BDAT Exam 3 quiz questions
Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per year and the lead-time is 5 days. At the moment, Mark orders 200 units each time he places an order. However, an inventory analysis suggested using EOQ. How much would Mark save if he uses EOQ? Assume there are no discounts offered, so the total purchase cost is irrelevant in this case.
$320
Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per year and the lead-time is 5 days. If Mark orders 200 units each time he places an order, what would his total ordering cost be for the year?
$720
Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per year and the lead-time is 5 days. If Mark uses EOQ to order inventory, what would the reorder point (ROP) be?
50
Which of the following statements concerning the transshipment problem are false?
Any units shipped from one origin point must all go to the same destination point.
A small furniture manufacturer produces tables and chairs. Each product must go through three stages of the manufacturing process: assembly, finishing, and inspection. Each table requires 3 hours of assembly, 2 hours of finishing, and 1 hour of inspection. Each chair requires 2 hours of assembly, 2 hours of finishing, and 1 hour of inspection. The profit per table is $120 while the profit per chair is $80. Currently, each week there are 200 hours of assembly time available, 180 hours of finishing time, and 40 hours of inspection time. Linear programming is to be used to develop a production schedule. Define the variables as follows: T = number of tables produced each week C = number of chairs produced each week In this production problem, what would the objective function be?
Maximize 120T + 80C
A small furniture manufacturer produces tables and chairs. Each product must go through three stages of the manufacturing process: assembly, finishing, and inspection. Each table requires 3 hours of assembly, 2 hours of finishing, and 1 hour of inspection. Each chair requires 2 hours of assembly, 2 hours of finishing, and 1 hour of inspection. The profit per table is $120 while the profit per chair is $80. Currently, each week there are 200 hours of assembly time available, 180 hours of finishing time, and 40 hours of inspection time. Linear programming is to be used to develop a production schedule. Define the variables as follows: T = number of tables produced each week C = number of chairs produced each week In this production problem, which of the following would be a necessary constraint in the problem?
T + C ≤ 40
When using a general LP model for transportation problems, if there are 4 sources and 3 destinations, which of the following statements is true?
There are typically 12 decision variables and 7 constraints.
What is said to exist when total demand equals total supply in a transportation problem?
a balanced problem.
Which of the following is not a property of all linear programming problems?
a computer program.
Which of the following best describes what inventory is? Inventory
a) is any stored resource used to satisfy current or future need. b)includes raw materials, work-in-process, and finished goods. c) levels for finished goods are a direct function of demand. d) needs from raw materials through finished goods can be reasonably determined, once finished goods demand is determined.
Typical resources of an organization include
a) machinery usage. b) labor volume. c) warehouse space utilization. d) raw material usage.
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.
Which of the following is part of the determination of EOQ?
annual demand.
Transportation models can be used for which of the following decisions?
facility location.
When appropriate, the optimal solution to a maximization linear programming problem can be found by graphing the feasible region and
finding the profit at every corner point of the feasible region to see which one gives the highest value.
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.
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.
Which of the following does not represent a factor a manager might typically consider when employing linear programming for a production scheduling?
risk assessment.
Infeasibility in a linear programming problem occurs when
there is no solution that satisfies all the constraints given.
The two most common objectives for the assignment problem are the minimization of:
total costs or total time.