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An automobile manufacturer has eight outdated plants in various American, European and Asian cities. Management is considering updating these plants to manufacturer engine blocks and

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An automobile manufacturer has eight outdated plants in various American, European and Asian cities. Management is considering updating these plants to manufacturer engine blocks and transmissions for a new model car. The cost to update each plant and the manufacturing capacity after the update are provided in the table below. The projected needs are for total capacities of at least 975.000 engine blocks and a minimum of 1,120,000 transmissions. In selecting the plants to be updated, the following conditions must be met (1) at least 2 plants in Asia must be updated, (2) no more than One plant in the US can be updated, (3) update only one plant in Europe, and (4) update at least 4 plants overall Management wants to determine which plants to update to meet projected manufacturing needs and, at the same time, minimize total updating cost If the optimal solution is updating all plants except A,E,G and H and one of the feasible solutions is updating plants B,D,F and H the absolute difference in the value of the objective resulting from applying these two scenarios is: A. 80,000 B. Cannot be determined C. 13 million D. ?? E. ?? Which of the following statements is not true? A. A binding constraint limits the ability to improve the objective function. B. Relaxing a non binding constraint does not improve the objective function. C. Relaxing a binding constraint does not improve the objective function. D. For nonbinding inequality constraints, it is helpful to know how much the two sides (left-hand and right-hand side) differ

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