The following siy questions are based on the follow ing case Dunder Mittin Techn

Question

The following siy questions are based on the follow ing case Dunder Mittin Technologies (DMT) produces trendy tablets. Two of its models are the market leaders: Supercool and Ubercool. Supercool has a peofit margin of $130 and Ubercool brings in a profit of $180. Producing Supercool requires 1 processor and 3 standard memory chips whereas Ubercool needs 2 processors and 2 premium memory chips. DMT has 100 processors, 120 standard printing chips and 70 premium printing chips. Variable definitions for the linear ing problem, the profit maximization peoblem and the sensitavity analysis are peovided You are required to answer the questions which follow using this information Let, S- number of Supercool models produced U- number of Ubercool models produced Max. 130 S+ 180U Subject to: S + 2U100 (Processor Constraint) 3S S120 (Standard Chip Constraint) 2U70 (Premium Chip Constraint) s, U20 ell SBS2 Ubercool inal Shadew Constraint Value Price Allowable Deereas l Name L. Side 100XXX 59 Processor SAS1I Premium Chip I. What is the shadow (dual) price of the constraint "Premium Chip" 2. In the above sensitivity analysis, what is the allowable increase for the "Supercool 3.333 b. 90 d. 10 e. None of the others. model objectiv.40 . 300 e c. 150 . 40 What is the shadow (dual) price for the "Processor" constraint in the sensitivity analysis? a. 0 3. d. 90 e. None of the others. b. 10 c. 60 4. If the objective function coefficient of "Supercool" is reduced by more than $50, which of following could be the new optimal solution for "Ubercool"? e, 34, 35 and 36 are all po c, 36 d, 35 and 36 are possible, a.34 b. 35

Explanation / Answer

1)

Shadow price of primium chip is zero. Option C is correct. Because allowable increase is ifinity

2)

Option A

3) 90

4) Option e

5)

Since the shadow price = 1333, anything greater than 1333 is acceptable.

So Option d

6)

shadow price of premium chip is zero.

So it does not effect the optimal solution

Option d is correct

Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $A$2 40 0 130 1E+30 40 $B$2 30 0 180 80 180 Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease $C$4 100 90 100 10 60 $C$5 120 13.33333333 120 180 30 $C$6 60 0 70 1E+30 10

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