Variable Cells Constraints If the Coefficient for Activity 3 in the Objective Function

question 45

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 coefficient for Activity 3 in the objective function changes to $30, then the objective function value:

• A) will increase by $70.
• B) is $0.
• C) will increase by $30.
• D) will remain the same.
• E) will increase by an unknown amount.

Understand the strategic value of networks and network organizations in specialization and information diffusion.

Define modular organization and describe its benefits and downsides.

Identify strategic alliances and their role in achieving competitive advantage and strategic goals.

Differentiate between various organizational designs and their strategic purposes, including virtual and modular organizations.

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Definitions:

Containers Refurbished

Refers to the process of repairing, cleaning, and restoring containers to a like-new condition for reuse.

Activity Variance

The deviation between the budgeted amount of activity and the actual amount of activity during a specific period.

Budgeting

A financial planning process for projecting revenues, expenses, and savings goals for a specific period of time.

Net Operating Income

The total profit of a business after subtracting operating expenses but before deducting taxes and interest.