Question 1

​The production scheduling problem modeled in the textbook involves capacity constraints on all of the following types of resources except
A) ​material.
B) ​labor.
C) ​machine.
D) ​storage.

Accepted Answer

Material is not a capacity constraint in the production scheduling problem modeled in the textbook.

Question 2

Let A, B, and C be the amounts invested in companies A, B, and C. If no more than 50% of the total investment can be in company B, then
A) B ≤ 5
B) A − .5B + C ≤ 0
C) .5A − B − .5C ≤ 0
D) −.5A + .5B − .5C ≤ 0

Accepted Answer

The answer of Let A, B, and C be the...

Question 3

The Tots Toys Company is trying to schedule production of two very popular toys for the next three months: a rocking horse and a scooter. Information about both toys is given below.   Develop a model that would tell the company how many of each toy to produce during each month. You are to minimize total cost. Inventory cost will be levied on any items in inventory on June 30, July 31, or August 31 after demand for the month has been satisfied. Your model should make use of the relationship
Beginning Inventory + Production − Demand = Ending Inventory
for each month. The company wants to end the summer with 150 rocking horses and 60 scooters as beginning inventory for Sept. 1. Don't forget to define your decision variables.

Accepted Answer

The answer of The Tots Toys Company is trying to...

Question 4

Tots Toys makes a plastic tricycle that is composed of three major components: a handlebar-front wheel-pedal assembly, a seat and frame unit, and rear wheels. The company has orders for 12,000 of these tricycles. Current schedules yield the following information.  The company obviously does not have the resources available to manufacture everything needed for the completion of 12000 tricycles so has gathered purchase information for each component. Develop a linear programming model to tell the company how many of each component should be manufactured and how many should be purchased in order to provide 12000 fully completed tricycles at the minimum cost.

Accepted Answer

The answer of Tots Toys makes a plastic tricycle that...

Question 5

A marketing research application uses the variable HD to represent the number of homeowners interviewed during the day. The objective function minimizes the cost of interviewing this and other categories and there is a constraint that HD ≥ 100. The solution indicates that interviewing another homeowner during the day will increase costs by 10.00. What do you know?
A) the objective function coefficient of HD is 10.
B) the dual price for the HD constraint is 10.
C) the objective function coefficient of HD is −10.
D) the dual price for the HD constraint is −10.

Accepted Answer

The answer of A marketing research application uses the variable...

Question 6

If P_ij = the production of product i in period j, then to indicate that the limit on production of the company's three products in period 2 is 400, A) P₂₁ + P₂₂ + P₂₃ ≤ 400 B) P₁₂ + P₂₂ + P₃₂ ≤ 400 C) P₃₂ ≤ 400 D) P₂₃ ≤ 400

Accepted Answer

The answer of If P_ij = the production of product...

Question 7

The dual price for a constraint that compares funds used with funds available is .058. This means that
A) the cost of additional funds is 5.8%.
B) if more funds can be obtained at a rate of 5.5%, some should be.
C) no more funds are needed.
D) the objective was to minimize.

Accepted Answer

The dual price of .058 indicates the value of an additional unit of resource (funds) in the objective function. If funds can be obtained at a lower rate (5.5%), it is beneficial to acquire more since the cost is less than the value they add.

Question 8

Media selection problems usually determine
A) how many times to use each media source.
B) the coverage provided by each media source.
C) the cost of each advertising exposure.
D) the relative value of each medium.

Accepted Answer

The answer of Media selection problems usually determine
A) how many...

Question 9

​A mutual fund manager must decide how much money to invest in Atlantic Oil (A) and how much to invest in Pacific Oil (P). At least 60% of the money invested in the two oil companies must be in Pacific Oil. A correct modeling of this constraint is
A) ​0.4A + 0.6P > 0.
B) ​-0.4A + 0.6P > 0.
C) ​0.6A + 0.4P > 0.
D) ​-0.6A + 0.4P > 0.

Accepted Answer

The constraint states that the investment in Pacific Oil should be at least 60% of the total investment. This can be written as 0.6(A+P) <= P. Simplifying, we get 0.4A >= -0.4P, which can be rearranged as -0.6A + 0.4P > 0. Therefore, the correct modeling of the constraint is option D.

Question 10

​Blending problems arise whenever a manager must decide how to
A) ​mix several different asset types in one investment strategy.
B) ​mix two or more resources to produce one or more products.
C) ​combine the results of two or more research studies into one.
D) ​allocate workers with different skill levels to various work shifts.

Accepted Answer

Blending problems involve mixing different resources to achieve a desired outcome, such as blending raw materials to make a product or blending different types of labor to staff work shifts. Mixing asset types in an investment strategy or combining research studies may involve combining different inputs, but these do not necessarily involve the physical combination of resources.

Question 11

Modern revenue management systems maximize revenue potential for an organization by helping to manage
A) pricing strategies.
B) reservation policies.
C) short-term supply decisions.
D) All of the alternatives are correct.

Accepted Answer

Revenue management systems help an organization to manage pricing strategies, reservation policies, and short-term supply decisions in order to maximize revenue potential. Therefore, all of the given alternatives are correct.

Question 12

Department 3 has 2500 hours. Transfers are allowed to departments 2 and 4, and from departments 1 and 2. If A_i measures the labor hours allocated to department i and T_ij the hours transferred from department i to department j, then A) T₁₃ + T₂₃ − T₃₂ − T₃₄ − A₃ = 2500 B) T₃₁ + T₃₂ − T₂₃ − T₄₃ + A₃ = 2500 C) A₃ + T₁₃ + T₂₃ − T₃₂ − T₃₄ = 2500 D) A₃ − T₁₃ − T₂₃ + T₃₂ + T₃₄ = 2500

Accepted Answer

The correct equation for calculating the net hours in department 3 after transfers is to start with the initial hours allocated to department 3 (A₃), subtract hours transferred out to departments 1 and 2 (T₁₃ and T₂₃), and add hours transferred in from departments 2 and 4 (T₃₂ and T₃₄). This results in the net hours being equal to 2500.

Question 13

Let P_ij = the production of product i in period j. To specify that production of product 1 in period 3 and in period 4 differs by no more than 100 units, A) P₁₃ − P₁₄ ≤ 100; P₁₄ − P₁₃ ≤ 100 B) P₁₃ − P₁₄ ≤ 100; P₁₃ − P₁₄ ≥ 100 C) P₁₃ − P₁₄ ≤ 100; P₁₄ − P₁₃ ≥ 100 D) P₁₃ − P₁₄ ≥ 100; P₁₄ − P₁₃ ≥ 100

Accepted Answer

The first inequality ensures that the production of product 1 in period 3 is at most 100 units more than the production of product 1 in period 4. The second inequality ensures that the production of product 1 in period 4 is at most 100 units more than the production of product 1 in period 3.

Question 14

Information on a prospective investment for Wells Financial Services is given below.  In each period, funds available for investment come from two sources: loan funds and income from the previous period's investment. Expenses, or cash outflows, in each period must include repayment of the previous period's loan plus 8.5% interest, and the current payroll payment. In addition, to end the planning horizon, investment income from period 4 (at 110% of the investment) must be sufficient to cover the loan plus interest from period 4. The difference in these two quantities represents net income, and is to be maximized. How much should be borrowed and how much should be invested each period?

Accepted Answer

The answer of Information on a prospective investment for Wells...

Question 15

To study consumer characteristics, attitudes, and preferences, a company would engage in
A) client satisfaction processing.
B) marketing research.
C) capital budgeting.
D) production planning.

Accepted Answer

The study of consumer characteristics, attitudes, and preferences is part of marketing research, which is focused on understanding the needs and wants of customers. Client satisfaction processing, capital budgeting, and production planning are not directly related to understanding consumer behavior.

Question 16

?In a production scheduling LP, the demand requirement constraint for a time period takes the form
A) ?beginning inventory + production + ending inventory > demand.
B) ?beginning inventory -production + ending inventory = demand.
C) ?beginning inventory + production - ending inventory = demand.
D) ?beginning inventory - production - ending inventory > demand.

Accepted Answer

The demand requirement constraint ensures that the sum of beginning inventory and production minus ending inventory meets the demand.

Question 17

An ad campaign for a new snack chip will be conducted in a limited geographical area and can use TV time, radio time, and newspaper ads. Information about each medium is shown below.  If the number of TV ads cannot exceed the number of radio ads by more than 4, and if the advertising budget is $10000, develop the model that will maximize the number reached and achieve an exposure quality if at least 1000.

Accepted Answer

The answer of An ad campaign for a new snack...

Question 18

​Which of the operations management applications modeled in the text has an objective function that minimizes the sum of manufacturing costs, purchasing costs, and overtime costs?
A) ​make-or-buy decision
B) ​blending
C) ​production scheduling
D) ​workforce assignment

Accepted Answer

The answer of ​Which of the operations management applications modeled...

Question 19

A&C Distributors is a company that represents many outdoor products companies and schedules deliveries to discount stores, garden centers, and hardware stores. Currently, scheduling needs to be done for two lawn sprinklers, the Water Wave and Spring Shower models. Requirements for shipment to a warehouse for a national chain of garden centers are shown below. Let S_ij be the number of units of sprinkler i shipped in month j, where i = 1 or 2, and j = 1, 2, or 3. Let W_ij be the number of sprinklers that are at the warehouse at the end of a month, in excess of the minimum requirement. a Write the portion of the objective function that minimizes shipping costs. b.An inventory cost is assessed against this ending inventory. Give the portion of the objective function that represents inventory cost. c.There will be three constraints that guarantee, for each month, that the total number of sprinklers shipped will not exceed the shipping capacity. Write these three constraints. d.There are six constraints that work with inventory and the number of units shipped, making sure that enough sprinklers are shipped to meet the minimum requirements. Write these six constraints.

Accepted Answer

The answer of A&C Distributors is a company that represents...

Question 20

Let M be the number of units to make and B be the number of units to buy. If it costs $2 to make a unit and $3 to buy a unit and 4000 units are needed, the objective function is
A) Max 2M + 3B
B) Min 4000 (M + B)
C) Max 8000M + 12000B
D) Min 2M + 3B

Accepted Answer

The objective is to minimize the cost, which is $2 per unit made and $3 per unit bought, so the function is Min 2M + 3B.

Quiz 4: Linear Programming Applications in Marketing, Finance, and Operations Management

The production scheduling problem modeled in the textbook involves capacity constraints on all of the following types of resources except

Let A, B, and C be the amounts invested in companies A, B, and C. If no more than 50% of the total investment can be in company B, then

If P_ij = the production of product i in period j, then to indicate that the limit on production of the company's three products in period 2 is 400,

The dual price for a constraint that compares funds used with funds available is .058. This means that

Media selection problems usually determine

A mutual fund manager must decide how much money to invest in Atlantic Oil (A) and how much to invest in Pacific Oil (P) . At least 60% of the money invested in the two oil companies must be in Pacific Oil. A correct modeling of this constraint is

Blending problems arise whenever a manager must decide how to

Modern revenue management systems maximize revenue potential for an organization by helping to manage

Department 3 has 2500 hours. Transfers are allowed to departments 2 and 4, and from departments 1 and 2. If A_i measures the labor hours allocated to department i and T_ij the hours transferred from department i to department j, then

Let P_ij = the production of product i in period j. To specify that production of product 1 in period 3 and in period 4 differs by no more than 100 units,

To study consumer characteristics, attitudes, and preferences, a company would engage in

?In a production scheduling LP, the demand requirement constraint for a time period takes the form

Which of the operations management applications modeled in the text has an objective function that minimizes the sum of manufacturing costs, purchasing costs, and overtime costs?

Let M be the number of units to make and B be the number of units to buy. If it costs $2 to make a unit and $3 to buy a unit and 4000 units are needed, the objective function is

Quiz 4: Linear Programming Applications in Marketing, Finance, and Operations Management

​The production scheduling problem modeled in the textbook involves capacity constraints on all of the following types of resources except