Question 1

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 F1F1F1S1F1F1F10 400 B)P₁₂ + P₂₂ + P₃₂ F1F1F1S1F1F1F10 400 C)P₃₂ F1F1F1S1F1F1F10 400 D)P₂₃ F1F1F1S1F1F1F10 400

Accepted Answer

The given formula P_ij denotes the production of product i in period j. To indicate the limit on production of the company's three products in period 2, we need to add the production of all three products in that period and set it less than or equal to 400. In option B, P₁₂ + P₂₂ + P₃₂ F1F1F1S1 is the sum of the production of all three products in period 2, and it is set to be less than or equal to 400. Thus, option B is the best choice.

Question 2

It is improper to combine manufacturing costs and overtime costs in the same objective function.

Accepted Answer

Manufacturing costs and overtime costs can both be components of the total cost objective in operations research or cost optimization problems, as they are both relevant to the overall cost of production.

Question 3

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 F1F1F1S1F1F1F10 P₁₄ F1F1F1S1F1F1F10 100; P₁₄ F1F1F1S1F1F1F10 P₁₃ F1F1F1S1F1F1F10 100 B)P₁₃ F1F1F1S1F1F1F10 P₁₄ F1F1F1S1F1F1F10 100; P₁₃ F1F1F1S1F1F1F10 P₁₄ F1F1F1S1F1F1F10 100 C)P₁₃ F1F1F1S1F1F1F10 P₁₄ F1F1F1S1F1F1F10 100; P₁₄ F1F1F1S1F1F1F10 P₁₃ F1F1F1S1F1F1F10 100 D)P₁₃ F1F1F1S1F1F1F10 P₁₄ F1F1F1S1F1F1F10 100; P₁₄ F1F1F1S1F1F1F10 P₁₃ F1F1F1S1F1F1F10 100

Accepted Answer

A

Question 4

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 F1F1F1S1F1F1F10 T₃₂ F1F1F1S1F1F1F10 T₃₄ F1F1F1S1F1F1F10 A₃ = 2500 B)T₃₁ + T₃₂ F1F1F1S1F1F1F10 T₂₃ F1F1F1S1F1F1F10 T₄₃ + A₃ = 2500 C)A₃ + T₁₃ + T₂₃ F1F1F1S1F1F1F10 T₃₂ F1F1F1S1F1F1F10 T₃₄ = 2500 D)A₃ F1F1F1S1F1F1F10 T₁₃ F1F1F1S1F1F1F10 T₂₃ + T₃₂ + T₃₄ = 2500

Accepted Answer

The answer of Department 3 has 2500 hours.Transfers are allowed...

Question 5

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 6

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

The answer of The production scheduling problem modeled in the...

Question 7

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

Modern revenue management systems help organizations manage all aspects of revenue optimization, including pricing strategies, reservation policies, and short-term supply decisions. Therefore, all of the given alternatives are correct.

Question 8

Media selection problems can maximize exposure quality and use number of customers reached as a constraint,or maximize the number of customers reached and use exposure quality as a constraint.

Accepted Answer

Media selection problems can be approached with either of these constraints. It depends on the marketing objective and the target audience. If the objective is to promote a high-end brand to a specific niche market, exposure quality may be the priority. On the other hand, if the objective is to reach the mass market, maximizing the number of customers reached may be more important.

Question 9

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 F1F1F1S1F1F1F10 production F1F1F1S1F1F1F10 ending inventory = demand
C)beginning inventory + production F1F1F1S1F1F1F10 ending inventory = demand
D)beginning inventory F1F1F1S1F1F1F10 production F1F1F1S1F1F1F10 ending inventory > demand

Accepted Answer

The demand requirement constraint for a time period takes the form of beginning inventory plus production minus ending inventory equaling the demand. This is because the amount produced in a time period plus the beginning inventory minus the ending inventory must equal the demand for that time period. Therefore, choice C is the correct form for the demand requirement constraint.

Question 10

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 answer of The dual price for a constraint that...

Question 11

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 times...

Question 12

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

Marketing research is the systematic gathering and analysis of information related to the market and consumers. By conducting research on consumer characteristics, attitudes, and preferences, companies can better understand their target audience and tailor their products and marketing strategies to meet their needs and expectations. Client satisfaction processing, capital budgeting, and production planning do not directly involve studying consumer characteristics, attitudes, and preferences.

Question 13

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 workshifts

Accepted Answer

Blending problems occur when resources must be mixed in order to produce a desired result. This is the case with option B, where two or more resources must be blended to make a certain product. The other options do not involve this type of mixing.

Question 14

Judgment is an acceptable way of obtaining input for a linear programming model.

Accepted Answer

Judgment can be used to obtain input for a linear programming model if quantitative data is not available or if the input values need to be adjusted based on expert opinion. However, it is important to note that judgment should be used in combination with other methods, such as data analysis, to ensure that the model is accurate and reliable.

Question 15

If an LP problem is not correctly formulated,the computer software will indicate it is infeasible when trying to solve it.

Accepted Answer

The answer of If an LP problem is not correctly...

Question 16

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 answer of Let M be the number of units...

Question 17

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 F1F1F1S1F1F1F10 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 F1F1F1S1F1F1F1010.
D)the dual price for the HD constraint is F1F1F1S1F1F1F1010.

Accepted Answer

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

Question 18

Portfolio selection problems should acknowledge both risk and return.

Accepted Answer

Portfolio selection involves choosing a combination of assets that aims to maximize returns while managing risk. Therefore, it is necessary to consider both risk and return when making investment decisions.

Question 19

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 at least 60% of the money must be invested in Pacific Oil. To model this, we need to set up an inequality in which the coefficient of the P variable is at least 0.6. Options A and C have coefficients of 0.4 and do not meet the 60% requirement. Option B has a negative coefficient for A, which does not make sense in this context. Option D has a coefficient of -0.6 for A, which is equivalent to saying that at least 60% of the money must be invested in P. Therefore, option D is the correct choice for modeling this constraint.

Question 20

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 F1F1F1S1F1F1F10 5
B)A F1F1F1S1F1F1F10 .5B + C F1F1F1S1F1F1F10 0
C).5A F1F1F1S1F1F1F10 B F1F1F1S1F1F1F10 .5C F1F1F1S1F1F1F10 0
D)F1F1F1S1F1F1F10.5A + .5B F1F1F1S1F1F1F10 .5C F1F1F1S1F1F1F10 0

Accepted Answer

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

Quiz 9: Linear Programming Applications in Marketing, Finance, and Operations Management

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,

It is improper to combine manufacturing costs and overtime costs in the same objective function.

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,

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

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?

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

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

Media selection problems can maximize exposure quality and use number of customers reached as a constraint,or maximize the number of customers reached and use exposure quality as a constraint.

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

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

Media selection problems usually determine

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

Blending problems arise whenever a manager must decide how to

Judgment is an acceptable way of obtaining input for a linear programming model.

If an LP problem is not correctly formulated,the computer software will indicate it is infeasible when trying to solve it.

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

Portfolio selection problems should acknowledge both risk and return.

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

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

Quiz 9: Linear Programming Applications in Marketing, Finance, and Operations Management

If Pij = 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,

It is improper to combine manufacturing costs and overtime costs in the same objective function.

Let Pij = 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,

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

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?

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

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

Media selection problems can maximize exposure quality and use number of customers reached as a constraint,or maximize the number of customers reached and use exposure quality as a constraint.

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

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

Media selection problems usually determine

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

Blending problems arise whenever a manager must decide how to

Judgment is an acceptable way of obtaining input for a linear programming model.

If an LP problem is not correctly formulated,the computer software will indicate it is infeasible when trying to solve it.

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

Portfolio selection problems should acknowledge both risk and return.

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

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,

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,

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