Question 1

Problems which have only integer solutions are called

Accepted Answer

A) discrete programming problems 
B) integer programming problems 
C) discrete programming problems. 
D) infeasible programming problems

Question 2

State Farm Supply has just received an order for 10,000 pounds of chicken feed. The farmer has specified certain that the feed meet minimum requirements for Protein, Carbohydrate, Fat and Vitamins. State Farm can blend four different feeds to produce the required mix. The farmer would like to pay the lowest possible price for the feed. The data for the problem is summarized in the following table.  Formulate the LP for this problem.

Accepted Answer

The answer of State Farm Supply has just received an...

Question 3

A company needs to purchase several new machines to meet its future production needs. It can purchase three different types of machines A, B, and C. Each machine A costs $80,000 and requires 2,000 square feet of floor space. Each machine B costs $50,000 and requires 3,000 square feet of floor space. Each machine C costs $40,000 and requires 5,000 square feet of floor space. The machines can produce 200, 250 and 350 units per day respectively. The plant can only afford $500,000 for all the machines and has at most 20,000 square feet of room for the machines. The company wants to buy as many machines as possible to maximize daily production.
What are the key formulas for this Excel spreadsheet implementation of the following formulation?

Accepted Answer

The answer of A company needs to purchase several new...

Question 4

Scaling problems

Accepted Answer

A) can cause Risk Solver Platform (RSP) to consider a linear problem as nonlinear. 
B) can cause problems in accuracy of solutions returned. 
C) are caused by small numbers and large numbers used in the same problem. 
D) all of these.

Question 5

Using Data Envelopment Analysis (DEA) for an inefficient unit, a more efficient composite unit can be found by

Accepted Answer

A) Solving its DEA problem and retrieving the weights from the answer report. 
B) Solving its DEA problem and examining those units whose final value is non-zero. 
C) Solving its DEA problem and using the resulting shadow prices as composite weights. 
D) Solving its DEA problem and using the positive resulting shadow prices as composite weights.

Question 6

The following questions are based on this problem and accompanying Excel windows.
Jones Furniture Company produces beds and desks for college students. The production process requires carpentry and varnishing. Each bed requires 6 hours of carpentry and 4 hour of varnishing. Each desk requires 4 hours of carpentry and 8 hours of varnishing. There are 36 hours of carpentry time and 40 hours of varnishing time available. Beds generate $30 of profit and desks generate $40 of profit. Demand for desks is limited, so at most 8 will be produced.  The LP model for the problem is
  
-Refer to Exhibit 3.1. What formula should be entered in cell E5 in the accompanying Excel spreadsheet to compute total profit?

Accepted Answer

A) =B4*B5+C4*C5 
B) =SUMPRODUCT(B8:C8,$B$4:$C$4) 
C) =SUM(B5:C5) 
D) =SUM(E8:E10)

Question 7

The following questions are based on this problem and accompanying Excel windows.
A company is planning production for the next 4 quarters. They want to minimize the cost of production. The production cost is stable but demand and production capacity vary from quarter to quarter. The maximum amount of inventory which can be held is 12,000 units and management wants to keep at least 3,000 units on hand. Quarterly inventory holding cost is 3% of the cost of production. The company estimates the number of units carried in inventory each month by averaging the beginning and ending inventory for each month. There are currently 5,000 units in inventory. The company wants to produce at no less than one half of its maximum capacity in any quarter.
   
-Refer to Exhibit 3.5. What formula should be entered in cell C6 in the accompanying Excel spreadsheet to compute ending inventory?

Accepted Answer

A) =C3-C4+C5 
B) =C3+C4-C5 
C) =C3-(C4-C5) 
D) =C5-C4-C3

Question 8

The hospital administrators at New Hope, County General, and City East recently received notice of an impending state inspection of their facilities. Under new guidelines established to improve the overall health care system, state inspectors will be assessing the efficiency of each hospital. The staff at New Hope has suggested a mutual assistance program in preparation for the inspections and have proposed using DEA as a means to assess the efficiency of each facility. The data collected thus far is summarized in the following table. All data reflects averages compiled over the past six months.
  Based on the following formulation, is City East efficient? If not, what input and output values should they aspire to in order to become efficient?

Accepted Answer

The answer of The hospital administrators at New Hope, County...

Question 9

Microsoft Excel, Quattro Pro and Lotus 1-2-3 contain built-in optimizers called

Accepted Answer

A) what-if engines. 
B) calculators. 
C) solvers. 
D) risk analyzers.

Question 10

You have been given the following linear programming model and Excel spreadsheet to solve this problem. What cell references would you enter in the Risk Solver Platform (RSP) task pane for the following?
Objective Cell:
Variables Cells:
Constraints Cells:

Accepted Answer

The answer of You have been given the following linear...

Question 11

Carlton construction is supplying building materials for a new mall construction project in Kansas. Their contract calls for a total of 250,000 tons of material to be delivered over a three-week period. Carlton's supply depot has access to three modes of transportation: a trucking fleet, railway delivery, and air cargo transport. Their contract calls for 120,000 tons delivered by the end of week one, 80% of the total delivered by the end of week two, and the entire amount delivered by the end of week three. Contracts in place with the transportation companies call for at least 45% of the total delivered be delivered by trucking, at least 40% of the total delivered be delivered by railway, and up to 15% of the total delivered be delivered by air cargo. Unfortunately, competing demands limit the availability of each mode of transportation each of the three weeks to the following levels (all in thousands of tons):
  The following is the LP model for this logistics problem.
   What formula goes in cells F10, E3, E4, E5, and B6 of this Excel spreadsheet?

Accepted Answer

The answer of Carlton construction is supplying building materials for...

Question 12

The following questions are based on this problem and accompanying Excel windows.
The Byte computer company produces two models of computers, Plain and Fancy. It wants to plan how many computers to produce next month to maximize profits. Producing these computers requires wiring, assembly and inspection time. Each computer produces a certain level of profits but faces only a limited demand. There are also a limited number of wiring, assembly and inspection hours available in each month. The data for this problem is summarized in the following table.   
-Refer to Exhibit 3.2. Which cells should be changing cells in this problem?

Accepted Answer

A) B4:C4 
B) E5 
C) D8:D10 
D) E8:E10

Question 13

The following questions are based on this problem and accompanying Excel windows.
Jack's distillery blends scotches for local bars and saloons. One of his customers has requested a special blend of scotch targeted as a bar scotch. The customer wants the blend to involve two scotch products, call them A and B. Product A is a higher quality scotch while product B is a cheaper brand. The customer wants to make the claim the blend is closer to high quality than the alternative. The customer wants 50 1500 ml bottles of the blend. Each bottle must contain at least 48% of Product A and at least 500 ml of B. The customer also specified that the blend have an alcohol content of at least 85%. Product A contains 95% alcohol while product B contains 78%. The blend is sold for $12.50 per bottle. Product A costs $7 per liter and product B costs $3 per liter. The company wants to determine the blend that will meet the customer's requirements and maximize profit.
  
-Refer to Exhibit 3.3. What formula should be entered in cell E5 in the accompanying Excel spreadsheet to compute total cost?

Accepted Answer

A) =B4*C4+B5*C5 
B) =SUMPRODUCT(B4:C4,B5:C5) 
C) =SUM(B5:C5) 
D) =SUM(E8:E10)

Question 14

The following questions are based on this problem and accompanying Excel windows.
A company is planning production for the next 4 quarters. They want to minimize the cost of production. The production cost is stable but demand and production capacity vary from quarter to quarter. The maximum amount of inventory which can be held is 12,000 units and management wants to keep at least 3,000 units on hand. Quarterly inventory holding cost is 3% of the cost of production. The company estimates the number of units carried in inventory each month by averaging the beginning and ending inventory for each month. There are currently 5,000 units in inventory. The company wants to produce at no less than one half of its maximum capacity in any quarter.
   
-Refer to Exhibit 3.5. What formula should be entered in cell C18 in the accompanying Excel spreadsheet to compute the quarterly carrying costs?

Accepted Answer

A) =C15*C3+C6 
B) =C15*(C3+C6) 
C) =C15*C3/2 
D) =C15*(C3+C6)/2

Question 15

What does the Excel =SUMPRODUCT(A1:A5,C6;C10) command do?

Accepted Answer

A) Sums each range and multiplies the sums. 
B) Sum each pair of cells and multiples each sum. 
C) Multiplies the contents of cells containing the =SUM() command. 
D) Multiplies each pair of cells and sums each product.

Question 16

The following questions are based on this problem and accompanying Excel windows.
Jones Furniture Company produces beds and desks for college students. The production process requires carpentry and varnishing. Each bed requires 6 hours of carpentry and 4 hour of varnishing. Each desk requires 4 hours of carpentry and 8 hours of varnishing. There are 36 hours of carpentry time and 40 hours of varnishing time available. Beds generate $30 of profit and desks generate $40 of profit. Demand for desks is limited, so at most 8 will be produced.  The LP model for the problem is
  
-Refer to Exhibit 3.1. Which cells should be the constraint cells in this problem?

Accepted Answer

A) B4:C4 
B) E5 
C) D8:D10 
D) E8:E10

Question 17

The following questions are based on this problem and accompanying Excel windows.
The Byte computer company produces two models of computers, Plain and Fancy. It wants to plan how many computers to produce next month to maximize profits. Producing these computers requires wiring, assembly and inspection time. Each computer produces a certain level of profits but faces only a limited demand. There are also a limited number of wiring, assembly and inspection hours available in each month. The data for this problem is summarized in the following table.   
-Refer to Exhibit 3.2. Which cells should be the constraint cells in this problem?

Accepted Answer

A) B4:C4 
B) E5 
C) D8:D12 
D) E8:E12

Question 18

The following questions are based on this problem and accompanying Excel windows.
The Byte computer company produces two models of computers, Plain and Fancy. It wants to plan how many computers to produce next month to maximize profits. Producing these computers requires wiring, assembly and inspection time. Each computer produces a certain level of profits but faces only a limited demand. There are also a limited number of wiring, assembly and inspection hours available in each month. The data for this problem is summarized in the following table.   
-Refer to Exhibit 3.2. What formula should be entered in cell D8 in the accompanying Excel spreadsheet to compute the amount of wiring used?

Accepted Answer

A) =B4*B5+C4*C5 
B) =SUMPRODUCT(B8:C8,$B$4:$C$4) 
C) =SUM(B5:C5) 
D) =SUM(E8:E10)

Question 19

What command is used to add the contents of cells A1, A2 and A3?

Accepted Answer

A) =A1+A2+A3 
B) =ADD(A1:A3) 
C) =TOTAL(A1:A3) 
D) =PRODUCT(A1:A3)

Question 20

Data Envelopment Analysis (DEA) is an LP-based methodology in which weighted sums of inputs and outputs are calculated and

Accepted Answer

A) the constraints capture the maximum effectiveness of each unit. 
B) the objective is to maximize every units output. 
C) the constraints ensure the sum of the weighted outputs is one. 
D) the objective for each unit is to maximize the weighted sum of its outputs.

Exam 3: Modeling and Solving Lp Problems in a Spreadsheet