Brs Mdm3 Tif Ch04

Managerial Decision Modeling w/ Spreadsheets, 3e (Balakrishnan/Render/Stair)
Chapter 4 Linear Programming Sensitivity Analysis

4.1 Chapter Questions

1) Surplus is typically associated with which type of constraints?
A) ≤
B) ≥
C) =
D) ≠
E) ±
Answer: B
Page Ref: 124
Topic: Sensitivity Analysis Using Graphs
Difficulty: Easy

2) Assume that the shadow price of a non-binding "≤" constraint is 5. This implies that:
A) if the right-hand side value of the constraint increases by 1 unit, the objective function value will increase by 5 units
B) if the right-hand side value of the constraint increases by 1 unit, the objective function value will decrease by 5 units
C) if the right-hand side value of the constraint increases by 1 unit, the objective function value will remain unchanged
D) if the right-hand side value of the constraint decreases by 1 unit, the objective function value will increase by 5 units
E) if the objective function coefficient increases by 1 unit, the shadow price will increase by 5 units
Answer: C
Page Ref: 124
Topic: Sensitivity Analysis Using Graphs
Difficulty: Easy

3) A constraint has a slack of 5 units. This implies that:
A) this constraint has exceeded its minimal requirement by 5 units
B) this constraint has consumed 5 units of its resource
C) this constraint has a surplus of 5 units
D) this constraint is binding
E) this constraint has 5 units of its resource unconsumed
Answer: E
Page Ref: 127
Topic: Sensitivity Analysis Using Graphs
Difficulty: Easy
4) A constraint has a surplus of 10 units. This implies that:
A) this constraint has exceeded its minimal requirement by 10 units
B) this constraint has consumed 10 units of its resource
C) this constraint has a slack of 10 units
D) this constraint has 10 units of its resource unconsumed
E) this constraint is binding
Answer: A
Page Ref: 142
Topic: Sensitivity Analysis for a Minimization Example
Difficulty: Easy

5) Impact of changes in RHS values of constraints is typically