Exam 1: Introduction

Problem solving encompasses both the identification of a problem and the action to resolve it.

​Define three forms of models and provide an example of each.

Decision alternatives

The feasible solution is the best solution possible for a mathematical model.

​Define and contrast the terms feasible solution, infeasible solution and optimal solution.

​Explain the difference between quantitative and qualitative analysis from the manager's point of view.

There is a fixed cost of $50,000 to start a production process. Once the process has begun, the variable cost per unit is $25. The revenue per unit is projected to be $45. a.Write an expression for total cost. b.Write an expression for total revenue. c.Write an expression for total profit. d.Find the break-even point.

Decision criteria

A manufacturer makes two products, doors and windows. Each must be processed through two work areas. Work area #1 has 60 hours of available production time per week. Work area #2 has 48 hours of available production time per week. Manufacturing of a door requires 4 hours in work area #1 and 2 hours in work area #2. Manufacturing of a window requires 2 hours in work area #1 and 4 hours in work area #2. Profit is $8 per door and $6 per window. a.​Define decision variables that will tell how many units to build (doors and windows) per week. b.Develop an objective function that will maximize total profit per week. c.Develop production constraints for work area #1 and #2.

A computer rework center has the capacity to rework 300 computers per day. The expected number of computers needing to be reworked per day is 225. The center is paid $26 for each computer reworked. The fixed cost of renting the reworking equipment is $250 per day. Work space rents for $150 per day. The cost of material is $18 per computer and labor costs $3 per computer. What is the break-even number of computers reworked per day?

The terms 'stochastic' and 'deterministic' have the same meaning in quantitative analysis.

The quantitative analysis approach requires

​What steps of the problem solving process are involved in decision making?

The most successful quantitative analysis will separate the analyst from the managerial team until after the problem is fully structured.

A feasible solution is one that satisfies at least one of the constraints in the problem.

A company seeks to maximize profit subject to limited availability of man-hours. Man-hours is a controllable input.

Inputs to a quantitative model

The process of decision making is more limited than that of problem solving.

Uncontrollable inputs are the decision variables for a model.

A university schedules summer school courses based on anticipated enrollment. The cost for faculty compensation, laboratories, student services, and allocated overhead for a computer class is $8500. If students pay $920 to enroll in the course, how large would enrollment have to be for the university to break even?