Manders Manufacturing Corporation uses the following model to determine an optimal short-term product mix for its two products, metal (M) and scrap metal (S):
Max Z = $30M + $70S
Where: 3M + 2S ≤ 15
2M + 4S ≤ 18
The two inequality functions in the above set of items represent:
A) Contribution margin functions.
B) Shadow points.
C) Objective function coefficients.
D) Resource constraints.
E) Sensitivity functions.

Question

Quizplus · Accepted Answer

The two inequality functions represent resource constraints, as they limit the amount of metal and scrap metal that can be used and therefore constrain the production process. The objective function is to maximize Z, which represents the total profit from the product mix. The other options (A, B, C, and E) do not accurately describe the two inequality functions.

Manders Manufacturing Corporation Uses the Following Model to Determine an Optimal