Exercise

Sensitivity case study exercise

Continue the case study of the Capacitated Plant Location model of a car manufacture. The model has been solved for you, and the shadow prices and the slack values of the constraints printed to the console. Note that the model input costs are in (thous. $US), and production demand and capacity are in (thous. of cars). Review the console and select the true statement.

Instructions

50 XP

Possible answers

Increasing the production capacity of the plant of Japan by 1 thous. cars will decrease the overall cost by $7 thous.

Germany, Brazil, and India have excess production capacity.

An increase in the total demand of 1 thous. cars in the USA region will decrease the overall cost by by $12 thous.