1. Consider the MSA marketing research example dis- cussed in Section 3.3 (page 74) of Chapter 3. Use the Sensitivity Report for this LP model (shown in Screenshot 4-7 on page 150) to answer the following questions. Each question is independent of the others. (a) What is the maximum unit cost that will make it worthwhile to include in the survey persons 30 years of age or younger who live in a border state? (b) What is the impact if MSA wants to increase the sample size to 3,000?
2. Suppose that Strollers-to-Go (Problem 4-24) is considering the production of TwinTotes for fami- lies who are doubly blessed. Each TwinTote would require $7.10 in materials, 4 hours of fabrication time, 2 hours of sewing time, and 2 hours to assem- ble. Would this product be economically attractive to manufacture if the sales price were $86? Why or why not?
3. Consider the Classic Furniture product mix problem (Problem 4-28). For each of the following situations, what would be the impact on the production plan and profit? If it is possible to compute the new profit or production plan, do so. (a) OFCs for oak tables and cherry tables each decreases by $15. (b) OFCs for oak tables and oak chairs are reversed. (c) OFCs for pine tables and pine chairs are reversed. (d) OFCPine Table increases by $20 while at the same time the OFCPine Chair decreases by $10. (e) Unit profits for all three types of chairs are increased by $6 each.
Questions from book managerial decision modeling.