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Business
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Principles of Operations Management
Exam 20: The Simplex Method of Linear Programming
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Question 1
Essay
Consider the transportation problem in the data set and optimal solution below. Verify by hand or by calculator (show your work) the value of the objective function.
Question 2
Multiple Choice
A transportation problem has improvement indices of 5, 4, 0, and -3. Which of the following is always true?
Question 3
True/False
In a transportation minimization problem, the negative improvement index associated with a cell indicates that reallocating units to that cell would lower costs.
Question 4
Essay
Find the minimum cost solution for the transportation problem detailed in the table below.
Before your solution can be implemented, you discover that the combination Source 3 - Destination 1 is unavailable, due to political turmoil in the country where Source 3 is located. Solve the revised problem. How much is cost increased by this complication?
Question 5
Multiple Choice
Which of the following is not information needed for a transportation problem?
Question 6
True/False
The stepping-stone method frequently achieves an optimal solution as soon as it calculates an initial feasible solution.
Question 7
Multiple Choice
A transportation problem has two origins: A can supply 20 units and B can supply 30 units. This problem has two destinations: C requires 25 units and D requires 35 units. Which of the following is true?
Question 8
Multiple Choice
A transportation model fills one-half of its cells under the optimal solution. Which of the following most closely describes the number of sources compared to the number of destinations?
Question 9
True/False
Neither the northwest corner rule nor the intuitive method considers shipping cost in making initial allocations.
Question 10
True/False
The transportation model is an excellent tool for minimizing shipping costs among existing facilities, but it is not useful when firms consider new facility locations.
Question 11
Essay
A transportation model uses at least 10 sources and 100 destinations. If the ratio of sources to destinations remains constant, does the maximum % of cells used by the optimum solution remain constant? Why or why not?