BANA2082 Modules 9 & 10

Use the applet "Optimal Point in Feasible Region" to answer the following questions. (a)What is the profit that can be achieved by manufacturing the maximum number of Deluxe Bags without violating constraints? (b)What is the profit that can be achieved by manufacturing the maximum number of Standard Bags without violating constraints? (c)What is the maximum profit that can be achieved without violating constraints?

(a) $4,860 (b) $7,080 (c) $7,668

Use the applet "Feasible Region" to answer the following questions. (a)Which constraint results in a least upper bound for the optimal number of Deluxe Bags? (b)Which constraint results in a least upper bound for the optimal number of Standard Bags? (c)Which constraint could be removed without affecting the feasible solution region?

(a) Inspection and Packaging (b) Finishing (c) Sewing

The reduced cost for a decision variable that appears in a Sensitivity Report indicates the change in the optimal objective function value that results from changing the right-hand side of the nonnegativity constraint from _____.

0 to 1

The company identified in Chapter 12, Analytics in Action, is

General Electric

_____ is the situation in which no solution to the linear programming problem satisfies all the constraints

Infeasibility

Rob is a financial manager with Sharez, an investment advisory company. He must select specific investmentsfor example, stocks and bondsfrom a variety of investment alternatives. Which of the following statements is most likely to be the objective function in this scenario?

Maximization of expected return

A canned food manufacturer has its manufacturing plants in three locations across a state. Their product has to be transported to 3 central distribution centers, which in turn disperse the goods to 72 stores across the state. Which of the following is most likely to be the objective function in this scenario?

Minimizing the cost of shipping goods from the plant to the store

A canned food manufacturer has its manufacturing plants in three locations across a state. Their product has to be transported to 3 central distribution centers, which in turn disperse the goods to 72 stores across the state. Which of the following visualization tools could help understand this problem better?

Network graph

Which of the following error messages is displayed in Excel Solver when attempting to solve an unbounded problem?

Objective Cell values do not converge.

_____, or modeling, is the process of translating a verbal statement of a problem into a mathematical statement.

Problem formulation

A scenario in which the optimal objective function contour line coincides with one of the binding constraint lines on the boundary of the feasible region leads to _____ solutions.

alternative optimal

A _____ refers to a constraint that can be expressed as an equality at the optimal solution

binding constraint

Rob is a financial manager with Sharez, an investment advisory company. He must select specific investmentsfor example, stocks and bondsfrom a variety of investment alternatives. Restrictions on the type of permissible investments would be a _____ in this case.

constraint

The points where constraints intersect on the boundary of the feasible region are termed as the _____.

extreme points

A(n) _____ solution satisfies all the constraint expressions simultaneously.

feasible

A mathematical function in which each variable appears in a separate term and is raised to the first power is known as a _____.

linear function

Chapter 12 focuses on

linear optimization models

The term _____ refers to the expression that defines the quantity to be maximized or minimized in a linear programming model.

objective function

In linear programming models of real problems, the occurrence of an unbounded solution means that the _____.

problem formulation is improper

The Analytics in Action example in Chapter 12 concerned

production capacity planning

Constraints are _____.

restrictions that limit the settings of the decision variables

The study of how changes in the input parameters of a linear programming problem affect the optimal solution is known as _____.

sensitivity analysis

The change in the optimal objective function value per unit increase in the right-hand side of a constraint is given by the _____.

shadow price

The reduced cost for a decision variable that appears in a Sensitivity Report refers to the _____ of the nonnegativity constraint for that variable.

shadow price

The _____ value for each less-than-or-equal-to constraint indicates the difference between the left-hand and right-hand values for a constraint.

slack

A variable subtracted from the left-hand side of a greater-than-or-equal to constraint to convert the constraint into an equality is known as a(n) _____.

surplus variable

Problems with infeasible solutions arise in practice because _____.

too many restrictions have been placed on the problem

The situation in which the value of the solution may be made infinitely large in a maximization linear programming problem or infinitely small in a minimization problem without violating any of the constraints is known as _____.

unbounded

The slack value for binding constraints is _____.

zero