Principle of Management Science
What is said to exist when total demand equals total supply in a transportation problem?
A balanced problem
Which of the following is part of the determination of EOQ?
Annual Demand
The objective of a ________ system is to reduce costs by integrating all of the operations of a firm.
ERP
Another name for the transportation problem is the logistics problem. (True or False)
False
In a transportation problem, each destination must be supplied by one and only one source. (True or False)
False
In general, linear programming is unable to solve complex labor planning as the objective function is usually not definable. (True or False)
False
In the term linear programming, the word programming comes from the phrase "computer programming." (True or False)
False
Safety stock is ignored when computing the reorder point. (True or False)
False
The purpose of the EOQ model is to achieve a balance between the cost of holding inventory and the cost of stockouts. (True or False)
False
The transshipment problem is a maximization problem. (True of False)
False
There are no limitations on the number of constraints or variables that can be graphed to solve an LP problem. (True of False)
False
When two or more constraints conflict with one another, we have a condition called unboundedness. (True of False)
False
Which of the following is not one of the steps in formulating a linear program?
Graph the constraints to determine the feasible region.
The "point at which to reorder" depends directly on which of the following?
Lead-time
A widely used mathematical programming technique designed to help managers and decision making relative to resource allocation is called
Linear programming
Using linear programming to maximize audience exposure in an advertising campaign is an example of the type of linear programming application known as
Media selection
What type of problems use LP to decide how much of each product to make, given a series of resource restrictions?
Product mix
Extra inventory that is used to avoid stockouts is known as
Safety Stock
Which of the following statements is true regarding the labor planning problem?
The decision variables can include how many full- and part-time workers to use.
The shipping problem in LP is also called the
Transportation problem
A marketing research linear programming model can help a researcher structure the least expensive, statistically meaningful sample. (True or False)
True
A traveling salesperson might use the shortest route technique to minimize the distance traveled to reach one of his/her customers. (True or False)
True
A typical transportation problem may ask the question, "How many of X should be shipped to point E from source A?" (True or False)
True
Assignment problems involve determining the most efficient assignment of people to projects, salesmen to territories, contracts to bidders, and so on. (True or False)
True
If a linear programming problem has alternate solutions, the order in which you enter the constraints may affect the particular solution found. (True or False)
True
Inventory is such an expensive asset that it may account for as much as 50 percent of a firm's invested capital. (True or False)
True
Management resources that need control include machinery usage, labor volume, money spent, time used, warehouse space used, and material usage. (True of False)
True
Sensitivity analysis enables us to look at the effects of changing the coefficients in the objective function, one at a time. (True or False)
True
The economic order quantity helps one estimate the optimal number of units to purchase with each order. (True or False)
True
The linear programming transportation model allows us to solve problems where supply does not equal demand. (True or False)
True
The shortest-route technique might be used by someone planning a vacation in order to minimize the required amount of driving. (True or False)
True
The term surplus is associated with > constraints. (True of False)
True
Transportation models may be used when a firm is trying to decide where to locate a new facility. (True or False)
True
We may begin the maximal-flow technique by picking an arbitrary path through the network. (True or False)
True
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
an unbounded solution.
Sensitivity analysis of EOQ refers to
analysis of how much the EOQ will change if different input values are used.
A line in a network that may represent a path or a route is called a(n)
arc
The shortest-route technique would best be used to
determine the path for a truck making frequent but repeatable drops.
Transportation models can be used for which of the following decisions?
facility location
What is another name for blending problems?
ingredient problems
Linear programming is usually used by managers involved in portfolio selection to
maximize return on investment.
What is the objective in the truck loading problem?
maximize the value of the load shipped
If your goal was to construct a network in which all points were connected and the distance between them was as short as possible, the technique that you would use is
minimal-spanning tree
In making inventory decisions, the purpose of the basic EOQ model is to
minimize the sum of carrying costs and ordering costs.
A feasible solution to a linear programming problem
must satisfy all of the problem's constraints simultaneously.
The corner point solution method
requires that the profit from all corners of the feasible region be compared.
Which of the following does not represent a factor a manager might typically consider when employing linear programming for a production scheduling?
risk assessment
When formulating transportation LP problems, the objective function usually deals with the
shipping cost or distances associated with transporting goods.
Which of the following is not a use of inventory?
the translucent function
The two most common objectives for the assignment problem are the minimization of
total cost or total time