FollyGlass Questions

First Analysis: tab FollyGlass

1. What is the business meaning of the objective function?

2. What are the eight decision variab;es?

3. How are the supply constraints handled?

4. What does the problem statement tell us about demand?

5. Many resource limitations prevent us from making unlimited numbers of tires, but we just look at two types because they are the ones we will run out of first. What are these two types of limitations?

6 What is the business meaning of the line Cost1?

7. What is the bisiness meaning of the line Revenue1?

8. Under what circumstances could cell G18 be different from Cell G17?

9. What is the business meaning of the line Cost2? (Note that it is a bit more complicated than line Cost1.)

Ansert and Sensitivity Reports on First Analysis: tabs Ans 1 and Sens 1.

10. Is the solution degenerate?

11. Are the Objective Coefficients easy to interpret?

12. Are there multiple optimal solutions? How can you tell?

13. If we added a constraint that we had to make one fiberglass belted tire in Month 2, what would be the net change to total contribution?

a. Total Contribution would increase by more than $1

b. Total Contribution would increase by less than $1

c. Total Contribution would stay the same

d. Total Contribution would decrease by less than $1

e. Total Contribution would decrease by more than $1

14. If you could outsource 1,000 hours of machine time in month 2 at a cost to you that was $4,125 more than the cost per 1,000 hours of in-house machining, which if these is true?

a. You should definitely take advantage of this opportunity.

b. It doesn't affect your bottom line whether you take advantage of this opportunity or not.

c. You should definitely NOT take advantage of this so-called opportunity.

15. According to the sensitivity report in tab Sens 1, if you could borrow $1,000 interest free and pay it back at the end of Month 2, how much extra money would you make?

16 According to the tab ExtraDollar, if you could borrow $1,000 interest free and pay it back at the end of Month 2, how much extra money would you make?

17. Zero out the eight decision variables in tab FollyGlass and use what you see to comment on why your answers to questions 15 and 16 don't match.

Analysis with Supplementary Variables, tab Supp

18. What ate the ten decision variables?

19. What is the purpose of the line StartCash?

20. What is the putpose of the line Infusion?

21. What is the business meaning of each cell in the line Budget1?

22. What is the business meaning of each cell in the line Budget2?

23. According to the sensitivity report in tab Sens 1, if you could borrow $1,000 interest free and pay it back at the end of Month 2, how much extra money would you make?

24. According to the tab $1Month1, if you could borrow $1,000 interest free and pay it back at the end of Month 2, how much extra money would you make?

25. Zero out the eight decision variables in tab Sens and use what you see to comment on your answers to questions 15, 16, 17, 23, and 24.

26. What is the business meaning of the tab $1Month2?