Question 1
Sensitivity analysis helps to
◦ see the value of increased scarce resources.
◦ determine even better solutions.
◦ see the impact of parameter changes.
◦ A and C.
◦ A, B, and C.
Question 2
Suppose that the shadow price for assembly time is $5/hour. 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?
◦ do not change available hours for assembly time
◦ decrease available hours for assembly time
◦ increase available hours for assembly time
◦ not enough information
◦ Either A or C will result in larger profits than B.