A maximization linear programming model has been developed and solved using Solver, resulting in one unique optimal solution. A sensitivity report has been generated, which presents the allowable ranges for the objective function coefficients. One of these coefficients applies to X1 (i.e., the profit margin) and has an upper bound of 80 while the lower bound is 60. The current coefficient is 75. Which of the following must be true if the coefficient is decreased to 70?

a. a new corner point will become optimal

b. the maximum possible total profit may increase

c. the optimal solution will remain the same

d. the new OFV will decrease.

e. none of the above are true statements

Let D be an allowable decrease made to the RHS value of one of the resource constraints in a maximization linear programming problem. The impact of this change to the optimal objective function value is measured by the product of:

a. D and the shadow price

b. D and slack variable

c. D and the surplus variable

d. objective function coefficients

Let C be an allowable increase made to one of the objective function coefficients in a linear programming model. The impact of this change to the objective function optimal value is measured by the product of:

a. C and the shadow price

b. C and the slack variable

c. C and the surplus variable

d. C and the associated decision variable optimal value

Which one of the following statements concerning the transshipment model is FALSE?

a. In general, a supply node is one where flow begins in a transportation network.

b. In general, a transshipment node is one where the total flow into the node equals the total flow out of the node.

c. The model can have multiple demand nodes.

d. The network must always be a balanced network.

e. a, b, and c are true statements.

In an unbalanced transportation problem where total supply exceeds total demand,

a. all demands will not be fully satisfied

b. all supply will be consumed

c. all demand will be satisfied

d. none of the above