Suppose That the Shadow Price for Assembly Time Is $5/hour

question 79

Multiple Choice

Suppose that the shadow price for assembly time is $5/hour. The allowable increase for the assembly time constraint is 40 hours, and the allowable decrease is 30 hours. If all assembly hours were used under the initial LP solution and workers normally make $4/hour but can work overtime for $6/hour, what should management do?

• A) do not change available hours for assembly time
• B) decrease available hours for assembly time by 30 hours
• C) increase available hours for assembly time by 40 hours
• D) decrease available hours for assembly time by 5 hours
• E) increase available hours for assembly time by 5 hours

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Definitions:

Geocentric Management

An approach to international business that seeks the best people for key jobs throughout an organization, regardless of nationality.

Organizational Behavior

The study of how people interact within groups in a workplace setting and how this behavior affects the performance, operation, and effectiveness of the organization.

Geert Hofstede

A Dutch social psychologist known for his research on cultural dimensions theory, which analyzes cross-cultural communication and differences.

American Management Theories

A set of ideas and practices related to business management that originated in the United States, emphasizing principles of efficiency, leadership, and strategic planning.