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An Introduction to Management Science Quantitative Approaches to Decision Making, 15e David Anderson, Dennis Sweeney, Thomas Williams et al (Test Bank All Chapters, 100% Original Verified, A+ Grade) CH 01 - Introduction True / False 1. The process of decision making is more limited than that of problem solving. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 2. The breakeven point is the point at which the volume of output produced is the result of total revenue equaling total cost. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Understand 3. Problem solving encompasses both the identification of a problem and the action to resolve it. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 4. The decision-making process includes implementation and subsequent evaluation of the decision. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction KEYWORDS:

Bloom's: Understand

5. Most successful quantitative analysis models will advise separating the management analyst from the managerial team until after the problem has been fully structured. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 6. The value of making a decision based on models is dependent on how closely the model represents the real situation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 7. Uncontrollable inputs are the decision variables for a model. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Remember 8. The feasible solution is the best solution possible for a mathematical model. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction TOPICS: KEYWORDS:

1.3 Quantitative Analysis Bloom's: Understand

9. Frederic W. Taylor is credited with providing the foundation for quantitative methodology in the early part of the 20th century. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 10. To identify the choice that provides the highest profit and also uses the fewest employees, we apply a single-criterion decision process. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 11. The most critical component in determining the success or failure of any quantitative approach to decision making is problem definition. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Remember 12. The first step in the decision-making process is to identify the problem. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 13. All uncontrollable inputs or data must be specified before we can analyze the model and recommend a decision or solution for the problem. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 14. If you are deciding to buy either machine A, B, or C with the objective of minimizing the sum of labor, material and utility costs, you are dealing with a single-criterion decision. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 15. Model development should be left to quantitative analysts; the model user's involvement should begin at the implementation stage. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 16. A feasible solution is one that satisfies at least one of the constraints in the problem. a. True b. False ANSWER: False © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 17. A toy train layout designed to represent an actual railyard is an example of an analog model. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Remember 18. The last step in any problem-solving process is to choose the correct alternative among those available. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 19. Decision variables in a production process are those that cannot be controlled by the manager. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 20. The optimal solution to a model is one in which known, specific values provide the best output. a. True b. False ANSWER: True © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 21. If all the uncontrollable inputs into the decision-making process are known to the decision maker, the model of decision making is known as "stochastic." a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Remember Multiple Choice 22. The field of management science a. concentrates on the use of quantitative methods to assist in decision making. b. approaches decision making rationally, with techniques based on the scientific method. c. is another name for decision science and for operations research. d. All of these are correct. ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 23. By identifying and defining a problem, we have a. taken the final step in the decision-making process. b. proposed all viable alternatives. c. considered multiple criteria. d. taken the first step of decision making. ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction TOPICS: KEYWORDS:

1.1 Problem Solving and Decision Making Bloom's: Remember

24. The set of decision alternatives a. should be identified before the decision criteria are established. b. are limited to quantitative solutions. c. are evaluated as a part of the problem definition stage. d. are best generated by brainstorming. ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 25. Decision criteria a. are the choices faced by the decision maker. b. are the problems faced by the decision maker. c. are the ways to evaluate the choices faced by the decision maker. d. are unique for any problem. ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 26. In a multicriteria decision problem a. it is impossible to select a single decision alternative. b. the decision maker must evaluate each alternative with respect to each criterion. c. successive decisions must be made over time. d. All of these are correct. ANSWER: b POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 27. The quantitative analysis approach requires a. the manager's prior experience with a similar problem. © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction b. a relatively uncomplicated problem. c. mathematical expressions for the relationships. d. All of these are correct. ANSWER: c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.02 - 1.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.2 Quantitative Analysis and Decision Making KEYWORDS: Bloom's: Remember 28. A thermometer is an example of a model that does not have the same physical appearance as that which is being modeled; thus, it is a(n) a. analog model. b. iconic model. c. mathematical model. d. qualitative model. ANSWER: a POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 29. Inputs to a quantitative model a. are a trivial part of the problem solving process. b. are uncertain for a stochastic model. c. are uncontrollable for the decision variables. d. must all be deterministic if the problem is to have a solution. ANSWER: b POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 30. When the value of the output cannot be determined even if the value of the controllable input is known, the model is a. analog. b. digital. c. stochastic. d. deterministic. ANSWER: c © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 31. The volume that results in total revenue being equal to total cost is known as the a. breakeven point. b. marginal volume. c. marginal cost. d. profit mix. ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Remember 32. Management science and operations research both involve a. qualitative managerial skills. b. quantitative approaches to decision making. c. operational management skills. d. scientific research as opposed to applications. ANSWER: b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 33. George Dantzig is important in the history of management science because he developed a. the scientific management revolution. b. World War II operations research teams. c. the simplex method for linear programming. d. powerful digital computers. ANSWER: c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction KEYWORDS:

Bloom's: Remember

34. In order to undertake problem solving, the first step must be a. the determination of the correct analytical solution procedure. b. the definition of decision variables. c. the identification of a difference between the actual and desired state of affairs. d. None of these are correct. ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Understand 35. The process of problem definition must a. include specific objectives and operating constraints. b. occur prior to the quantitative analysis process. c. involve both the analyst and the user of the results. d. All of these are correct. ANSWER: d POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 36. A model that uses a system of symbols or expressions to represent a problem is called a(n) ______ model. a. mathematical b. iconic c. analog d. constrained ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Understand 37. Which of the following is NOT one of the commonly used names for the body of knowledge involving quantitative approaches to decision making? a. management science © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction b. business analytics c. operations research d. efficiency studies ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.1 Problem Solving and Decision Making KEYWORDS: Bloom's: Remember 38. A valid reason for using a quantitative approach to the decision-making process is when a. the problem is repetitive, necessitating routine decision making. b. the problem is unique and the manager has no prior experience solving this sort of problem. c. the problem is particularly complex. d. All of these are correct. ANSWER: d POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.02 - 1.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 1.2 Quantitative Analysis and Decision Making KEYWORDS: Bloom's: Understand Subjective Short Answer 39. A snack food manufacturer buys corn for tortilla chips from two cooperatives, one in Iowa and one in Illinois. The price per unit of the Iowa corn is $6.00 and the price per unit of the Illinois corn is $5.50. a. Define variables that would tell how many units to purchase from each source. b. Develop an objective function that would minimize the total cost. The manufacturer needs at least 12,000 units of corn. The Iowa cooperative can supply up to c. 8000 units, and the Illinois cooperative can supply at least 6000 units. Develop constraints for these conditions. ANSWER: a. b. c.

Let x1 = the number of units from Iowa Let x2 = the number of units from Illinois Min 6x1 + 5.5x2 x1 + x 2 ≥ 12,000 x1 ≥ 8000 x1 ≥ 6000

POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Analytic © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction TOPICS: KEYWORDS:

1.3 Quantitative Analysis Bloom's: Apply

40. The relationship d = 5000 − 25p describes what happens to demand (d) as price (p) varies. Here, price can vary between $10 and $50. a. How many units can be sold at the $10 price? How many can be sold at the $50 price? b. Model the expression for total revenue. Consider prices of $20, $30, and $40. Which of these three price alternatives will maximize c. total revenue? What are the values for demand and revenue at this price? ANSWER:

a. b. c.

For p = 10, d = 4750 For p = 50, d = 3750 TR = p(5000 − 25p) For p = 20, d = 4500, TR = $90,000 For p = 30, d = 4250, TR = $127,500 For p = 40, d = 4000, TR = $160,000 (maximum total revenue)

POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Apply 41. There is a fixed cost of $50,000 to start a production process. Once the process has begun, the variable cost per unit is $25. The revenue per unit is projected to be $45. a. Write an expression for total cost. b. Write an expression for total revenue. c. Write an expression for total profit. d. Find the breakeven point. ANSWER:

a. C(x) = 50000 + 25x b. R(x) = 45x c. P(x) = 45x − (50000 + 25x) d. x = 2500 POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Apply 42. An author has received an advance against royalties of $10,000. The royalty rate is $1.00 for every book sold in the United States, and $1.35 for every book sold outside the United States. Define variables for this problem and write an expression that could be used to calculate the number of books to be sold to cover the advance. ANSWER: Let x1 = the number of books sold in the U.S. Let x2 = the number of books sold outside the U.S. 10000 = 1x1 + 1.35x2 © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Apply 43. A university schedules summer school courses based on anticipated enrollment. The cost for faculty compensation, laboratories, student services, and allocated overhead for a computer class is $8500. If students pay $920 to enroll in the course, how large would enrollment have to be for the university to break even? ANSWER: Enrollment would need to be 10 students. POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Evaluate 44. As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast operation, the prospective owners have projected: Monthly fixed cost (loan payment, taxes, insurance, maintenance) Variable cost per occupied room per night Revenue per occupied room per night a. b. c.

$6000 20 75

Write the expression for total cost per month. Assume 30 days per month. Write the expression for total revenue per month. If there are 12 guest rooms available, can they break even? What percentage of rooms would need to be occupied, on average, to break even?

ANSWER:

a. b. c.

C(x) = 6000 + 20(30)x (monthly) R(x) = 75(30)x (monthly) Breakeven occupancy = 3.64 or 4 occupied rooms per night, so they have enough rooms to breakeven. This would be a 33% occupancy rate.

POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Blooms': Apply 45. Organizers of an Internet training session will charge participants $150 to attend. It costs $3000 to reserve the room, hire the instructor, bring in the equipment, and advertise. Assume it costs $25 per student for the organizers to provide the course materials. a. How many students would have to attend for the company to break even? If the trainers think, realistically, that 20 people will attend, then what price should be b. charged per person for the organization to break even? © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction ANSWER:

C(x) = 3000 + 25x R(x) = 150x Breakeven students = 24 Cost = 3000 + 25(20) Revenue = 20p Breakeven price = $175

POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Apply 46. In this portion of an Excel spreadsheet, the user has given values for selling price, the costs, and a sample volume. Give the cell formula for a. cell E12, breakeven volume. b. cell E16, total revenue. c. cell E17, total cost. d. cell E19, profit (loss). A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Breakeven calculation Selling price per unit

Costs Fix cost Variable cost per unit

8400 4.5

Breakeven volume Sample calculation Volume Total revenue Total cost

2000

Profit (loss)

ANSWER:

a. =E9/(E6-E10) b. =E15*E6 c. =E9+E10*E15 d. =E16-E17 POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.05 - 1.5 © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.5 Management Science Techniques KEYWORDS: Bloom's: Apply 47. A furniture store has set aside 800 square feet to display its sofas and chairs. Each sofa utilizes 50 sq. ft. and each chair utilizes 30 sq. ft. At least five sofas and at least five chairs are to be displayed. a. Write a mathematical model representing the store's constraints. Suppose the profit on sofas is $200 and on chairs is $100. On a given day, the probability b. that a displayed sofa will be sold is .03 and that a displayed chair will be sold is .05. Mathematically model each of the following objectives: 1. Maximize the total pieces of furniture displayed. 2. Maximize the total expected number of daily sales. 3. Maximize the total expected daily profit. ANSWER: a. 50s + 30c ≤ 800 s≥5 c≥5 b. (1) Max s + c (2) Max .03s + .05c (3) Max 6s + 5c POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Apply 48. A manufacturer makes two products, doors and windows. Each must be processed through two work areas. Work area #1 has 60 hours of available production time per week. Work area #2 has 48 hours of available production time per week. Manufacturing of a door requires 4 hours in work area #1 and 2 hours in work area #2. Manufacturing of a window requires 2 hours in work area #1 and 4 hours in work area #2. Profit is $8 per door and $6 per window. a. Define decision variables that will tell how many units to build (doors and windows) per week. b. Develop an objective function that will maximize total profit per week. c. Develop production constraints for work area #1 and #2. ANSWER: a. Let D = the number of doors to build per week Let N = the number of windows to build per week b. Weekly Profit = 8D + 6W c. 4D + 2W ≤ 60 2D + 4W ≤ 48 POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Apply 49. A firm builds and sells small, ergonomic conference tables. The investment in plant and equipment is $165,000. The variable cost per table is $1,500. The selling price of each table is $3,000. How many tables would have to be sold for the © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction firm to break even? ANSWER: 110 tables POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Evaluate 50. A computer rework center has the capacity to rework 300 computers per day. The expected number of computers needing to be reworked per day is 225. The center is paid $26 for each computer reworked. The fixed cost of renting the reworking equipment is $250 per day. Work space rents for $150 per day. The cost of material is $18 per computer and labor costs $3 per computer. What is the breakeven number of computers reworked per day? ANSWER: 80 computers POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Evaluate 51. To establish a driver education school, organizers must decide how many cars, instructors, and students to have. Costs are estimated as follows. Annual fixed costs to operate the school are $30,000. The annual cost per car is $3000. The annual cost per instructor is $11,000 and one instructor is needed for each car. Tuition for each student is $350. Let x be the number of cars and y be the number of students. a. Write an expression for total cost. b. Write an expression for total revenue. c. Write an expression for total profit. d. The school offers the course eight times each year. Each time the course is offered, there are two sessions. If they decide to operate five cars, and if four students can be assigned to each car, will they break even? ANSWER: a. C(x) = 30000 + 14000x b. R(y) = 350y c. P(x,y) = 350y − (30000 + 14000x) d. Each car/instructor can serve up to (4 students/session)(2 sessions/course)(8 courses/year) = 64 students annually. Five cars can serve 320 students. If the classes are filled, then profit for five cars is 350(320) − (30000 + 14000(5)) = 12000. So, the school can reach the breakeven point. POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Apply 52. Zipco Printing operates a shop that has five printing machines. The machines differ in their capacities to perform © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction various printing operations due to differences in the machines' designs and operator skill levels. At the start of the workday there are five printing jobs to schedule. The manager must decide what the job-machine assignments should be. a. How could a quantitative approach to decision making be used to solve this problem? b. What would be the uncontrollable inputs for which data must be collected? Define the decision variables, objective function, and constraints to appear in the c. mathematical model. d. Is the model deterministic or stochastic? e. Suggest some simplifying assumptions for this problem. ANSWER: a. A quantitative approach to decision making can provide a systematic way for deciding the job-machine pairings so that total job processing time is minimized. b. How long it takes to process each job on each machine, and any job-machine pairings that are unacceptable. c. Decision variables: one for each job-machine pairing, taking on a value of 1 if the pairing is used and 0 otherwise. Objective function: minimize total job processing time. Constraints: each job is assigned to exactly one machine, and each machine be assigned no more than one job. d. Stochastic: job processing times vary due to varying machine set-up times, variable operator performance, and more. e. Assume that processing times are deterministic (known/fixed). POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Evaluate 53. Consider a department store that must make weekly shipments of a certain product from two different warehouses to four different stores. a. How could a quantitative approach to decision making be used to solve this problem? b. What would be the uncontrollable inputs for which data must be gathered? What would be the decision variables of the mathematical model? the objective function? the c. constraints? d. Is the model deterministic or stochastic? e. Suggest assumptions that could be made to simplify the model. ANSWER: A quantitative approach to decision making can provide a systematic way to determine a a. minimum shipping cost from the warehouses to the stores. Fixed costs and variable shipping costs; the demand each week at each store; the b. supplies each week at each warehouse. Decision variables--how much to ship from each warehouse to each store; objective c. function--minimize total shipping costs; constraints--meet the demand at the stores without exceeding the supplies at the warehouses. Stochastic--weekly demands fluctuate as do weekly supplies; transportation costs could d. vary depending upon the amount shipped, other goods sent with a shipment, etc. Make the model deterministic by assuming fixed shipping costs per item, demand is e. constant at each store each week, and weekly supplies in the warehouses are constant. POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3 © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.3 Quantitative Analysis KEYWORDS: Bloom's: Evaluate 54. Three production processes—A, B, and C—have the following cost structure: Process

Fixed Cost per Year

Variable Cost per Unit

A B C

$120,000 90,000 80,000

$3.00 4.00 4.50

a. What is the most economical process for a volume of 8,000 units? How many units per year must be sold with each process to have annual profits of $50,000 if the selling price is $6.95 b. per unit? c. What is the breakeven volume for each process? ANSWER:

a. C(x) = FC + VC(x) Process A: C(x) = $120,000 + $3.00(8,000) = $144,000 per year Process B: C(x) = $ 90,000 + $4.00(8,000) = $122,000 per year Process C: C(x) = $ 80,000 + $4.50(8,000) = $116,000 per year Process C has the lowest annual cost for a production volume of 8,000 units. b. Q = (profit + FC)/(price - VC) Process A: Q = ($50,000 + $120,000)/($6.95 - $3.00) = 43,038 units Process B: Q = ($50,000 + $ 90,000)/($6.95 - $4.00) = 47,458 units Process C: Q = ($50,000 + $ 80,000)/($6.95 - $4.50) = 53,062 units Process A requires the lowest production volume for an annual profit of $50,000. c. At breakeven, profit (the pretax profits per period) is equal to zero. Q = FC/(price - VC) Process A: Q = $120,000/ ($6.95 - $3.00) = 30,380 units Process B: Q = $ 90,000/ ($6.95 - $4.00) = 30,509 units Process C: Q = $ 80,000/ ($6.95 - $4.50) = 32,654 units Process A has the lowest breakeven quantity, while Process B’s is almost as low.

POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 1.4 Models of Cost, Revenue, and Profit KEYWORDS: Bloom's: Apply 55. Jane Persico, facility engineer at the El Paso plant of Computer Products Corporation (CPC), is studying a process selection decision at the plant. A new printer is to be manufactured and she must decide whether the printer will be autoassembled or manually assembled. The decision is complicated by the fact that annual production volume is expected to increase by almost 50% over three years. Jane has developed these estimates for two alternatives for the printer assembly process: © Cengage. Testing Powered by Cognero.

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CH 01 - Introduction

Annual fixed cost Variable cost per product Estimated annual production (in number of products):

Year 1 Year 2 Year 3

AutoAssembly Process

Manual Assembly Process

$690,000 $29.56

$269,000 $31.69

152,000 190,000 225,000

a. Which production process would be the least-cost alternative in Years 1, 2, and 3? b. How much would the variable cost per unit have to be in Year 2 for the auto-assembly process to justify the additional annual fixed cost for the auto-assembly process over the manual assembly process? ANSWER:

a. C(x) = fixed cost + variable cost(x) Year 1: CA = 690,000 + 29.56(152,000) = $5,183,120 CM = 269,000 + 31.69(152,000) = $5,085,880 (least-cost alternative) Year 2: CA = 690,000 + 29.56(190,000) = $6,306,400 CM = 269,000 + 31.69(190,000) = $6,290,100 (least-cost alternative) Year 3: CA = 690,000 + 29.56(225,000) = $7,341,000 (least-cost alternative) CM = 269,000 + 31.69(225,000) = $7,399,250 b. CA = CM FCA + vA(190,000) = FCM + vM(190,000) 690,000 + v(190,000) = 269,000 + 31.69(190,000) vA = (269,000 + 6,021,100 - 690,000)/190,000 vA = $29.47 (roughly a 0.3% reduction)

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CH 02 - An Introduction to Linear Programming True / False 1. In a linear programming problem, the objective function and the constraints must be linear functions of the decision variables. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.1 A Simple Maximization Problem KEYWORDS: Bloom's: Remember 2. Only binding constraints form the shape (boundaries) of the feasible region. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Remember 3. It is not possible to have more than one optimal solution to a linear programming problem. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Understand 4. A linear programming problem can be both unbounded and infeasible. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.06 - 2.6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.6 Special Cases © Cengage. Testing Powered by Cognero.

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CH 02 - An Introduction to Linear Programming KEYWORDS:

Bloom's: Understand

5. An infeasible problem is one in which the objective function can be increased to infinity. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.06 - 2.6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.6 Special Cases KEYWORDS: Bloom's: Understand 6. An unbounded feasible region might not result in an unbounded solution for a minimization or maximization problem. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.06 - 2.6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.6 Special Cases KEYWORDS: Bloom's: Understand 7. An optimal solution to a linear programming problem can be found at an extreme point of the feasible region for the problem. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.03 - 2.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.3 Extreme Points and the Optimal Solution KEYWORDS: Bloom's: Understand 8. The optimal solution to any linear programming problem is the same as the optimal solution to the standard form of the problem. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 © Cengage. Testing Powered by Cognero.

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CH 02 - An Introduction to Linear Programming NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.1 A Simple Maximization Problem KEYWORDS: Bloom's: Understand 9. The constraint 2x1 − x2 = 0 passes through the point (200, 100). a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Understand 10. The point (3, 2) is feasible for the constraint 2x1 + 6x2 ≤ 30. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Understand 11. No matter what value it has, each objective function line is parallel to every other objective function line in a problem. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Understand 12. Constraints limit the degree to which the objective in a linear programming problem is satisfied. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 © Cengage. Testing Powered by Cognero.

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CH 02 - An Introduction to Linear Programming NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.1 A Simple Maximization Problem KEYWORDS: Bloom's: Remember 13. Alternative optimal solutions occur when there is no feasible solution to the problem. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.06 - 2.6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.6 Special Cases KEYWORDS: Bloom's: Understand 14. Because surplus variables represent the amount by which the solution exceeds a minimum target, they are given positive coefficients in the objective function. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.1 A Simple Maximization Problem KEYWORDS: Bloom's: Understand 15. A redundant constraint cannot be removed from the problem without affecting the feasible region. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Understand 16. The constraint 5x1 − 2x2 ≤ 0 passes through the point (20, 50). a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate © Cengage. Testing Powered by Cognero.

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CH 02 - An Introduction to Linear Programming LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Understand 17. At a problem's optimal solution, a redundant constraint will have zero slack. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Blooms: Understand 18. If a constraint is redundant, it can be removed from the problem without affecting the feasible region. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Understand 19. For a minimization problem, the solution is considered to be unbounded if the value may be made infinitely small. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.06 - 2.6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.6 Special Cases KEYWORDS: Bloom's: Remember Multiple Choice 20. The maximization or minimization of a desired quantity is the a. goal of management science. b. decision for decision analysis. c. constraint of operations research. d. objective of linear programming. © Cengage. Testing Powered by Cognero.

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CH 02 - An Introduction to Linear Programming ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.1 A Simple Maximization Problem KEYWORDS: Bloom's: Remember 21. Decision variables a. are values that are used to determine how much or how many of something to produce, invest, etc. b. represent the values of the constraints. c. are values that measure the objective function. d. must be unique for each constraint. ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.1 A Simple Maximization Problem KEYWORDS: Bloom's: Understand 22. Which of the following is a valid objective function for a linear programming problem? a. Min 8xy b. Min 4x + 3y + (1/2)z c. Min 5x2 + 6y2 d. Max (x1 + x2)/x3 ANSWER: b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.1 A Simple Maximization Problem KEYWORDS: Bloom's: Understand 23. Which of the following statements is NOT true? a. A feasible solution satisfies all constraints. b. An optimal solution satisfies all constraints. c. An infeasible solution violates all constraints. d. A feasible solution point does not have to lie on the boundary of the feasible region. ANSWER: c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 © Cengage. Testing Powered by Cognero.

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CH 02 - An Introduction to Linear Programming NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Understand 24. When no solution to the linear programming problem satisfies all the constraints, including the nonnegativity conditions, it is considered a. optimal. b. feasible. c. infeasible. d. semifeasible. ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.02.06 - 2.6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.6 Special Cases KEYWORDS: Bloom's: Understand 25. The amount by which the left side of a less-than-or-equal-to constraint is smaller than the right side a. is known as a surplus. b. is known as slack. c. is optimized for the linear programming problem. d. exists for each variable in a linear programming problem. ANSWER: b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Understand 26. To find the optimal solution to a linear programming problem using the graphical method, a. find the feasible point that is the farthest away from the origin. b. find the feasible point that is at the highest location. c. find the feasible point that is closest to the origin. d. None of these are correct. ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.03 - 2.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.3 Extreme Points and the Optimal Solution KEYWORDS: Blooms: Understand

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CH 02 - An Introduction to Linear Programming 27. Which of the following special cases does NOT require reformulation of the problem in order to obtain a solution? a. alternative optimality b. infeasibility c. unboundedness d. Each case requires a reformulation. ANSWER: a POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.02.06 - 2.6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.6 Special Cases KEYWORDS: Bloom's: Understand 28. Infeasibility means that the number of solutions to the linear programming models that satisfies all constraints is a. at least 1. b. 0. c. an infinite number. d. at least 2. ANSWER: b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.06 - 2.6 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.6 Special Cases KEYWORDS: Bloom's: Remember 29. A constraint that does NOT affect the feasible region of the solution is a a. nonnegativity constraint. b. redundant constraint. c. standard constraint. d. slack constraint. ANSWER: b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Remember 30. Whenever all the constraints in a linear program are expressed as equalities, the linear program is said to be written in a. standard form. b. bounded form. c. feasible form. d. alternative form. © Cengage. Testing Powered by Cognero.

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CH 02 - An Introduction to Linear Programming ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Remember 31. All of the following statements about a redundant constraint are correct EXCEPT a. a redundant constraint does not affect the optimal solution. b. a redundant constraint does not affect the feasible region. c. recognizing a redundant constraint is easy with the graphical solution method. d. at the optimal solution, a redundant constraint will have zero slack. ANSWER: d POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Understand 32. All linear programming problems have all of the following properties EXCEPT a. a linear objective function that is to be maximized or minimized. b. a set of linear constraints. c. alternative optimal solutions. d. variables that are all restricted to nonnegative values. ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.1 A Simple Maximization Problem KEYWORDS: Bloom's: Understand 33. If there is a maximum of 4,000 hours of labor available per month and 300 ping-pong balls (x1) or 125 wiffle balls (x2) can be produced per hour of labor, which of the following constraints reflects this situation? a. 300x1 + 125x2 > 4,000 b. 300x1 + 125x2 < 4,000 c. 425(x1 + x2) < 4,000 d. 300x1 + 125x2 = 4,000 ANSWER: POINTS: DIFFICULTY:

b 1 Moderate

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CH 02 - An Introduction to Linear Programming LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.1 A Simple Maximization Problem KEYWORDS: Bloom's: Apply 34. In which part(s) of a linear programming formulation would the decision variables be stated? a. objective function and the left-hand side of each constraint b. objective function and the right-hand side of each constraint c. the left-hand side of each constraint only d. the objective function only ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.1 A Simple Maximization Problem KEYWORDS: Bloom's: Understand 35. The three assumptions necessary for a linear programming model to be appropriate include all of the following EXCEPT a. proportionality. b. additivity. c. divisibility. d. normality. ANSWER: d POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.1 A Simple Maximization Problem KEYWORDS: Bloom's: Remember 36. A redundant constraint results in a. no change in the optimal solution(s). b. an unbounded solution. c. no feasible solution. d. alternative optimal solutions. ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Remember © Cengage. Testing Powered by Cognero.

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CH 02 - An Introduction to Linear Programming 37. A variable added to the left-hand side of a less-than-or-equal-to constraint to convert the constraint into an equality is a a. standard variable. b. slack variable. c. surplus variable. d. nonnegative variable. ANSWER: b POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Remember Subjective Short Answer 38. Solve the following system of simultaneous equations. 6X + 2Y = 50 2X + 4Y = 20 ANSWER: X = 8, Y =1 POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Apply 39. Solve the following system of simultaneous equations. 6X + 4Y = 40 2X + 3Y = 20 ANSWER: X = 4, Y = 4 POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Apply 40. Consider the following linear programming problem: Max s.t.

8X + 7Y 15X + 5Y ≤ 75 10X + 6Y ≤ 60 X+ Y≤8

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CH 02 - An Introduction to Linear Programming X, Y ≥ 0 a.

Use a graph to show each constraint and the feasible region. Identify the optimal solution point on your graph. What are the values of X and Y at the b. optimal solution? c. What is the optimal value of the objective function? ANSWER:

The optimal solution occurs at the intersection of constraints 2 and 3. The point is X = 3, Y = 5. The value of the objective function is 59.

c. POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Apply

41. For the following linear programming problem, determine the optimal solution using the graphical solution method. −X + 2Y 6X − 2Y ≤ 3 −2X + 3Y ≤ 6 X+ Y≤3 X, Y ≥ 0 ANSWER: Max s.t.

X = 0.6 and Y = 2.4

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CH 02 - An Introduction to Linear Programming

Max s.t.

20X + 10Y 12X + 15Y ≤ 180 15X + 10Y ≤ 150 3X − 8Y ≤ 0 X, Y ≥ 0

Page 13

CH 02 - An Introduction to Linear Programming a. b. c. d.

Which area (I, II, III, IV, or V) forms the feasible region? Which point (A, B, C, D, or E) is optimal? Which constraints are binding? Which slack variables equal zero?

ANSWER:

a. b. c. d.

Area III is the feasible region. Point D is optimal. Constraints 2 and 3 are binding. S2 and S3 are equal to 0.

POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Analyze 43. Find the complete optimal solution to this linear programming problem. Min s.t.

5X + 6Y 3X + Y ≥ 15 X + 2Y ≥ 12 3X + 2Y ≥ 24 X, Y ≥ 0

ANSWER:

The complete optimal solution is X = 6, Y = 3, Z = 48, S1 = 6, S2 = 0, S3 = 0 POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic © Cengage. Testing Powered by Cognero.

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CH 02 - An Introduction to Linear Programming TOPICS: KEYWORDS:

2.2 Graphical Solution Procedure Bloom's: Apply

44. Find the complete optimal solution to this linear programming problem. Max s.t.

5X + 3Y 2X + 3Y ≤ 30 2X + 5Y ≤ 40 6X − 5Y ≤ 0 X, Y ≥ 0

ANSWER:

The complete optimal solution is X = 15, Y = 0, Z = 75, S1 = 0, S2 = 10, S3 = 90 POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Analyze 45. Find the complete optimal solution to this linear programming problem. Max s.t.

2X + 3Y 4X + 9Y ≤ 72 10X + 11Y ≤ 110 17X + 9Y ≤ 153 X, Y ≥ 0

ANSWER:

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CH 02 - An Introduction to Linear Programming

The complete optimal solution is X = 4.304, Y = 6.087, Z = 26.87, S1 = 0, S2 = 0, S3 = 25.043 POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Analyze 46. Find the complete optimal solution to this linear programming problem. Min s.t.

3X + 3Y 12X + 4Y ≥ 48 10X + 5Y ≥ 50 4X + 8Y ≥ 32 X, Y ≥ 0

ANSWER:

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The complete optimal solution is X = 4, Y = 2, Z = 18, S1 = 8, S2 = 0, S3 = 0 POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Analyze 47. For the following linear programming problem, determine the optimal solution using the graphical solution method. Are any of the constraints redundant? If yes, identify the constraint that is redundant. Max s.t.

X + 2Y X+ Y≤3 X − 2Y ≥ 0 Y≤1 X, Y ≥ 0 ANSWER:

X = 2 and Y = 1 Yes, there is a redundant constraint; Y ≤ 1

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POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Analyze 48. Maxwell Manufacturing makes two models of felt-tip marking pens. Requirements for each lot of pens are given below. Plastic Ink assembly Molding time

Fliptop Model 3 5 5

Tiptop Model 4 4 2

Available 36 40 30

The profit for either model is $1000 per lot. a. What is the linear programming model for this problem? b. Find the optimal solution. c. Will there be excess capacity in any resource? ANSWER:

Let F = number of lots of Fliptop pens to produce T = number of lots of Tiptop pens to produce Max s.t.

1000F + 1000T 3F + 4T ≤ 36 5F + 4T ≤ 40 5F + 2T ≤ 30 F, T ≥ 0

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The complete optimal solution is F = 2, T = 7.5, Z = 9500, S1 = 0, S2 = 0, S3 = 5 c. There is an excess of 5 units of molding time available. POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.1 A Simple Maximization Problem 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Analyze 49. The Sanders Garden Shop mixes two types of grass seed into a blend. Each type of grass has been rated (per pound) according to its shade tolerance, ability to stand up to traffic, and drought resistance, as shown in the table. Type A seed costs $1 and Type B seed costs $2. Shade tolerance Traffic resistance Drought resistance

Type A 1 2 2

Type B 1 1 5

a. If the blend needs to score at least 300 points for shade tolerance, 400 points for traffic resistance, and 750 points for drought resistance, how many pounds of each seed should be in the blend? b. Which targets will be exceeded? c. How much will the blend cost? ANSWER:

a. Let A = pounds of Type A seed in the blend B = pounds of Type B seed in the blend Min s.t.

1A + 2B 1A + 1B ≥ 300 2A + 1B ≥ 400 2A + 5B ≥ 750 A, B ≥ 0

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The optimal solution is at A = 250, B = 50. b. Constraint 2 has a surplus value of 150. c. The cost is 350. POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure 2.1 A Simple Maximization Problem KEYWORDS: Bloom's: Analyze 50. Muir Manufacturing produces two popular grades of commercial carpeting among its many other products. In the coming production period, Muir needs to decide how many rolls of each grade should be produced in order to maximize profit. Each roll of Grade X carpet uses 50 units of synthetic fiber, requires 25 hours of production time, and needs 20 units of foam backing. Each roll of Grade Y carpet uses 40 units of synthetic fiber, requires 28 hours of production time, and needs 15 units of foam backing. The profit per roll of Grade X carpet is $200, and the profit per roll of Grade Y carpet is $160. In the coming production period, Muir has 3000 units of synthetic fiber available for use. Workers have been scheduled to provide at least 1800 hours of production time (overtime is a possibility). The company has 1500 units of foam backing available for use. Develop and solve a linear programming model for this problem. ANSWER: Let X = number of rolls of Grade X carpet to make Y = number of rolls of Grade Y carpet to make Max

200X + 160Y

s.t.

50X + 40Y ≤ 3000 25X + 28Y ≥ 1800 20X + 15Y ≤ 1500 X, Y ≥ 0

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The complete optimal solution is X = 30, Y = 37.5, Z = 12,000, S1 = 0, S2 = 0, S3 = 337.5 POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.01 - 2.1 IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure 2.1 A Simple Maximization Problem KEYWORDS: Bloom's: Analyze 51. Does the following linear programming problem exhibit infeasibility, unboundedness, or alternative optimal solutions? Explain. Min s.t.

3X + 3Y 1X + 2Y ≤ 16 1X + 1Y ≤ 10 5X + 3Y ≤ 45 X, Y ≥ 0

ANSWER:

The problem has alternative optimal solutions.

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POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.06 - 2.6 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.6 Special Cases KEYWORDS: Bloom's: Analyze 52. Does the following linear programming problem exhibit infeasibility, unboundedness, or alternative optimal solutions? Explain. Min s.t.

1X + 1Y 5X + 3Y ≤ 30 3X + 4Y ≥ 36 Y≤7 X, Y ≥ 0 ANSWER:

The problem is infeasible.

POINTS: DIFFICULTY:

1 Challenging

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CH 02 - An Introduction to Linear Programming LEARNING OBJECTIVES: IMS.ASWC.19.02.06 - 2.6 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.6 Special Cases KEYWORDS: Bloom's: Analyze 53. A businessman is considering opening a small specialized trucking firm. To make the firm profitable, it must have a daily trucking capacity of at least 84,000 cubic feet. Two types of trucks are appropriate for the specialized operation. Their characteristics and costs are summarized in the table below. Note that truck two requires three drivers for long haul trips. There are 41 potential drivers available, and there are facilities for at most 40 trucks. The businessman's objective is to minimize the total cost outlay for trucks. Truck Small Large

Cost $18,000 $45,000

Capacity (cu. ft.) 2,400 6,000

Drivers Needed 1 3

Solve the problem graphically and note that there are alternative optimal solutions. a. Which optimal solution uses only one type of truck? b. Which optimal solution utilizes the minimum total number of trucks? c. Which optimal solution uses the same number of small and large trucks? ANSWER:

a. 35 small, 0 large b. 5 small, 12 large c. 10 small, 10 large POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.06 - 2.6 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.6 Special Cases KEYWORDS: Bloom's: Analyze 54. Consider the following linear program: Max s.t.

60X + 43Y X + 3Y ≥ 9 6X − 2Y = 12 X + 2Y ≤ 10 X, Y ≥ 0

a. b.

Write the problem in standard form. What is the feasible region for the problem? Show that regardless of the values of the actual objective function coefficients, the optimal c. solution will occur at one of two points. Solve for these points and then determine which one maximizes the current objective function. ANSWER: a. Max 60X + 43Y s.t. X + 3Y − S1 = 9 6X − 2Y = 12 X + 2Y + S3 = 10 X, Y, S1, S3 ≥ 0 © Cengage. Testing Powered by Cognero.

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CH 02 - An Introduction to Linear Programming b. Line segment of 6X − 2Y = 12 between (22/7, 24/7) and (27/10, 21/10). c. Extreme points: (22/7, 24/7) and (27/10, 21/10). First one is optimal, giving Z = 336. POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.03 - 2.3 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.3 Extreme Points and the Optimal Solution KEYWORDS: Bloom's: Analyze 55. Solve the following linear program graphically. Max s.t.

5X + 7Y X ≤6 2X + 3Y ≤ 19 X+ Y≤8 X, Y ≥ 0 ANSWER:

From the graph below, we see that the optimal solution occurs at X = 5, Y = 3, and Z = 46.

POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure KEYWORDS: Bloom's: Analyze 56. Solve the following linear program graphically. How many extreme points exist for this problem? Min s.t.

150X + 210Y 3.8X + 1.2Y ≥ 22.8 Y≥6 Y ≤ 15

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CH 02 - An Introduction to Linear Programming 45X + 30Y = 630 X, Y ≥ 0 ANSWER:

Two extreme points exist (points A and B below). The optimal solution is X = 10, Y = 6, and Z = 2760 (point B).

POINTS: 1 DIFFICULTY: Challenging LEARNING OBJECTIVES: IMS.ASWC.19.02.02 - 2.2 IMS.ASWC.19.02.03 - 2.3 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 2.2 Graphical Solution Procedure 2.3 Extreme Points and the Optimal Solution KEYWORDS: Bloom's: Analyze 57. Solve the following linear program graphically. Max s.t.

4X + 5Y X + 3Y ≤ 22 −X + Y ≤ 4 Y≤6 2X − 5Y ≤ 0 X, Y ≥ 0 ANSWER:

Two extreme points exist (points A and B below). The optimal solution is X = 10, Y = 6, and Z = 2760 (point B).

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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution True / False 1. Classical sensitivity analysis provides no information about changes resulting from a change in the coefficient of a variable in a constraint. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.03.04 - 3.4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.4 Limitations of Classical Sensitivity Analysis KEYWORDS: Bloom's: Understand 2. The reduced cost of a variable is the dual value of the corresponding nonnegativity constraint. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.3 Sensitivity Analysis: Computer Solution KEYWORDS: Bloom's: Understand 3. When the right-hand sides of two constraints are each increased by one unit, the objective function value will be adjusted by the sum of the constraints' dual prices. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.2 Graphical Sensitivity Analysis KEYWORDS: Bloom's: Understand 4. If the range of feasibility indicates that the original amount of a resource, which was 20, can increase by 5, then the amount of the resource can increase to 25. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3 © Cengage. Testing Powered by Cognero.

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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.3 Sensitivity Analysis: Computer Solution KEYWORDS: Bloom's: Apply 5. When two or more objective function coefficients are changed simultaneously, further analysis is necessary to determine whether the optimal solution will change. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 3.2 Graphical Sensitivity Analysis KEYWORDS: Bloom's: Understand 6. The dual value and dual price are identical for a minimization problem. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.A3.02 - A3.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: Appendix 3.2 Sensitivity Analysis with Lingo KEYWORDS: Bloom's: Understand 7. A negative dual price indicates that increasing the right-hand side of the associated constraint would be detrimental to the objective. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.2 Graphical Sensitivity Analysis KEYWORDS: Bloom's: Understand 8. In order to tell the impact of a change in a constraint coefficient, the change must be made and then the model resolved. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy © Cengage. Testing Powered by Cognero.

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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution LEARNING OBJECTIVES: IMS.ASWC.19.03.04 - 3.4 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.4 Limitations of Classical Sensitivity Analysis KEYWORDS: Bloom's: Understand 9. A small change in the objective function coefficient can necessitate modifying the optimal solution. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.2 Graphical Sensitivity Analysis KEYWORDS: Bloom's: Understand 10. The dual price associated with a constraint is the change in the value of the solution per unit decrease in the right-hand side of the constraint. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: 3.2 Graphical Sensitivity Analysis KEYWORDS: Bloom's: Remember 11. For a minimization problem, a positive dual price indicates the value of the objective function will increase. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.2 Graphical Sensitivity Analysis KEYWORDS: Bloom's: Understand 12. There is a dual price for every decision variable in a model. a. True b. False ANSWER: False POINTS: 1 © Cengage. Testing Powered by Cognero.

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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.3 Sensitivity Analysis: Computer Solution 3.2 Graphical Sensitivity Analysis KEYWORDS: Bloom's: Understand 13. The amount of a sunk cost will vary depending on the values of the decision variables. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.3 Sensitivity Analysis: Computer Solution KEYWORDS: Bloom's: Understand 14. If the optimal value of a decision variable is zero and its reduced cost is zero, this indicates that alternative optimal solutions exist. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.A3.01 - A3.1 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: Appendix 3.1 Sensitivity Analysis with Excel Solver KEYWORDS: Bloom's: Understand 15. Relevant costs should be reflected in the objective function, but sunk costs should not. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.3 Sensitivity Analysis: Computer Solution KEYWORDS: Bloom's: Understand 16. If the range of feasibility for b1 is between 16 and 37, then if b1 = 22, the optimal solution will not change from the original optimal solution. a. True b. False © Cengage. Testing Powered by Cognero.

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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.3 Sensitivity Analysis: Computer Solution KEYWORDS: Bloom's: Apply 17. If the dual price for the right-hand side of a ≤ constraint is zero, there is no upper limit on its range of feasibility. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.2 Graphical Sensitivity Analysis KEYWORDS: Bloom's: Understand 18. Increasing the right-hand side of a nonbinding constraint will not cause a change in the optimal solution. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.2 Graphical Sensitivity Analysis KEYWORDS: Bloom's: Understand 19. If two or more objective function coefficients are changed simultaneously, further analysis is necessary to determine whether the optimal solution will change. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.2 Graphical Sensitivity Analysis KEYWORDS: Bloom's: Understand Multiple Choice 20. To solve a linear programming problem with thousands of variables and constraints, © Cengage. Testing Powered by Cognero.

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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution a. a personal computer can be used. b. a mainframe computer is required. c. the problem must be partitioned into subparts. d. unique software would need to be developed. ANSWER: a POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.3 Sensitivity Analysis: Computer Solution 3.1 Introduction to Sensitivity Analysis KEYWORDS: Bloom's: Remember 21. A negative dual price for a constraint in a minimization problem means a. as the right-hand side increases, the objective function value will increase. b. as the right-hand side decreases, the objective function value will increase. c. as the right-hand side increases, the objective function value will decrease. d. as the right-hand side decreases, the objective function value will decrease. ANSWER: a POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.A3.02 - A3.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: Appendix 3.2 Sensitivity Analysis with Lingo KEYWORDS: Bloom's: Understand 22. If a decision variable is not positive in the optimal solution, its reduced cost is a. what its objective function value would need to be before it could become positive. b. the amount its objective function value would need to improve before it could become positive. c. zero. d. its dual price. ANSWER: b POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.3 Sensitivity Analysis: Computer Solution KEYWORDS: Bloom's: Understand 23. A constraint with a positive slack value a. will have a positive dual price. b. will have a negative dual price. c. will have a dual price of zero. d. has no restrictions for its dual price. © Cengage. Testing Powered by Cognero.

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CH 03 - Linear Programming: Sensitivity Analysis and Interpretation of Solution ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.3 Sensitivity Analysis: Computer Solution KEYWORDS: Bloom's: Understand 24. The amount by which an objective function coefficient can change before a different set of values for the decision variables becomes optimal is the a. optimal solution. b. dual solution. c. range of optimality. d. range of feasibility. ANSWER: c POINTS: 1 DIFFICULTY: Easy LEARNING OBJECTIVES: IMS.ASWC.19.03.02 - 3.2 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.2 Graphical Sensitivity Analysis KEYWORDS: Bloom's: Remember 25. The range of feasibility measures a. the right-hand-side values for which the objective function value will not change. b. the right-hand-side values for which the values of the decision variables will not change. c. the right-hand-side values for which the dual prices will not change. d. All of these are correct. ANSWER: c POINTS: 1 DIFFICULTY: Moderate LEARNING OBJECTIVES: IMS.ASWC.19.03.03 - 3.3 NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking TOPICS: 3.3 Sensitivity Analysis: Computer Solution KEYWORDS: Bloom's: Remember 26. An objective function reflects the relevant cost of labor hours used in production rather than treating them as a sunk cost. The correct interpretation of the dual price associated with the labor hours constraint is the a. maximum premium (say for overtime) over the normal price that the company would be willing to pay. b. upper limit on the total hourly wage the company would pay. c. reduction in hours that could be sustained before the solution would change. d. number of hours by which the right-hand side can change before there is a change in the solution point. ANSWER: a POINTS: 1 DIFFICULTY: Moderate © Cengage. Testing Powered by Cognero.

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