Part 2 . Questions 2-7. Consider the product mix problem.

7B

10A + 5B

6A + 6B

A

B

≤

≤

≤

≥

≥

42

45

42

0

0

Question 2. What is the business question for this product mix problem?

(A) How many products can be produced to maximize profit and not exceed resource capacity?   

(B) How much profit results in using all the resources?

(C) What is the maximum number of products to produce?

(D) How many products can be produced to not exceed resource capacity?

(E) What is the maximum number of resources that can be used?

Question 3. How many non-negativity constraints are in this product mix problem?

    (A) 4    (B) 2    (C) 5    (D) 3    (E) None of the above

Question 4. What is the optimum profit for this product mix problem?

    (A) 36    (B) 48     (C) 30    (D) 40    (E) None of the above

Question 5. What is the optimal solution to this product mix problem?

    (A) (4,1)    (B) (3,7)    (C) (1,6)    (D) (2,5)    (E) None of the above

Question 6. At the optimal solution, which resource is non-binding?

    (A) X    (B) Y    (C) Z    (D) All of the above    (E) None of the above

Question 7. How many statements are correct?    (A) 0    (B) 1    (C) 2    (D) 3    (E) 4

Statement 1. For a mix of ( 1 , 2 ) the profit is 14.

Statement 2. At the mix ( 1 , 2 ), Resource X is binding.

Statement 3. The mix ( 2.6 , 3.4 ) is feasible.

Statement 4. If an additional constraint is that the production of product "A" must be exactly equal to 60% of the total production of "A" and "B" combined, then profit at the optimal solution to this product mix problem is $27?

.