Question: 7) The following table represents the optimal solution for a maximization model, where S1 is a slack variable added to the first labor time resource

7) The following table represents the optimal

7) The following table represents the optimal solution for a maximization model, where S1 is a slack variable added to the first labor time resource constraint, and S2 is a slack variable added to the second labor time resource constraint. Both resources are in hours. If the company decide to increase the availability of the second resource by 3 hours, where each hour will cost 1. Which statement is correct x1 0 x3 0 s1 0 s2 2 RHS 80 X2 2 -4 2 0 0 3 20 1 0 1 0 -2 10 a) The company will lose, as the cost of added hours is greater than the benefit. b) Company will increase its profit to Znew = 86 c) Company will increase its profit to Znew = 83 d) The company should not buy at all as the there are unconsumed hours in the second resource

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!