution remains the same.
• B) the optimal solution may or may not remain the same.
• C) the optimal solution will change.
• D) the shadow prices are valid.
• E) None of the choices is correct.

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Definitions:

Restrictive Indorsement

An endorsement on a negotiable instrument that limits the way the instrument can be used, such as by specifying a particular payee.

Fiduciary Duty

An obligation to act in the best interest of another party, for instance, the duty a trustee has towards the beneficiaries of the trust.

Indorsee

The person to whom a negotiable instrument (like a check or promissory note) is endorsed or transferred.

Indorser

A person who signs a negotiable instrument, such as a check, over to another party, transferring ownership.