lOMoARcPSD|18541965 Chapter 7 - Test bank Business Decision Analysis Tools (Northwest Missouri State University) Studocu is not sponsored or endorsed by any college or university Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 Quantitative Analysis for Management, 13e (Render et al.) Chapter 7 Linear Programming Models: Graphical and Computer Methods 1) Management resources that need control include machinery usage, labor volume, money spent, time used, warehouse space used, and material usage. Answer: TRUE Diff: Easy Topic: INTRODUCTION LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 2) In the term linear programming, the word programming comes from the phrase "computer programming." Answer: FALSE Diff: Moderate Topic: INTRODUCTION LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 3) One of the assumptions of LP is "simultaneity." Answer: FALSE Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 4) Any linear programming problem can be solved using the graphical solution procedure. Answer: FALSE Diff: Easy Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept 5) An LP formulation typically requires finding the maximum value of an objective while simultaneously maximizing usage of the resource constraints. Answer: FALSE Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Concept 6) There are no limitations on the number of constraints or variables that can be graphed to solve an LP problem. Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 Answer: FALSE Diff: Easy Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept 7) Resource restrictions are called constraints. Answer: TRUE Diff: Easy Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 8) One of the assumptions of LP is "proportionality." Answer: TRUE Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 9) The set of solution points that satisfies all of a linear programming problem's constraints simultaneously is defined as the feasible region in graphical linear programming. Answer: TRUE Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept 10) An objective function is necessary in a maximization problem but is not required in a minimization problem. Answer: FALSE Diff: Easy Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 11) In some instances, an infeasible solution may be the optimum found by the corner point method. Answer: FALSE Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept 12) The rationality assumption implies that solutions need not be in whole numbers (integers). Answer: FALSE Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 13) The solution to a linear programming problem must always lie on a constraint. Answer: TRUE Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept 14) In a linear program, the constraints must be linear, but the objective function may be nonlinear. Answer: FALSE Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 15) Resource mix problems use LP to decide how much of each product to make, given a series of resource restrictions. Answer: FALSE Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 16) The existence of non-negativity constraints in a two-variable linear program implies that we are always working in the northwest quadrant of a graph. Answer: FALSE Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept 17) The shadow price is the same as the dual price in maximization problems. Answer: TRUE Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Concept 18) The term slack is associated with ≥ constraints. Answer: FALSE Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Concept 19) The term surplus is associated with ≥ constraints. Answer: TRUE Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Concept 20) Any time that we have an isoprofit line that is parallel to a constraint, we have the possibility of multiple solutions. Answer: TRUE Diff: Moderate Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 21) If the isoprofit line is not parallel to a constraint, then the solution must be unique. Answer: TRUE Diff: Moderate Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept 22) When two or more constraints conflict with one another, we have a condition called unboundedness. Answer: FALSE Diff: Moderate Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept 23) The addition of a redundant constraint lowers the isoprofit line. Answer: FALSE Diff: Moderate Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept 24) Sensitivity analysis enables us to look at the effects of changing the coefficients in the objective function, one at a time. Answer: TRUE Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Concept 25) In a minimization problem, the isocost line is used rather than an isoprofit line. Answer: TRUE Diff: Moderate Topic: SOLVING MINIMIZATION PROBLEMS LO: 7.5: Understand the difference between minimization and maximization objective functions. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 26) Unlike a maximization problem, a two-variable minimization problem may not be solved graphically. Answer: FALSE Diff: Easy Topic: SOLVING MINIMIZATION PROBLEMS LO: 7.5: Understand the difference between minimization and maximization objective functions. AACSB: Analytical thinking Classification: Concept 27) In a minimization problem, the isocost line slides down and to the left through a feasible region to reflect decreasing costs. Answer: TRUE Diff: Moderate Topic: SOLVING MINIMIZATION PROBLEMS LO: 7.5: Understand the difference between minimization and maximization objective functions. AACSB: Analytical thinking Classification: Concept 28) When using Solver to find a solution for an LP problem, both the left-hand side and the right-hand side of your constraints must be a formula calculated using the cells containing the decision variables. Answer: FALSE Diff: Moderate Topic: SOLVING FLAIR FURNITURE'S LP PROBLEM USING QM FOR WINDOWS AND EXCEL 2016 AND EXCEL QM LO: 7.4: Use Excel spreadsheets to solve LP problems. AACSB: Analytical thinking Classification: Concept 29) If you enter inequalities such as "≤" directly into your Excel spreadsheet, you do not need to designate them when defining constraints using Solver. Answer: FALSE Diff: Moderate Topic: SOLVING FLAIR FURNITURE'S LP PROBLEM USING QM FOR WINDOWS AND EXCEL 2016 AND EXCEL QM LO: 7.4: Use Excel spreadsheets to solve LP problems. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 30) Constraints do not need to be entered one at a time when using Solver. Answer: TRUE Diff: Easy Topic: SOLVING FLAIR FURNITURE'S LP PROBLEM USING QM FOR WINDOWS AND EXCEL 2016 AND EXCEL QM LO: 7.4: Use Excel spreadsheets to solve LP problems. AACSB: Analytical thinking Classification: Concept 31) A widely used mathematical programming technique designed to help managers and decision making relative to resource allocation is called A) linear programming. B) computer programming. C) constraint programming. D) goal programming. Answer: A Diff: Easy Topic: INTRODUCTION LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 32) Which of the following is not a property of all linear programming problems? A) the presence of restrictions B) optimization of some objective C) a computer program D) alternate courses of action to choose from Answer: C Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 33) A feasible solution to a linear programming problem A) must be a corner point of the feasible region. B) must satisfy all of the problem's constraints simultaneously. C) need not satisfy all of the constraints, only the non-negativity constraints. D) must give the maximum possible profit. Answer: B Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept 34) Infeasibility in a linear programming problem occurs when A) a constraint is redundant. Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 B) more than one solution is optimal. C) the feasible region is unbounded. D) there is no solution that satisfies all the constraints given. Answer: D Diff: Moderate Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept 35) In a maximization problem, when one or more of the solution variables and the profit can be made infinitely large without violating any constraints, the linear program has A) an infeasible solution. B) an unbounded solution. C) a redundant constraint. D) alternate optimal solutions. Answer: B Diff: Moderate Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept 36) Which of the following is not a part of every linear programming problem formulation? A) an objective function B) a set of constraints C) non-negativity constraints D) a redundant constraint Answer: D Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 37) When appropriate, the optimal solution to a maximization linear programming problem can be found by graphing the feasible region and A) finding the profit at every corner point of the feasible region to see which one gives the highest value. B) moving the isoprofit lines towards the origin in a parallel fashion until the last point in the feasible region is encountered. C) locating the point that is highest on the graph. D) sliding the constraints to find the greatest point of intersection. Answer: A Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept 38) The mathematical theory behind linear programming states that an optimal solution to any problem will lie at a(n) ________ of the feasible region. A) interior point or center B) maximum point or minimum point C) corner point or extreme point D) interior point or extreme point Answer: C Diff: Easy Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept 39) Which of the following is not a property of linear programs? A) one objective function B) at least two separate feasible regions C) alternative courses of action D) one or more constraints Answer: B Diff: Easy Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 40) The corner point solution method A) will always provide one, and only one, optimum. B) will yield different results from the isoprofit line solution method. C) requires that the profit from all corners of the feasible region be compared. D) requires that all corners created by all constraints be compared. Answer: C Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept 41) When a constraint line bounding a feasible region has the same slope as an isoprofit line A) there may be more than one optimum solution. B) the problem involves redundancy. C) an error has been made in the problem formulation. D) a condition of infeasibility exists. Answer: A Diff: Moderate Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept 42) The simultaneous equation method is A) an alternative to the corner point method. B) useful only in minimization methods. C) an algebraic means for solving the intersection of two or more constraint equations. D) useful only when more than two product variables exist in a product mix problem. Answer: C Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 43) Consider the following linear programming problem: Maximize Subject to: 12X + 10Y 4X + 3Y ≤ 480 2X + 3Y ≤ 360 all variable ≥ 0 The maximum possible value for the objective function is A) 360. B) 480. C) 1520. D) 1560. Answer: C Diff: Difficult Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 44) Consider the following linear programming problem: Maximize Subject to: 4X + 10Y 3X + 4Y ≤ 480 4X + 2Y ≤ 360 all variable ≥ 0 The feasible corner points are (48,84), (0,120), (0,0), (90,0). What is the maximum possible value for the objective function? A) 1032 B) 1200 C) 360 D) 1600 Answer: B Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 45) Consider the following linear programming problem: Maximize Subject to: 5X + 6Y 4X + 2Y ≤ 420 1X + 2Y ≤ 120 all variable ≥ 0 Which of the following points (X,Y) is not a feasible corner point? A) (0,60) B) (105,0) C) (120,0) D) (100,10) Answer: C Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 46) Consider the following linear programming problem: Maximize Subject to: 5X + 6Y 4X + 2Y ≤ 420 1X + 2Y ≤ 120 all variable ≥ 0 Which of the following points (X,Y) is not feasible? A) (50,40) B) (20,50) C) (60,30) D) (90,10) Answer: A Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 47) Two models of a product — Regular (X) and Deluxe (Y) — are produced by a company. A linear programming model is used to determine the production schedule. The formulation is as follows: Maximize profit = 50X + 60Y Subject to: 8X + 10Y ≤ 800 (labor hours) X + Y ≤ 120 (total units demanded) 4X + 5Y ≤ 500 (raw materials) all variable ≥ 0 The optimal solution is X = 100, Y = 0. How many units of the regular model would be produced based on this solution? A) 0 B) 100 C) 50 D) 120 Answer: B Diff: Easy Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 48) Two models of a product — Regular (X) and Deluxe (Y) — are produced by a company. A linear programming model is used to determine the production schedule. The formulation is as follows: Maximize profit = 50X + 60Y Subject to: 8X + 10Y ≤ 800 (labor hours) X + Y ≤ 120 (total units demanded) 4X + 5Y ≤ 500 (raw materials) all variable ≥ 0 The optimal solution is X = 100, Y = 0. Which of these constraints is redundant? A) the first constraint B) the second constraint C) the third constraint D) the fourth constraint Answer: B Diff: Difficult Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Application 49) Consider the following linear programming problem: Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 Minimize Subject to: 20X + 30Y 2X + 4Y ≤ 800 6X + 3Y ≥ 300 X, Y ≥ 0 What is the optimum solution to this problem (X,Y)? A) (0,0) B) (50,0) C) (0,100) D) (400,0) Answer: B Diff: Difficult Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 50) Consider the following linear programming problem: Maximize Subject to: 20X + 30Y X + Y ≤ 80 8X + 9Y ≤ 600 3X + 2Y ≥ 400 X, Y ≥ 0 This is a special case of a linear programming problem in which A) there is no feasible solution. B) there is a redundant constraint. C) there are multiple optimal solutions. D) this cannot be solved graphically. Answer: A Diff: Difficult Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 51) Which of the following is not acceptable as a constraint in a linear programming problem (maximization)? Constraint 1 Constraint 2 Constraint 3 Constraint 4 X + XY + Y ≥ 12 X - 2Y ≤ 20 X + 3Y = 48 X + Y + Z ≤ 150 A) Constraint 1 B) Constraint 2 C) Constraint 3 D) Constraint 4 Answer: A Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Application 52) If one changes the contribution rates in the objective function of an LP A) the feasible region will change. B) the slope of the isoprofit or isocost line will change. C) the optimal solution to the LP is sure to no longer be optimal. D) the problem will no longer be linear. Answer: B Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Concept 53) Sensitivity analysis may also be called A) postoptimality analysis. B) nonparametric programming. C) preoptimality analysis. D) redundancy testing Answer: A Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 54) Sensitivity analyses are used to examine the effects of changes in A) contribution rates for each variable. B) degree space. C) the modeler. D) the degrees of freedom in the numerator Answer: A Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Concept 55) Which of the following is a basic assumption of linear programming? A) The condition of uncertainty exists. B) Independence exists for the activities. C) Proportionality exists in the objective function and constraints. D) Divisibility does not exist, allowing only integer solutions. Answer: C Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 56) If the addition of a constraint to a linear programming problem does not change the solution, the constraint is said to be A) unbounded. B) non-negative. C) infeasible. D) redundant. Answer: D Diff: Moderate Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 57) Which of the following is not an assumption of LP? A) simultaneity B) certainty C) proportionality D) divisibility Answer: A Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 58) The difference between the left-hand side and right-hand side of a less-than-or-equal-to constraint is referred to as A) surplus. B) constraint. C) slack. D) shadow price. Answer: C Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept 59) The difference between the left-hand side and right-hand side of a greater-than-or-equal-to constraint is referred to as A) surplus. B) constraint. C) slack. D) shadow price. Answer: A Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 60) A constraint with zero slack or surplus is called a A) nonbinding constraint. B) resource constraint. C) binding constraint. D) nonlinear constraint. Answer: C Diff: Easy Topic: SOLVING FLAIR FURNITURE'S LP PROBLEM USING QM FOR WINDOWS AND EXCEL 2016 AND EXCEL QM LO: 7.4: Use Excel spreadsheets to solve LP problems. AACSB: Analytical thinking Classification: Concept 61) The coefficients of the variables in the constraint equations that represent the amount of resources needed to produce one unit of the variable are called A) technological coefficients. B) objective coefficients. C) shadow prices. D) dual prices. Answer: A Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Concept 62) A constraint with positive slack or surplus is called a A) nonbinding constraint. B) resource constraint. C) binding constraint. D) nonlinear constraint. Answer: A Diff: Easy Topic: SOLVING FLAIR FURNITURE'S LP PROBLEM USING QM FOR WINDOWS AND EXCEL 2016 AND EXCEL QM LO: 7.4: Use Excel spreadsheets to solve LP problems. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 63) A straight line representing all non-negative combinations of X1 and X2 for a particular profit level is called a(n) A) objective line. B) sensitivity line. C) profit line. D) isoprofit line. Answer: D Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept 64) In order for a linear programming problem to have a unique solution, the solution must exist A) at the intersection of the non-negativity constraints. B) at the intersection of a non-negativity constraint and a resource constraint. C) at the intersection of the objective function and a constraint. D) at the intersection of two or more constraints. Answer: D Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Concept 65) In order for a linear programming problem to have multiple solutions, the solution must exist A) at the intersection of the non-negativity constraints. B) on a non-redundant constraint parallel to the objective function. C) at the intersection of the objective function and a constraint. D) at the intersection of three or more constraints. Answer: B Diff: Moderate Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 66) Consider the following linear programming problem: Maximize Subject to: 12X + 10Y 4X + 3Y ≤ 480 2X + 3Y ≤ 360 all variables ≥ 0 Which of the following points (X,Y) is feasible? A) (10,120) B) (120,10) C) (30,100) D) (60,90) Answer: C Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 67) Consider the following linear programming problem: Maximize Subject to: 5X + 6Y 4X + 2Y ≤ 420 1X + 2Y ≤ 120 all variables ≥ 0 Which of the following points (X,Y) is in the feasible region? A) (30,60) B) (105,5) C) (0,210) D) (100,10) Answer: D Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 68) Consider the following linear programming problem: Maximize Subject to: 5X + 6Y 4X + 2Y ≤ 420 1X + 2Y ≤ 120 all variables ≥ 0 Which of the following points (X,Y) is feasible? A) (50,40) B) (30,50) C) (60,30) D) (90,20) Answer: C Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 69) Which of the following is not an assumption of LP? A) certainty B) proportionality C) divisibility D) multiplicativity Answer: D Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 70) Consider the following linear programming problem: Maximize Subject to: 20X + 30Y X + Y ≤ 80 12X + 12Y ≤ 600 3X + 2Y ≤ 400 X, Y ≥ 0 This is a special case of a linear programming problem in which A) there is no feasible solution. B) there is a redundant constraint. C) there are multiple optimal solutions. D) this cannot be solved graphically. Answer: B Diff: Difficult Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept 71) Which of the following functions is not linear? A) 5X + 3Z B) 3X + 4Y + Z - 3 C) 2X + 5YZ D) Z Answer: C Diff: Easy Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Application 72) Which of the following is not one of the steps in formulating a linear program? A) Graph the constraints to determine the feasible region. B) Define the decision variables. C) Use the decision variables to write mathematical expressions for the objective function and the constraints. D) Identify the objective and the constraints. Answer: A Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 73) What type of problems use LP to decide how much of each product to make, given a series of resource restrictions? A) resource mix B) product restriction C) resource allocation D) product mix Answer: D Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Concept Consider the sensitivity report below for the problems which follow. 74) The optimal solution to this linear program is A) x1 = 34, x2 = 40. B) x1 = 6, x2 = 11. C) x1 = 7.33, x2 = 6. D) x1 = 3, x2 = 6. Answer: D Diff: Easy Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 75) Which of the following constraints are binding? A) Extrusion only B) Packing only C) Additive only D) Extrusion and Packaging Answer: D Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Concept 76) What is the increase in the objective value if 2 units of extrusion are added? A) 3 B) 6 C) 48 D) 96 Answer: B Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Application 77) What is the increase in the objective value if 2 units of packaging are added? A) 11 B) 18 C) 22 D) 36 Answer: C Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Application 78) What is the increase in the objective value if 2 units of additive are added? A) 0 B) 4 C) 12 D) 16 Answer: A Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Application 79) Consider the following linear programming problem: Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 Maximize Subject to: 10X + 30Y X + 2Y ≤ 80 8X + 16Y ≤ 640 4X + 2Y ≥ 100 X, Y ≥ 0 This is a special case of a linear programming problem in which A) there is no feasible solution. B) there is a redundant constraint. C) there are multiple optimal solutions. D) this cannot be solved graphically. Answer: B Diff: Difficult Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Application 80) Consider the following constraints from a linear programming problem: 2X + Y ≤ 200 X + 2Y ≤ 200 X, Y ≥ 0 If these are the only constraints, which of the following points (X,Y) cannot be the optimal solution? A) (0, 0) B) (0, 200) C) (0,100) D) (100, 0) Answer: B Diff: Difficult Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 81) Consider the following constraints from a linear programming problem: 2X + Y ≤ 200 X + 2Y ≤ 200 X, Y ≥ 0 If these are the only constraints, which of the following points (X,Y) cannot be the optimal solution? A) (0, 0) B) (0, 100) C) (65, 65) D) (100, 0) Answer: C Diff: Difficult Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 82) Classic New Orleans desserts include pralines, pecan pie and Bananas Foster — all three are absolutely essential to eat on any trip to the city. Chefs may quibble about this ingredient list as there are dozens of variations on each recipe, but these ingredients are common to most formulations. A recipe for a dozen pralines takes a cup of pecans, two cups of brown sugar, a cup of granulated sugar, a half teaspoon of vanilla and a tablespoon of rum. A pecan pie takes two cups of pecans, a cup of brown sugar, a cup of cane syrup, a cup of granulated sugar, a teaspoon of vanilla, and a tablespoon of rum. A recipe for Bananas Foster requires a cup of pecans, a cup of brown sugar, a cup of granulated sugar, a banana, and a tablespoon of rum and makes two servings. Bananas Foster is considered a dessert for two and is priced accordingly at $15. Your pantry has on hand 24 cups of pecans, 40 cups of brown sugar, 12 cups of cane syrup, 20 cups of granulated sugar, 40 teaspoons of vanilla, twelve bananas, and 64 tablespoons of rum. Pralines sell for $22.68 per dozen and a pecan pie costs $22.40. Which of these is an appropriate objective function? A) Max Z = $7.5BF + $11.34Pr + $11.20Pe B) Max Z = $15BF + $22.68Pr 9 $22.40Pe C) Max Z = $7.5BF + $22.68Pr + $22.40Pe D) Max Z = $15BF + $11.34Pr + $11.20Pe Answer: B Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 83) Classic New Orleans desserts include pralines, pecan pie and Bananas Foster — all three are absolutely essential to eat on any trip to the city. Chefs may quibble about this ingredient list as there are dozens of variations on each recipe, but these ingredients are common to most formulations. A recipe for a dozen pralines takes a cup of pecans, two cups of brown sugar, a cup of granulated sugar, a half teaspoon of vanilla and a tablespoon of rum. A pecan pie takes two cups of pecans, a cup of brown sugar, a cup of cane syrup, a cup of granulated sugar, a teaspoon of vanilla, and a tablespoon of rum. A recipe for Bananas Foster requires a cup of pecans, a cup of brown sugar, a cup of granulated sugar, a banana, and a tablespoon of rum and makes two servings. Bananas Foster is considered a dessert for two and is priced accordingly at $15. Your pantry has on hand 24 cups of pecans, 40 cups of brown sugar, 12 cups of cane syrup, 20 cups of granulated sugar, 40 teaspoons of vanilla, twelve bananas, and 64 tablespoons of rum. Pralines sell for $22.68 per dozen and a pecan pie costs $22.40. Which of these is an appropriate constraint? A) 1Pr + 2Pe + 1BF ≤ 24 B) 1Pr + 2Pe + 1BF ≤ 40 C) Pe ≤ 24 D) 1BF ≤ 40 Answer: A Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application 84) Classic New Orleans desserts include pralines, pecan pie and Bananas Foster — all three are absolutely essential to eat on any trip to the city. Chefs may quibble about this ingredient list as there are dozens of variations on each recipe, but these ingredients are common to most formulations. A recipe for a dozen pralines takes a cup of pecans, two cups of brown sugar, a cup of granulated sugar, a half teaspoon of vanilla and a tablespoon of rum. A pecan pie takes two cups of pecans, a cup of brown sugar, a cup of cane syrup, a cup of granulated sugar, a teaspoon of vanilla, and a tablespoon of rum. A recipe for Bananas Foster requires a cup of pecans, a cup of brown sugar, a cup of granulated sugar, a banana, and a tablespoon of rum and makes two servings. Bananas Foster is considered a dessert for two and is priced accordingly at $15. Your pantry has on hand 24 cups of pecans, 40 cups of brown sugar, 12 cups of cane syrup, 20 cups of granulated sugar, 40 teaspoons of vanilla, twelve bananas, and 64 tablespoons of rum. Pralines sell for $22.68 per dozen and a pecan pie costs $22.40. Which of these is an appropriate constraint? A) 1Pr + 2Pe + 1BF ≤ 40 B) 2Pr + 1Pe + 1BF ≤ 24 C) Pe ≤ 12 D) 1BF ≤ 40 Answer: C Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application 85) Classic New Orleans desserts include pralines, pecan pie and Bananas Foster — all three are Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 absolutely essential to eat on any trip to the city. Chefs may quibble about this ingredient list as there are dozens of variations on each recipe, but these ingredients are common to most formulations. A recipe for a dozen pralines takes a cup of pecans, two cups of brown sugar, a cup of granulated sugar, a half teaspoon of vanilla and a tablespoon of rum. A pecan pie takes two cups of pecans, a cup of brown sugar, a cup of cane syrup, a cup of granulated sugar, a teaspoon of vanilla, and a tablespoon of rum. A recipe for Bananas Foster requires a cup of pecans, a cup of brown sugar, a cup of granulated sugar, a banana, and a tablespoon of rum and makes two servings. Bananas Foster is considered a dessert for two and is priced accordingly at $15. Your pantry has on hand 24 cups of pecans, 40 cups of brown sugar, 12 cups of cane syrup, 20 cups of granulated sugar, 40 teaspoons of vanilla, twelve bananas, and 64 tablespoons of rum. Pralines sell for $22.68 per dozen and a pecan pie costs $22.40. Which of these is an appropriate constraint? A) 1Pr + 2Pe + 1BF ≤ 40 B) 2Pr + 1Pe + 1BF ≤ 24 C) Pe ≥ 12 D) BF ≥ 0 Answer: D Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 86) Classic New Orleans desserts include pralines and Bananas Foster — both are absolutely essential to eat on any trip to the city. Chefs may quibble about this ingredient list as there are dozens of variations on each recipe, but these ingredients are common to most formulations. A recipe for a dozen pralines takes a cup of pecans, two cups of brown sugar, a cup of granulated sugar, a half teaspoon of vanilla and a tablespoon of rum. A recipe for Bananas Foster requires a cup of pecans, a cup of brown sugar, a cup of granulated sugar, a banana, and a tablespoon of rum and makes two servings. Bananas Foster is considered a dessert for two and is priced accordingly at $15. Your pantry has on hand 24 cups of pecans, 40 cups of brown sugar, 12 cups of cane syrup, 20 cups of granulated sugar, 40 teaspoons of vanilla, twelve bananas, and 64 tablespoons of rum. Pralines sell for $22.68 per dozen. Your first constraint for a graphical solution has been plotted. Which constraint is it? A) the Praline constraint B) the Bananas Foster constraint C) the pecan constraint D) the brown sugar constraint Answer: D Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 87) Classic New Orleans desserts include pralines and Bananas Foster — both are absolutely essential to eat on any trip to the city. Chefs may quibble about this ingredient list as there are dozens of variations on each recipe, but these ingredients are common to most formulations. A recipe for a dozen pralines takes a cup of pecans, two cups of brown sugar, a cup of granulated sugar, a half teaspoon of vanilla and a tablespoon of rum. A recipe for Bananas Foster requires a cup of pecans, a cup of brown sugar, a cup of granulated sugar, a banana, and a tablespoon of rum and makes two servings. Bananas Foster is considered a dessert for two and is priced accordingly at $15. Your pantry has on hand 24 cups of pecans, 40 cups of brown sugar, 12 cups of cane syrup, 20 cups of granulated sugar, 40 teaspoons of vanilla, twelve bananas, and 64 tablespoons of rum. Pralines sell for $22.68 per dozen. Your first constraint for a graphical solution has been plotted. Which constraint is it? A) the Praline constraint B) the Bananas Foster constraint C) the pecan constraint D) the brown sugar constraint Answer: C Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 Classic New Orleans desserts include pralines, pecan pie and Bananas Foster — all three are absolutely essential to eat on any trip to the city. Chefs may quibble about this ingredient list as there are dozens of variations on each recipe, but these ingredients are common to most formulations. A recipe for a dozen pralines takes a cup of pecans, two cups of brown sugar, a cup of granulated sugar, a half teaspoon of vanilla and a tablespoon of rum. A pecan pie takes two cups of pecans, a cup of brown sugar, a cup of cane syrup, a cup of granulated sugar, a teaspoon of vanilla, and a tablespoon of rum. A recipe for Bananas Foster requires a cup of pecans, a cup of brown sugar, a cup of granulated sugar, a banana, and a tablespoon of rum and makes two servings. Bananas Foster is considered a dessert for two and is priced accordingly at $15. Your pantry has on hand 24 cups of pecans, 40 cups of brown sugar, 12 cups of cane syrup, 20 cups of granulated sugar, 40 teaspoons of vanilla, twelve bananas, and 64 tablespoons of rum. Pralines sell for $22.68 per dozen and a pecan pie costs $22.40. The Sensitivity Report from an Excel formulation of this problem is show below. 88) What is the most you would pay for one more cup of brown sugar? A) $0 B) $0.28 C) $$0.12 D) $0.40 Answer: B Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 89) What is the most you would pay for one more cup of pecans? A) $0 B) $0.20 C) $$0.24 D) $0.40 Answer: A Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Application 90) You don't use any of the A) pecans. B) rum. C) cane syrup. D) vanilla. Answer: C Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Application 91) You can actually take in $453.60 with this setup. If you had only one more cup of granulated sugar what could your profit be? A) $453.60 B) $454.73 C) $473.60 D) $475.72 Answer: D Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 92) You can actually take in $453.60 with this setup. Suppose your most important customer comes to you and demands you make her an order of Bananas Foster. What is your profit if you add one recipe of Bananas Foster to your production mix? A) $446.20 B) $453.60 C) $461.00 D) $473.60 Answer: D Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Application 93) A furniture company is producing two types of furniture. Product A requires 8 board feet of wood and 2 lbs of wicker. Product B requires 6 board feet of wood and 6 lbs of wicker. There are 2000 board feet of wood available for product and 1000 lbs of wicker. Product A earns a profit margin of $30 a unit and Product B earns a profit margin of $40 a unit. What should the objective function be? A) Maximize 30A + 40B B) Maximize 10A + 12B C) Maximize 14Wood + 8Wicker D) Maximize 8A + 2A + 6B + 6B Answer: A Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application 94) A furniture company is producing two types of furniture. Product A requires 8 board feet of wood and 2 lbs of wicker. Product B requires 6 board feet of wood and 6 lbs of wicker. There are 2000 board feet of wood available for product and 1000 lbs of wicker. Product A earns a profit margin of $30 a unit and Product B earns a profit margin of $40 a unit. Which of these is an appropriate constraint for Wicker? A) 30A + 40B ≤ 1000 B) 10A + 12B ≤ 1000 C) 8A + 2B ≤ 1000 D) 2A + 6B ≤ 1000 Answer: D Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 95) A furniture company is producing two types of furniture. Product A requires 8 board feet of wood and 2 lbs of wicker. Product B requires 6 board feet of wood and 6 lbs of wicker. There are 2000 board feet of wood available for product and 1000 lbs of wicker. Product A earns a profit margin of $30 a unit and Product B earns a profit margin of $40 a unit. Which of these is an appropriate constraint for Wood? A) 30A + 40B ≤ 2000 B) 8A + 6B ≤ 2000 C) 8A + 2B ≤ 2000 D) 2A + 6B ≤ 2000 Answer: B Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application 96) As a supervisor of a production department, you must decide the daily production totals of a certain product that has two models, the Deluxe and the Special. The profit on the Deluxe model is $12 per unit and the Special's profit is $10. Each model goes through two phases in the production process, and there are only 100 hours available daily at the construction stage and only 80 hours available at the finishing and inspection stage. Each Deluxe model requires 20 minutes of construction time and 10 minutes of finishing and inspection time. Each Special model requires 15 minutes of construction time and 15 minutes of finishing and inspection time. The company has also decided that the Special model must comprise at least 40 percent of the production total. What is an appropriate objective function? A) Maximize 2D + 2.5S B) Maximize 12D + 10S C) Maximize 4D + 2.5S D) Maximize 100D + 80S Answer: B Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 97) As a supervisor of a production department, you must decide the daily production totals of a certain product that has two models, the Deluxe and the Special. The profit on the Deluxe model is $12 per unit and the Special's profit is $10. Each model goes through two phases in the production process, and there are only 100 hours available daily at the construction stage and only 80 hours available at the finishing and inspection stage. Each Deluxe model requires 20 minutes of construction time and 10 minutes of finishing and inspection time. Each Special model requires 15 minutes of construction time and 15 minutes of finishing and inspection time. The company has also decided that the Special model must comprise at least 40 percent of the production total. What is an appropriate constraint for the construction time? A) 20D + 15S ≥ 6000 B) 20D + 15S ≤ 100 C) 20D + 15S ≤ 6000 D) 20D + 15S ≥ 100 Answer: C Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application 98) As a supervisor of a production department, you must decide the daily production totals of a certain product that has two models, the Deluxe and the Special. The profit on the Deluxe model is $12 per unit and the Special's profit is $10. Each model goes through two phases in the production process, and there are only 100 hours available daily at the construction stage and only 80 hours available at the finishing and inspection stage. Each Deluxe model requires 20 minutes of construction time and 10 minutes of finishing and inspection time. Each Special model requires 15 minutes of construction time and 15 minutes of finishing and inspection time. The company has also decided that the Special model must comprise at least 40 percent of the production total. What is an appropriate constraint for the finishing time? A) 10D + 15S ≤ 4800 B) 10D + 15S ≥ 100 C) 10D + 15S ≤ 80 D) 15D + 10S ≥ 100 Answer: C Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 99) As a supervisor of a production department, you must decide the daily production totals of a certain product that has two models, the Deluxe and the Special. The profit on the Deluxe model is $12 per unit and the Special's profit is $10. Each model goes through two phases in the production process, and there are only 100 hours available daily at the construction stage and only 80 hours available at the finishing and inspection stage. Each Deluxe model requires 20 minutes of construction time and 10 minutes of finishing and inspection time. Each Special model requires 15 minutes of construction time and 15 minutes of finishing and inspection time. The company has also decided that the Special model must comprise at least 40 percent of the production total. The optimal product mix should include A) 120D's. B) 120S's. C) 200D's. D) 200S's. Answer: A Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application 100) Consider the following linear program. Maximize Subject to: 30X + 10Y 3X + Y ≤ 300 X + Y ≤ 200 X ≤ 100 Y ≥ 50 X,Y ≥ 0 Which of these is NOT a corner point of the feasible region? A) (0,50) B) (50,50) C) (50,150) D) (75,50) Answer: D Diff: Difficult Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 101) Consider the following linear program: Maximize Subject to: 30X + 10Y 3X + Y ≤ 300 X + Y ≤ 200 X ≤ 100 Y ≥ 50 X,Y ≥ 0 What is the optimal solution? A) $3,000 B) $3,200 C) $3,400 D) $3,600 Answer: A Diff: Difficult Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 102) The Greatest Generation Food Company wishes to introduce a new brand of pureed readyto-eat meals (composed of pureed chicken and pureed liver meat products) that meets certain nutritional requirements. The liver-flavored product contains 1 unit of nutrient A and 2 units of nutrient B, while the chicken-flavored product contains 1 unit of nutrient A and 4 units of nutrient B. According to federal requirements, there must be at least 40 units of nutrient A and 60 units of nutrient B in a package of the new meals. In addition, the company has decided that there can be no more than 15 units of liver-flavored meat product in a package. It costs 1 cent to make a liver-flavored product and 2 cents to make a chicken-flavored product. What is an appropriate objective function for this scenario? A) Minimize L + 2C B) Maximize L + 2C C) Minimize L + C D) Maximize L + C Answer: A Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 103) The Greatest Generation Food Company wishes to introduce a new brand of pureed readyto-eat meals (composed of pureed chicken and pureed liver meat products) that meets certain nutritional requirements. The liver-flavored product contains 1 unit of nutrient A and 2 units of nutrient B, while the chicken-flavored product contains 1 unit of nutrient A and 4 units of nutrient B. According to federal requirements, there must be at least 40 units of nutrient A and 60 units of nutrient B in a package of the new meals. In addition, the company has decided that there can be no more than 15 units of liver-flavored meat product in a package. It costs 1 cent to make a liver-flavored product and 2 cents to make a chicken-flavored product. Are there any redundant constraints in this scenario? A) L + C ≤ 100 B) L + 2C ≥ 40 C) Minimize 2L + 4C ≥ 60 D) There are no redundant constraints. Answer: C Diff: Difficult Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application 104) The Greatest Generation Food Company wishes to introduce a new brand of pureed readyto-eat meals (composed of pureed chicken and pureed liver meat products) that meets certain nutritional requirements. The liver-flavored product contains 1 unit of nutrient A and 2 units of nutrient B, while the chicken-flavored product contains 1 unit of nutrient A and 4 units of nutrient B. According to federal requirements, there must be at least 40 units of nutrient A and 60 units of nutrient B in a package of the new meals. In addition, the company has decided that there can be no more than 15 units of liver-flavored meat product in a package. It costs 1 cent to make a liver-flavored product and 2 cents to make a chicken-flavored product. What is the minimum cost? A) 65 cents B) 70 cents C) 75 cents D) 80 cents Answer: A Diff: Difficult Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 105) The Greatest Generation Food Company wishes to introduce a new brand of pureed readyto-eat meals (composed of pureed chicken and pureed liver meat products) that meets certain nutritional requirements. The liver-flavored product contains 1 unit of nutrient A and 2 units of nutrient B, while the chicken-flavored product contains 1 unit of nutrient A and 4 units of nutrient B. According to federal requirements, there must be at least 40 units of nutrient A and 60 units of nutrient B in a package of the new meals. In addition, the company has decided that there can be no more than 15 units of liver-flavored meat product in a package. It costs 1 cent to make a liver-flavored product and 2 cents to make a chicken-flavored product. At what point does the optimal solution exist? A) (30,0) B) (0,40) C) (15,25) D) (0,0) Answer: C Diff: Difficult Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 106) A furniture company is producing two types of furniture. Product A requires 8 board feet of wood and 2 lbs of wicker. Product B requires 6 board feet of wood and 6 lbs of wicker. There are 2000 board feet of wood available for product and 1000 lbs of wicker. Product A earns a profit margin of $30 a unit and Product B earns a profit margin of $40 a unit. Formulate the problem as a linear program. Answer: Let X1 = number of units of Product A X2 = number of units of Product B Maximize Subject to: 30X1 + 40X2 8X1 + 6X2 ≤ 2000 2X1 + 6X2 ≤ 1000 X1, X2 ≥ 0 Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 107) As a supervisor of a production department, you must decide the daily production totals of a certain product that has two models, the Deluxe and the Special. The profit on the Deluxe model is $12 per unit and the Special's profit is $10. Each model goes through two phases in the production process, and there are only 100 hours available daily at the construction stage and only 80 hours available at the finishing and inspection stage. Each Deluxe model requires 20 minutes of construction time and 10 minutes of finishing and inspection time. Each Special model requires 15 minutes of construction time and 15 minutes of finishing and inspection time. The company has also decided that the Special model must comprise at least 40 percent of the production total. (a) Formulate this as a linear programming problem. (b) Find the solution that gives the maximum profit. Answer: (a) Let X1 = number of Deluxe models X2 = number of Special models Maximize Subject to: 12X1 + 10X2 1/3 X1 + 1/4 X2 ≤ 100 1/6 X1 + 1/4 X2 ≤ 80 -0.4X1 + 0.6X2 ≥ 0 X1, X2 ≥ 0 (b) Optimal solution: X1 = 120, X2 = 240 Profit = $3,840 Diff: Difficult Topic: FORMULATING LP PROBLEMS and GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.2: Formulate a linear programming problem algebraically; LO 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 108) The Fido Dog Food Company wishes to introduce a new brand of dog biscuits (composed of chicken and liver-flavored biscuits) that meets certain nutritional requirements. The liverflavored biscuits contain 1 unit of nutrient A and 2 units of nutrient B, while the chickenflavored ones contain 1 unit of nutrient A and 4 units of nutrient B. According to federal requirements, there must be at least 40 units of nutrient A and 60 units of nutrient B in a package of the new biscuit mix. In addition, the company has decided that there can be no more than 15 liver-flavored biscuits in a package. If it costs 1 cent to make a liver-flavored biscuit and 2 cents to make a chicken-flavored one, what is the optimal product mix for a package of the biscuits in order to minimize the firm's cost? (a) Formulate this as a linear programming problem. (b) Find the optimal solution for this problem graphically. (c) Are any constraints redundant? If so, which one or ones? (d) What is the total cost of a package of dog biscuits using the optimal mix? Answer: (a) Let X1 = number of liver-flavored biscuits in a package X2 = number of chicken-flavored biscuits in a package Minimize Subject to: X1 + 2X2 X1 + X2 ≥ 40 2X1 + 4X2 ≥ 60 X1 ≤ 15 X1, X2 ≥ 0 (b) Corner points (0,40) and (15,25) Optimal solution is (15,25) with cost of 65. (c) 2X1 + 4X2 ≥ 60 is redundant. (d) minimum cost = 65 cents Diff: Difficult Topic: FORMULATING LP PROBLEMS and GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.2: Formulate a linear programming problem algebraically; LO 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 109) Consider the following linear program: Maximize Subject to: 30X + 10Y 3X + Y ≤ 300 X + Y ≤ 200 X ≤ 100 Y ≥ 50 X,Y ≥ 0 (a) Solve the problem graphically. Is there more than one optimal solution? Explain. (b) Are there any redundant constraints? Answer: (a) Corner points (0,50), (0,200), (50,50), (75,75), (50,150) Optimum solutions: (75,75) and (50,150). Both yield a profit of $3,000. (b) The constraint X1 ≤ 100 is redundant since 3X1 + X2 ≤ 300 also means that X1 cannot exceed 100. Diff: Difficult Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 110) Solve the following linear programming problem using the corner point method: Maximize Subject to: 10X + 1Y 4X + 3Y ≤ 36 2X + 4Y ≤ 40 Y≥3 X, Y ≥ 0 Answer: Feasible corner points (X,Y): (0,3) (0,10) (2.4,8.8) (6.75,3) Maximum profit 70.5 at (6.75,3). Diff: Difficult Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 111) Solve the following linear programming problem using the corner point method: Maximize Subject to: 3X + 5Y 4X + 4Y ≤ 48 1X + 2Y ≤ 20 Y≥2 X, Y ≥ 0 Answer: Feasible corner points (X,Y): (0,2) (0,10) (4,8) (10,2) Maximum profit is 52 at (4,8). Diff: Difficult Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 112) Billy Penny is trying to determine how many units of two types of lawn mowers to produce each day. One of these is the Standard model, while the other is the Deluxe model. The profit per unit on the Standard model is $60, while the profit per unit on the Deluxe model is $40. The Standard model requires 20 minutes of assembly time, while the Deluxe model requires 35 minutes of assembly time. The Standard model requires 10 minutes of inspection time, while the Deluxe model requires 15 minutes of inspection time. The company must fill an order for 6 Deluxe models. There are 450 minutes of assembly time and 180 minutes of inspection time available each day. How many units of each product should be manufactured to maximize profits? Let X = number of Standard models to produce Y = number of Deluxe models to produce Maximize Subject to: 60X + 40Y 20X + 35Y ≤ 450 10X + 15Y ≤ 180 Y≥6 X, Y ≥ 0 Answer: Maximum profit is $780 by producing 9 Standard and 6 Deluxe models. Diff: Difficult Topic: FORMULATING LP PROBLEMS and GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.2: Formulate a linear programming problem algebraically; LO 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 113) Two advertising media are being considered for promotion of a product. Radio ads cost $400 each, while newspaper ads cost $600 each. The total budget is $7,200 per week. The total number of ads should be at least 15, with at least 2 of each type. Each newspaper ad reaches 6,000 people, while each radio ad reaches 2,000 people. The company wishes to reach as many people as possible while meeting all the constraints stated. How many ads of each type should be placed? Answer: Let R = number of radio ads placed N = number of newspaper ads placed Maximize Subject to: 2000R + 6000N R + N ≥ 15 400R + 600N ≤ 7200 R≥2 N≥2 R, N ≥ 0 Feasible corner points (R,N): (9,6) (13,2) (15,2) Maximum exposure 54,000 with 9 radio and 6 newspaper ads. Diff: Difficult Topic: FORMULATING LP PROBLEMS and GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.2: Formulate a linear programming problem algebraically; LO 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 114) Suppose a linear programming (minimization) problem has been solved and the optimal value of the objective function is $300. Suppose an additional constraint is added to this problem. Explain how this might affect each of the following: (a) the feasible region. (b) the optimal value of the objective function. Answer: (a) Adding a new constraint will reduce the size of the feasible region unless it is a redundant constraint. It can never make the feasible region any larger. However, it could make the problem infeasible. (b) A new constraint can only reduce the size of the feasible region; therefore, the value of the objective function will either increase or remain the same. If the original solution is still feasible, it will remain the optimal solution. Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM and FOUR SPECIAL CASES IN LP LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods; LO 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 115) Upon retirement, Mr. Klaws started to make two types of children's wooden toys in his shop—Wuns and Toos. Wuns yield a variable profit of $9 each and Toos have a contribution margin of $8 each. Even though his electric saw overheats, he can make 7 Wuns or 14 Toos each day. Since he doesn't have equipment for drying the lacquer finish he puts on the toys, the drying operation limits him to 16 Wuns or 8 Toos per day. (a) Solve this problem using the corner point method. (b) For what profit ratios would the optimum solution remain the optimum solution? Answer: Let X1 = number of wuns/day X2 = number of toos/day Maximize Subject to: 9X1 + 8X2 2X1 + 1X2 ≤ 14 1X1 + 2X2 ≤ 16 X1, X2 ≥ 0 (a) Corner points (0,0), (7,0), (0,8), (4,6) (b) Optimum profit $84 at (4,6). Diff: Difficult Topic: FORMULATING LP PROBLEMS and GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.2: Formulate a linear programming problem algebraically; LO 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 116) Susanna Nanna is the production manager for a furniture manufacturing company. The company produces tables (X) and chairs (Y). Each table generates a profit of $80 and requires 3 hours of assembly time and 4 hours of finishing time. Each chair generates $50 of profit and requires 3 hours of assembly time and 2 hours of finishing time. There are 360 hours of assembly time and 240 hours of finishing time available each month. The following linear programming problem represents this situation. Maximize 80X + 50Y Subject to: 3X + 3Y ≤ 360 4X + 2Y ≤ 240 X, Y ≥ 0 The optimal solution is X = 0, and Y = 120. (a) What would the maximum possible profit be? (b) How many hours of assembly time would be used to maximize profit? (c) If a new constraint, 2X + 2Y ≤ 400, were added, what would happen to the maximum possible profit? Answer: (a) 6000, (b) 360, (c) It would not change. Diff: Difficult Topic: FORMULATING LP PROBLEMS and GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.2: Formulate a linear programming problem algebraically; LO 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 117) As a supervisor of a production department, you must decide the daily production totals of a certain product that has two models, the Deluxe and the Special. The profit on the Deluxe model is $12 per unit, and the Special's profit is $10. Each model goes through two phases in the production process, and there are only 100 hours available daily at the construction stage and only 80 hours available at the finishing and inspection stage. Each Deluxe model requires 20 minutes of construction time and 10 minutes of finishing and inspection time. Each Special model requires 15 minutes of construction time and 15 minutes of finishing and inspection time. The company has also decided that the Special model must comprise at most 60 percent of the production total. Formulate this as a linear programming problem. Answer: Let X1 = number of Deluxe models produced X2 = number of Special models produced Maximize Subject to: 12X1 + 10X2 1/3X1 + 1/4X2 ≤ 100 1/6X1 + 1/4X2 ≤ 80 -1.5X1 + X2 ≤ 0 X1, X2 ≥ 0 Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application 118) Determine where the following two constraints intersect. 5X + 23Y ≤ 1000 10X + 26Y ≤ 1600 Answer: (108, 20) Diff: Easy Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 119) Determine where the following two constraints intersect. 2X - 4Y = 800 −X + 6Y ≥ -200 Answer: (500, 50) Diff: Easy Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application 120) Two advertising media are being considered for promotion of a product. Radio ads cost $400 each, while newspaper ads cost $600 each. The total budget is $7,200 per week. The total Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 number of ads should be at least 15, with at least 2 of each type, and there should be no more than 19 ads in total. The company does not want the number of newspaper ads to exceed the number of radio ads by more than 25 percent. Each newspaper ad reaches 6,000 people, 50 percent of whom will respond; while each radio ad reaches 2,000 people, 20 percent of whom will respond. The company wishes to reach as many respondents as possible while meeting all the constraints stated. Develop the appropriate LP model for determining the number of ads of each type that should be placed. Answer: Let R = number of radio ads placed N = number of newspaper ads placed Maximize or 0.20*2000R + 0.50*6000N 400R + 3000N R + N ≥ 15 R + N ≤ 19 400R + 600N ≤ 7200 1.25R - N ≤ 7200 R≥2 N≥2 R, N ≥ 0 Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application Subject to: Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 121) Suppose a linear programming (maximization) problem has been solved and the optimal value of the objective function is $300. Suppose a constraint is removed from this problem. Explain how this might affect each of the following: (a) the feasible region. (b) the optimal value of the objective function. Answer: (a) Removing a constraint may, if the constraint is not redundant, increase the size of the feasible region. It can never make the feasible region any smaller. If the constraint was active in the solution, removing it will also result in a new optimal solution. However, removing an essential constraint could cause the problem to become unbounded. (b) Removal of a constraint can only increase or leave the same the size of the feasible region; therefore, the value of the objective function will either increase or remain the same, assuming the problem has not become unbounded. Diff: Moderate Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM and FOUR SPECIAL CASES IN LP LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods; LO 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Application 122) Consider the following constraints from a two-variable linear program. 1. X ≥ 0 2. Y ≥ 0 3. X + Y ≤ 50 If the optimal corner point lies at the intersection of constraints (2) and (3), what is the optimal solution (X, Y)? Answer: Y = 0, so X + 0 = 50, or X = 50. Thus the solution is (50, 0). Diff: Easy Topic: GRAPHICAL SOLUTION TO AN LP PROBLEM LO: 7.3: Graphically solve any LP problem that has only two variables by both the corner point and the isoprofit line methods. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 123) Consider a product mix problem, where the decision involves determining the optimal production levels for products X and Y. A unit of X requires 4 hours of labor in department 1 and 6 hours of labor in department 2. A unit of Y requires 3 hours of labor in department 1 and 8 hours of labor in department 2. Currently, 1000 hours of labor time are available in department 1, and 1200 hours of labor time are available in department 2. Furthermore, 400 additional hours of cross-trained workers are available to assign to either department (or split between both). Each unit of X sold returns a $50 profit, while each unit of Y sold returns a $60 profit. All units produced can be sold. Formulate this problem as a linear program. (Hint: Consider introducing other decision variables in addition to the production amounts for X and Y.) Answer: Let X = the number of units of product X sold Y = the number of units of product Y sold C1= the number of cross-trained labor hours allocated to department 1 C2= the number of cross-trained labor hours allocated to department 2 Maximize: 50X + 60Y Subject to: 4X + 3Y - C1 ≤ 1000 6X + 8Y - C2 ≤ 1200 C1 + C2 ≤ 400 X, Y ≥ 0 Diff: Difficult Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 124) A plastic parts supplier produces two types of plastic parts used for electronics. Type 1 requires 30 minutes of labor and 45 minutes of machine time. Type 2 requires 60 minutes of machine hours and 75 minutes of labor. There are 600 hours available per week of labor and 800 machine hours available. The demand for custom molds and plastic parts are identical. Type 1 has a profit margin of $25 a unit and Type 2 has a profit margin of $45 a unit. The plastic parts supplier must choose the quantity of Product A and Product B to produce which maximizes profit. (a) Formulate this as a linear programming problem. (b) Find the solution that gives the maximum profit using either QM for Windows or Excel. Answer: (a) Let X1 = number of units of Product A produced X2 = number of units of Product B produced Maximize Subject to: 25X1 + 45X2 0.50X1 + 1.25X2 ≤ 600 0.75X1 + X2 ≤ 800 X1, X2 ≥ 0 (b) X1 = 914.28, X2 = 114.28 Diff: Moderate Topic: SOLVING FLAIR FURNITURE'S LP PROBLEM USING QM FOR WINDOWS AND EXCEL 2016 AND EXCEL QM LO: 7.2: Formulate a linear programming problem algebraically; LO 7.4: Use Excel spreadsheets to solve LP problems. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 125) A company can decide how many additional labor hours to acquire for a given week. Subcontractor workers will only work a maximum of 20 hours a week. The company must produce at least 200 units of product A, 300 units of product B, and 400 units of product C. In 1 hour of work, worker 1 can produce 15 units of product A, 10 units of product B, and 30 units of product C. Worker 2 can produce 5 units of product A, 20 units of product B, and 35 units of product C. Worker 3 can produce 20 units of product A, 15 units of product B, and 25 units of product C. Worker 1 demands a salary of $50/hr, worker 2 demands a salary of $40/hr, and worker 3 demands a salary of $45/hr. The company must choose how many hours they should contract with each worker to meet their production requirements and minimize labor cost. (a) Formulate this as a linear programming problem. (b) Find the optimal solution. Answer: (a) Let X1 = Worker 1 hours X2 = Worker 2 hours X3 = Worker 3 hours Minimize Subject to: 50X1 + 40X2 + 45X3 15X1 + 5X2 + 20X3 ≥ 200 10X1 + 20X2 + 15X3 ≥ 300 30X1 + 35X2 + 25X3 ≥ 400 X1, X2, X3 ≤ 20 X1, X2, X3 ≥ 0 (b) X1 = 0, X2 = 9.23, X3 = 7.69 Diff: Difficult Topic: SOLVING FLAIR FURNITURE'S LP PROBLEM USING QM FOR WINDOWS AND EXCEL 2016 AND EXCEL QM LO: 7.2: Formulate a linear programming problem algebraically; LO 7.4: Use Excel spreadsheets to solve LP problems. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 126) Consider the sensitivity report below: (a) Which constraints are binding? (b) Which constraints are non-binding? (c) What is the increase in the objective value if 3 Corn are added? Answer: (a) Corn and Sugar (b) Jugs and Hours (c) 15 Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 127) Consider the sensitivity report below: (a) Which constraints are binding? (b) Which constraints are non-binding? (c) What is the increase in the objective value if 3 Coffee are added? Answer: (a) Floor and Budget (b) Coffee (c) 0 Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Application Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 128) Consider the sensitivity report above. (a) Which constraints are binding? (b) What is the increase in the objective value if 30 Cabbage are added? Answer: (a) Cabbage and Jars (b) 4.50 Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Application 129) Consider the sensitivity report above. (a) If the current solution shows a maximum profit of $200, what is the profit if Chow Chow is increased from $2.25 to $2.50? (b) If the current solution shows a maximum profit of $200, what is the profit if Tomato is decreased from $1.95 to $1.75? Answer: (a) a $24 increase in profit to $224 (b) a $38.40 decrease in profit from $200 down to $161.60 Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Application 130) Define dual price. Answer: The dual price for a constraint is the improvement in the objective function value that results from a one-unit increase in the right-hand side of the constraint. Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 131) One basic assumption of linear programming is proportionality. Explain its need. Answer: Rates of consumption exist and are constant. For example, if the production of 1 unit requires 4 units of a resource, then if 10 units are produced, 40 units of the resource are required. A change in the variable value results in a proportional change in the objective function value. Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 132) List the 7 properties of linear programs. Answer: 1. One objective function 2. One or more constraints 3. Alternative courses of action 4. Objective function and constraints are linear – proportionality and divisibility 5. Certainty 6. Divisibility 7. Nonnegative variables Diff: Difficult Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 133) One basic assumption of linear programming is divisibility. Explain its need. Answer: Solutions can have fractional values and need not be whole numbers. If fractional values would not make sense, then integer programming would be required. Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 134) Define infeasibility with respect to an LP solution. Answer: This occurs when there is no solution that can satisfy all constraints simultaneously. Diff: Moderate Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 135) Define unboundedness with respect to an LP solution. Answer: This occurs when a linear program has no finite solution. The result implies that the formulation is missing one or more crucial constraints. Diff: Moderate Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept 136) Define alternate optimal solutions with respect to an LP solution. Answer: More than one optimal solution point exists because the objective function is parallel to a binding constraint. Diff: Moderate Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept 137) How does the case of alternate optimal solutions, as a special case in linear programming, compare to the two other special cases of infeasibility and unboundedness? Answer: With multiple alternate solutions, any of those answers is correct. In the other two cases, no single answer can be generated. Alternate solutions can occur when a problem is correctly formulated whereas the other two cases most likely have an incorrect formulation. Diff: Moderate Topic: FOUR SPECIAL CASES IN LP LO: 7.6: Understand special issues in LP such as infeasibility, unboundedness, redundancy, and alternative optimal solutions. AACSB: Analytical thinking Classification: Concept 138) Compare the shadow price to the dual price. Answer: For maximization problems, the shadow and dual prices are equal, but for minimization problems, the shadow price will be the negative of the dual price. Diff: Moderate Topic: SENSITIVITY ANALYSIS LO: 7.7: Understand the role of sensitivity analysis. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com) lOMoARcPSD|18541965 139) One basic assumption of linear programming is certainty. What does this imply and how reasonable is this assumption? Answer: The exact values of numbers in the objective function and constraints are known and do not change. Answers may vary as to how reasonable it is. For a classic product mix problem you are expressing confidence in your knowledge of the bill of materials and inventory levels entering the planning period as well as costs and selling prices. Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 140) One basic assumption of linear programming is non-negativity. What does this imply and how reasonable is this assumption? Answer: This assumption states that only positive values for decision variables make sense. From a practical standpoint, if negative values were permissible, it would permit finished goods to be disassembled or deconstructed in some way as to provide more resources to make finished goods of a different kind. Diff: Moderate Topic: REQUIREMENTS OF A LINEAR PROGRAMMING PROBLEM LO: 7.1: Identify the basic assumptions and properties of linear programming (LP). AACSB: Analytical thinking Classification: Concept 141) What is George Dantzig's contribution to linear programming? Answer: George Dantzig was an Air Force mathematician assigned to work on logistics problems. He saw that many problems involving limited resources and more than one demand could be set up in terms of a series of equations and inequalities, and he subsequently developed the simplex algorithm for solving these problems. Although early applications of linear programming were military in nature, industrial applications rapidly became apparent with the widespread use of business computers. The simplex algorithm developed by Dantzig is still the basis for much of the software used for solving linear programs today. Diff: Moderate Topic: FORMULATING LP PROBLEMS LO: 7.2: Formulate a linear programming problem algebraically. AACSB: Analytical thinking Classification: Concept Downloaded by ??c V? (ducvu0712@gmail.com)