1. In a company, the shadow price of Metal Stamping was 500. This implies that
(a) 500 extra units of Metal Stamping would increase the objective function by one
(b) The Metal Stamping constraint has a slack of 500 units
(c) One might be willing to pay up to $500 for an extra unit of Metal Stamping
(d) One can increase the Metal Stamping constraint by up to 500 units with no change in the optimal product mix
2. In operation management, generally speaking, one should not attempt to balance capacity with market demand because
(a) of the effect of statistical correlations in the bottleneck matrix
(b) of the effect of statistical fluctuations and dependent events
(c) a portion of inventories can be considered operational expenses
(d) market demand can fluctuate substantially