Principles of management science exam 2

must satisfy all of the problem's constraints simultaneously.

A feasible solution to a linear programming problem _______

Arc

A line in a network that may represent a path or a route is called a

Linear Programming

A widely used mathematical programming technique designed to help managers and decision making relative to resource allocation is called

Safety Stock

Extra inventory that is used to avoid stockouts is known as

minimal-spanning tree

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

an unbounded solution.

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

minimize the sum of carrying costs and ordering costs.

In making inventory decisions, the purpose of the basic EOQ model is to

maximize return on investment.

Linear programming is usually used by managers involved in portfolio selection to

analysis of how much the EOQ will change if different input values are used.

Sensitivity analysis of EOQ refers to

True

T or F A marketing research linear programming model can help a researcher structure the least expensive, statistically meaningful sample.

True

T or F A traveling salesperson might use the shortest route technique to minimize the distance traveled to reach one of his/her customers.

True

T or F A typical transportation problem may ask the question, "How many of X should be shipped to point E from source A?"

False

T or F Another name for the transportation problem is the logistics problem.

True

T or F Assignment problems involve determining the most efficient assignment of people to projects, salesmen to territories, contracts to bidders, and so on.

True

T or F If a linear programming problem has alternate solutions, the order in which you enter the constraints may affect the particular solution found.

False

T or F In a transportation problem, each destination must be supplied by one and only one source.

False

T or F In general, linear programming is unable to solve complex labor planning as the objective function is usually not definable.

False

T or F In the term linear programming, the word programming comes from the phrase "computer programming."

True

T or F Inventory is such an expensive asset that it may account for as much as 50 percent of a firm's invested capital.

True

T or F Management resources that need control include machinery usage, labor volume, money spent, time used, warehouse space used, and material usage.

False

T or F Safety stock is ignored when computing the reorder point.

True

T or F Sensitivity analysis enables us to look at the effects of changing the coefficients in the objective function, one at a time.

True

T or F The economic order quantity helps one estimate the optimal number of units to purchase with each order.

True

T or F The linear programming transportation model allows us to solve problems where supply does not equal demand.

False

T or F The purpose of the EOQ model is to achieve a balance between the cost of holding inventory and the cost of stockouts.

True

T or F The shortest-route technique might be used by someone planning a vacation in order to minimize the required amount of driving.

True

T or F The term surplus is associated with constraints.

False

T or F The transshipment problem is a maximization problem.

False

T or F There are no limitations on the number of constraints or variables that can be graphed to solve an LP problem.

True

T or F Transportation models may be used when a firm is trying to decide where to locate a new facility.

True

T or F We may begin the maximal-flow technique by picking an arbitrary path through the network.

False

T or F When two or more constraints conflict with one another, we have a condition called unboundedness.

Lead-Time

The "point at which to reorder" depends directly on which of the following?

requires that the profit from all corners of the feasible region be compared.

The corner point solution method

ERP

The objective of a ________ system is to reduce costs by integrating all of the operations of a firm.

transportation problem.

The shipping problem in LP is also called the

determine the path for a truck making frequent but repeatable drops.

The shortest-route technique would best be used to

total costs or total time.

The two most common objectives for the assignment problem are the minimization of

facility location

Transportation models can be used for which of the following decisions?

Media Selection

Using linear programming to maximize audience exposure in an advertising campaign is an example of the type of linear programming application known as

ingredient problems

What is another name for blending problems?

a balanced problem

What is said to exist when total demand equals total supply in a transportation problem?

maximize the value of the load shipped

What is the objective in the truck loading problem?

Product Mix

What type of problems use LP to decide how much of each product to make, given a series of resource restrictions?

shipping cost or distances associated with transporting goods.

When formulating transportation LP problems, the objective function usually deals with the

Risk Assessment

Which of the following does not represent a factor a manager might typically consider when employing linear programming for a production scheduling?

the translucent function

Which of the following is not a use of inventory?

Graph the constraints to determine the feasible region.

Which of the following is not one of the steps in formulating a linear program?

annual demand

Which of the following is part of the determination of EOQ?

The decision variables can include how many full- and part-time workers to use.

Which of the following statements is true regarding the labor planning problem?