Midterm 304 Summer Descriptive Analytics

By how much would the profit contribution of product A has to increase before it will be profitable to produce A? (Above info used)

$10

The ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $5,000. Each unit produced can be sold for $20.00. ABC incurs a variable cost of $10.00 per unit. What is ABC's monthly break-even amount in dollars?

$10,000

Suppose that we force the production of one unit of product A. The new objective function value will be (Above info used)

$915

Which of the following is an equation to determine the break-even point in dollars?

(BEP) * (total variable cost) + fixed cost

The constraint for a given resource is given by the following equation:2X1+ 3XZ <= 20 If X1 : 5 and X2:3, how many units of this resource are unused?

1

The constraint for a given resource is given by the following equation:2X1+ 3X2 <=20. If X1 =5 and X2= 3, how many units of this resource are unused?

1

___________ can be used to check whether simultaneous changes in RHS or oFC values can be analyzed by using the current sensitivity report.

100% rule

The constraint for a given resource is given by the following equation:2X1+ 3X2 >=20. If X1 =5 and X2=4 how many units of this resource are unused?

2

The constraint for a given resource is given by the following equation:2X1+ 3XZ >=20 If X1 : 5 and X2:4 how many units of this resource are unused?

2

A production manager wants to determine how many units of each product to produce weekly tomaximize weekly profits. Production requirements for the products are shown in the followingtable.ProductMaterial I(lbs.)Material 20bs.)Labor fhours)AJ24BI42C5none3.5Material 1 costs $7 apound, material2 costs $5 apound, and labor costs $15 per hour. ProductA sells for $101 a unit, product B sells for $67 a unit, and product C sells for $97.50 a unit. Each week there are 300 pounds of material 1; 400 pounds of material 2; and 200 hours of labor. The output of product A should not be more than one-half of the total number of units produced.Moreover, there is a standing order of l0 units of product C each week.FonnulationMax l0A + l0B + 10C Subject to:3A + B + 5C <=300 (constraint #l)2A+ 48 <=400 (constraint#2)4A+ 2B + 3.5C <= 200 (constraint #3)C >=10 (constraint #4). A,B,C >=0 what constraints are binding?

3 and 4

The ABC Corporation is considering introducing a new product, which will require buying newequipment for a monthly payment of $5,000. Each unit produced can be sold for $20.00. ABC incurs avariable cost of $10.00 per unit. How many units must ABC sell each month to break even?

500 units

The ABC Corporation is considering introducing a new product, which will require buying new equipment for a monthly payment of $5,000. Each unit produced can be sold for $20.00. ABC incurs a variable cost of $ 1 0.00 per unit. Suppose that ABC would like to realize a monthly profit of $50,000.How many units must they sell each month to realize this profit?

5500 units

What is the optimal objective function value? (Above info used)

925

Max 3X1 + 3X2 Subject to: 2X1+ 3X2<=10 (constraint #1) 3X1 + 2X2 <=20 (constraint #2) X1 >= 5 (constraint #3) X1, X2 >=0 (non-negativity) Refer to the spreadsheet above. What formula should be entered in cell D3 to compute total profitability?

=B2*B3 + C2*C3

What formula should be entered in cell E4 to compute total profitability?

=B3*B5 + C3*C5

Refer to the spreadsheet above. Which equation should be entered in cell D8 to compute the consumption of resource 3 (i.e., constraint #3)?

=SUMPRODUCT(B2 :C2,B8 : C8)

What formula should be entered in cell D9 to compute the amount of resource 2 that is consumed?

=SUMPRODUCT(B3 : C3,89:C9)

Refer to the spreadsheet above. Which cell(s) specifies the "changing cells" in Solver?

B2:C2

Which of the following is an equation to determine the break-even point (BEP) in units?

BEP = fixed cost / (selling price per unit - variable cost per unit)

Suppose that the objective function coefficient for product C increases by $8. What impact will this have on the current values of the optimal solution?

Current solution will change.

Refer to the spreadsheet above. Which cell(s) designates the objective function as specified in "Solver"?

D3

Refer to the spreadsheet above. Which equation should be entered in cell F8 to compute the amount by which the minimal requirement of constraint #3 has been exceeded?

D8-E8

What cell reference designates the Target Cell in "Solver"?

E4

Refer to the spreadsheet above. Which equation should be entered in cell F6 to compute the unused resources of constraint #l?

E6-D6

Suppose that the production manager has an additional 100 pounds of material l. What impact will this have on the current optimal objective function value? (Above info used)

an increase of $100

Suppose that the production manager procures an additional 10 labor hours. What impact will this have on the current optimal objective function value? (Above info used)

an increase of $50

"Solver" typically generates which of the following report(s)?

answer report, sensitivity analysis report, limits report

Which cell(s) are the Changing Cells as designated by "Solver"?

b3:C3

Which of the following variables is considered random or probabilistic?

future interest rates

Which of the following variables is considered non-random or deterministic?

last year's income

Consider the following linear programming model:Max X12 +X2+ 3X3Subject to:X1 +X2 <=3X 1 +X2 <=1Xl, X2 >=0This problem violates which of the following assumptions?

linearity

The media selection problem can have which of the following objectives?

maximizing audience exposure, minimizing advertising costs

ln amulti-period production scheduling application, the objective function is to:

minimize production and inventory costs

The marketing research problem has which of the following objectives?

minimizing interview costs

In a multi-period production scheduling application, which equation describes the relationship between demand, production, and inventory?

productiont - demandt + inventoryt-1= inventory

Consider the following linear programming model:Max 2X1+ 3X2 Subject to:x1<=2, x2<=3, x1 <=1, This linear programming model has:

redundant constraint

The break-even volume (BEP) occurs at the point where:

total revenue= total cost