Exam 9: Optimization and Simulation Modeling

Computer simulations should be avoided for validating proposed decision models.

Optimization always implies finding the maximum point of a mathematical function.

Which Microsoft Excel tool can be used to develop linear programming solutions?

The focus in numerical simulations is the aggregate behavior associated with managers' decisions.

Maximizing transportation costs between production facilities and customer locations or distribution centers is a common application of linear programming.

Identify three applications (types of problems)of linear programming.

A constraint that is not binding has been completely used.

Which of the following is not a common application of a simulation?

Sam's Sawmill makes two products.One product is a wood bench (B)and the other product is a wood stool (S).Sam has a sawmill,so having the right material on hand is never a problem.However,production is limited.Sam's brother Chris is the carpenter,and he cannot work more than 240 hours a month.It takes Chris 4 hours to make a bench and 3 hours to make a stool.Sam had a limited budget,so he installed a small paint booth for staining the products.Sam does the painting,but he only has 100 hours a month available.It takes Sam 2 hours to paint a bench and 1 hour to paint a stool.Sam makes $7 for every bench and $5 profit for every stool. What is the profit at the corner points of the feasible region? What point maximizes the objective function?

Describe how a simulation can be used to validate models.

Common spreadsheet applications are not adequate for performing relevant or useful simulations.

The intersection point of two constraints in an LP solution is obtained using what method?

Slack in a constraint means that additional units of the constraint are available.

The goal of operations research techniques is to optimize organizational performance.

Although recent simulation programs do not require knowledge of a programming language,they do require that users have a basic understanding of what?

The Excel function "=RAND()" will generate uniformly distributed pseudorandom numbers that are:

For a company that makes short-term loans,20 minutes are required to review the loan,and 30 minutes to check credit; 10 employees who can check credit and 5 employees who can review loans are available,and it costs $50 for each loan.Which of the following would be included in the objective function?

Simulation models are often used in decision making because testing proposed new operating procedures in an actual operation can be expensive.

A computer simulation is seldom appropriate if system dynamics are extremely complex.

Identify three key values found on an Excel answer report.