Operations Management Midterm #1
T/F: A minimization model of a linear programming contains only surplus variables.
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T/F: A variable is a value that is usually a coefficient of a parameter in an equation.
F
T/F: First step in formulating a linear programming model is define the objective function.
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T/F: For a profit maximization problem, if the allowable increase for a coefficient in the objective function is infinite, then profits are unbounded.
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T/F: Graphical solutions to linear programming problems have a finite number of possible objective function lines.
F
T/F: If the objective function is parallel to a constraint, the constraint is infeasible.
F
T/F: If variable costs increase, but price and fixed costs are held constant, break-even will decrease.
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T/F: In both an objective function and constraint, the decision variables are represented by numbers.
F
T/F: In general, an increase in price increases the break-even point if all costs are held constant.
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T/F: Linear programming problems can model decreasing marginal returns.
F
T/F: Management science modeling techniques provide results that are known with certainty.
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T/F: Management science techniques focus primarily on observation, model construction, and implementation to find an appropriate solution to a problem.
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T/F: Most computer linear programming packages readily accept constraints entered in fractional form, such as X1/X3.
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T/F: Multiple optimal solutions exist when constraints are parallel to each other.
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T/F: Objective functions in linear programs always minimize costs.
F
T/F: Proportionality means the slope of a constraint is proportional to the slope of the objective function.
F
T/F: Sensitivity analysis can be used to determine the effect on the solution for changing several parameters at once.
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T/F: Sensitivity ranges can be computed only for the right hand sides of constraints.
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T/F: Surplus variables are only associated with minimization problems
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T/F: The equation 8xy=32 satisfies the proportionality property of linear programming.
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T/F: The first step of the management science process is to define the problem.
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T/F: The following equation represents a resource constraint for a maximization problem: X + Y >= 20.
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T/F: The optimal solution for a graphical linear programming problem is the corner point farthest from the origin.
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T/F: The sensitivity range for a constraint quantity value is the range over which the optimal vales of the decision variables do not change.
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T/F: The sensitivity range for an objective function coefficient is the range of values over which the profit does not change.
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T/F: The term big data refers to numbers of large magnitude, greater than or equal to one billion.
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T/F: The terms in the objective function or constraints are multiplicative.
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T/F: There is exactly one optimal solution point to a linear program.
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T/F: Typically, finding a corner point for the feasible region involves solving a set of three simultaneous equations.
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T/F: When the right-hand sides of two constraints are both increased by one unit, the value of the objective function will be adjusted by the sum of the constraints' prices.
F
T/F: A constraint is a linear relationship representing a restriction on decision making.
T
T/F: A key component of business analytics is the recent availability of large amounts of data.
T
T/F: A linear programming problem requires a choice between alternative courses of function.
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T/F: A management science solution can be either a recommend or information that helps a manager make a decision.
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T/F: A management science technique usually applies to a specific model type.
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T/F: A model is a mathematical representation of a problem situation including variables, parameters, and equations.
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T/F: All linear programming models exhibit a set of constraints.
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T/F: Business analytics brings together the disciplines of information systems, management science, statistics, and mathematical modeling.
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T/F: Constraints usually appear as equations that are less than, equal to, or greater than a parameter.
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T/F: Data are pieces of information from the problem environment.
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T/F: Fixed costs is the difference between total cost and total variable cost.
T
T/F: If we change the constraint quantity to a value outside the sensitivity range for that constraint quantity, the shadow price will change.
T
T/F: In the graphical approach, simultaneous equations can be used to solve for the optimal solution.
T
T/F: Linear programming is a model consisting of linear relationship representing a firm's decisions given an objective function and resource constraints.
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T/F: Linear programming models exhibit linearity among all constraint relationships and the objective function.
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T/F: Management science modeling techniques focus on model construction and problem solution.
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T/F: Managers utilize spreadsheets to conduct their own analyses in management science studies.
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T/F: Parameters are known, constant values that are usually coefficients of variables in equations.
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T/F: Sensitivity analysis allows the modeler to relax the certainty assumption;.
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T/F: Sensitivity analysis determines how a change in a parameter affects the optimal solution.
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T/F: The break-even point is the volume that equates total revenue with total costs.
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T/F: The feasible solution area contains infinite solutions to the linear programming.
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T/F: The marginal value of any scarce resource is the dollar amount one should be willing to pay for one additional unit of that scarce resource.
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T/F: The objective function always consists of either maximizing or minimizing some value.
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T/F: The objective function is a linear relationship reflecting the objective of an operation.
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T/F: The sensitivity range for a constraint quantity value is the range over which the shadow price is value.
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T/F: The sensitivity range for an objective function coefficient is the range of values over which the current optimal solution point (product mix) will remain optimal.
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T/F: The shadow price for a positive decision variable is 0.
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T/F: The term continuous is synonymous with divisible in the context of linear programming.
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T/F: The term sensitivity analysis refers to testing how a problem solution reacts to changes in one or more model parameters.
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T/F: The terms in the objective function or constraints are additive.
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T/F: The terms shadow price and dual price mean the same thing.
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T/F: Variable costs depend on the number of items produced.
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T/F: When using the graphical method, only one or four of the quadrants of an xy-axis needs to be drawn.
T
The sensitivity range for a __________ coefficient is the range of values over which the current optimal solution point (product mix) will remain optimal.
objective function
T/F: the analysis of the effect of parameter changes on the optimal solution
sensitivity analysis
T/F: The sensitivity range for a constraint quantity value is also the range over which the _______ _______ is valid.
shadow price
T/F: The reduced cost (shadow price) for a positive decision variable is...
zero
