Exam 4: Linear Programming Applications

If a real-world problem is correctly formulated, it is not possible to have alternative optimal solutions.

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 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

An LP model for a large-scale production scheduling problem involving numerous products, machines, and time periods can require thousands of decision variables and constraints.

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

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

To properly interpret dual prices, one must know how costs were allocated in the objective function.

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

Portfolio selection problems should acknowledge both risk and return.

Production constraints frequently take the form: beginning inventory + sales - production = ending inventory

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

Media selection problems usually determine

For the marketing research problem presented in the textbook, the research firm's objective is to conduct the market survey so as to meet the client's needs at a minimum cost.

A constraint with non-zero slack will have a positive dual price, and a constraint with non-zero surplus will have a negative dual price.

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,

The objective function for portfolio selection problems usually is maximization of expected return or

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.

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

For a portfolio selection problem with the objective of maximizing expected return, the dual price for the available funds constraint provides information about the

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?