Exam 1: Introduction

The relationship d = 5000  25p describes what happens to demand (d)as price (p)varies.Here,price can vary between $10 and $50. A)How many units can be sold at the $10 price? How many can be sold at the $50 price? B)Model the expression for total revenue. C)Consider prices of $20, $30, and $40. Which price alternative will maximize total revenue? What are the values for demand and revenue at this price?

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

George Dantzig is important in the history of management science because he developed

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

The decision making process includes implementation and evaluation of the decision.

A toy train layout designed to represent an actual railyard is an example of an analog model.

In this portion of an Excel spreadsheet,the user has given values for selling price,the costs,and a sample volume.Give the cell formula for a.cell E12, break-even volume. b.cell E16, total revenue. c.cell E17, total cost. d.cell E19, profit/loss.

Decision criteria

Explain the relationship among model development,model accuracy,and the ability to obtain a solution from a model.

Identification and definition of a problem

Organizers of an Internet training session will charge participants $150 to attend.It costs $3000 to reserve the room,hire the instructor,bring in the equipment,and advertise.Assume it costs $25 per student for the organizers to provide the course materials. a.How many students would have to attend for the company to break even? b.If the trainers think, realistically, that 20 people will attend, then what price should be charged per person for the organization to break even?

In quantitative analysis,the optimal solution is the mathematically-best solution.

Inputs to a quantitative model

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

If you are deciding to buy either machine A,B,or C with the objective of minimizing the sum of labor,material and utility costs,you are dealing with a single-criterion decision.

The first step in problem solving is

The most critical component in determining the success or failure of any quantitative approach to decision making is problem definition.

The volume that results in total revenue being equal to total cost is the

Give three benefits of model development and an example of each.

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.