Question 1

Larkin Industries manufactures several lines of decorative and functional metal items.The most recent order has been for 1200 door lock units for an apartment complex developer.The sales and production departments must work together to determine delivery schedules.Each lock unit consists of three components: the knob and face plate,the actual lock itself,and a set of two keys.Although the processes used in the manufacture of the three components vary,there are three areas where the production manager is concerned about the availability of resources.These three areas,their usage by the three components,and their availability are detailed in the table. $$\begin{array} { l c c c c } 
\text { Resource } & \text { Knob and Plate } & \text { Lock } & \text { Key (each) } & \text { Available } \
\hline \text { Brass Alloy } & 12 & 5 & 1 & 15000 \text { units } \
\text { Machining } & 18 & 20 & 10 & 36000 \text { minutes } \
\text { Finishing } & 15 & 5 & 1 & 12000 \text { minutes }
\end{array}$$ A quick look at the amounts available confirms that Larkin does not have the resources to fill this contract.A subcontractor,who can make an unlimited number of each of the three components,quotes the prices below. $$\begin{array} { l c c } 
\text { Component } & \text { Subcontractor Cost } & \text { Larkin Cost } \
\hline \text { Knob and Plate } & 10.00 & 6.00 \
\text { Lock } & 9.00 & 4.00 \
\text { Keys (set of 2) } & 1.00 & .50
\end{array}$$ Develop a linear programming model that would tell Larkin how to fill the order for 1200 lock sets at the minimum cost.

Accepted Answer

The answer of Larkin Industries manufactures several lines of decorative...

Question 2

If an LP problem is not correctly formulated,the computer software will indicate it is infeasible when trying to solve it.

Accepted Answer

A) True 
 B)False

Question 3

Let M be the number of units to make and B be the number of units to buy.If it costs $2 to make a unit and $3 to buy a unit and 4000 units are needed,the objective function is

Accepted Answer

A) Max 2M + 3B 
B) Min 4000 (M + 
B)  
C) Max 8000M + 12000B 
D) Min 2M + 3B

Question 4

To properly interpret dual prices,one must know how costs were allocated in the objective function.

Accepted Answer

A) True 
 B)False

Question 5

A company makes two products,A and B.A sells for $100 and B sells for $90.The variable production costs are $30 per unit for A and $25 for B.The company's objective could be written as: Max 190x1 F1F1F1S1F1F1F10 55x2.

Accepted Answer

A) True 
 B)False

Question 6

The production scheduling problem modeled in the textbook involves capacity constraints on all of the following types of resources except

Accepted Answer

A) material 
B) labor 
C) machine 
D) storage

Question 7

Super City Discount Department Store is open 24 hours a day.The number of cashiers need in each four hour period of a day is listed below. $\begin{array} { cc } 
Period&\text{Cashiers Needed}\
\hline
10 \text { p.m. to } 2 \text { a.m. } & 8 \ 2 \text { a.m. to } 6 \text { a.m. } & 4 \ 6 \text { a.m. to } 10 \mathrm { a } . \mathrm { m } & 7 \ 10 \mathrm { a } . \mathrm { m } . \text { to } 2 \mathrm { p } . \mathrm { m } . & 12 \ 2 \mathrm { p } . \mathrm { m } \text { to } 6 \mathrm { p } . \mathrm { m } . & 10 \ 6 \mathrm { p } . \mathrm { m } . \text { to } 10 \mathrm { p.m } & 15 \end{array}$ If cashiers work for eight consecutive hours,how many should be scheduled to begin working in each period in order to minimize the number of cashiers needed?

Accepted Answer

The answer of Super City Discount Department Store is open...

Question 8

Let Pij = the production of product i in period j.To specify that production of product 1 in period 3 and in period 4 differs by no more than 100 units,

Accepted Answer

A) P13 F1F1F1S1F1F1F10 P14 F1F1F1S1F1F1F10 100; P14 F1F1F1S1F1F1F10 P13 F1F1F1S1F1F1F10 100 
B) P13 F1F1F1S1F1F1F10 P14 F1F1F1S1F1F1F10 100; P13 F1F1F1S1F1F1F10 P14 F1F1F1S1F1F1F10 100 
C) P13 F1F1F1S1F1F1F10 P14 F1F1F1S1F1F1F10 100; P14 F1F1F1S1F1F1F10 P13 F1F1F1S1F1F1F10 100 
D) P13 F1F1F1S1F1F1F10 P14 F1F1F1S1F1F1F10 100; P14 F1F1F1S1F1F1F10 P13 F1F1F1S1F1F1F10 100

Question 9

Explain how a matrix could be used to define the decision variables in a blending problem.

Accepted Answer

The answer of Explain how a matrix could be used...

Question 10

The media selection model presented in the textbook involves maximizing the number of potential customers reached subject to a minimum total exposure quality rating.

Accepted Answer

A) True 
 B)False

Question 11

Discuss several resource allocation problems that can be modeled by varying the workforce assignment model.

Accepted Answer

The answer of Discuss several resource allocation problems that can...

Question 12

What benefits exist in using linear programming for production scheduling problems?

Accepted Answer

The answer of What benefits exist in using linear programming...

Question 13

Media selection problems usually determine

Accepted Answer

A) how many times to use each media source. 
B) the coverage provided by each media source. 
C) the cost of each advertising exposure. 
D) the relative value of each medium.

Question 14

Describe some common feature of multiperiod financial planning models.

Accepted Answer

The answer of Describe some common feature of multiperiod financial...

Question 15

Let A,B,and C be the amounts invested in companies A,B,and C.If no more than 50% of the total investment can be in company B,then

Accepted Answer

A) B F1F1F1S1F1F1F10 5 
B) A F1F1F1S1F1F1F10 .5B + C F1F1F1S1F1F1F10 0 
C) .5A F1F1F1S1F1F1F10 B F1F1F1S1F1F1F10 .5C F1F1F1S1F1F1F10 0 
D) F1F1F1S1F1F1F10.5A + .5B F1F1F1S1F1F1F10 .5C F1F1F1S1F1F1F10 0

Question 16

Why should decision makers who are primarily concerned with marketing or finance or production know about linear programming?

Accepted Answer

The answer of Why should decision makers who are primarily...

Question 17

Blending problems arise whenever a manager must decide how to

Accepted Answer

A) mix several different asset types in one investment strategy 
B) mix two or more resources to produce one or more products 
C) combine the results of two or more research studies into one 
D) allocate workers with different skill levels to various workshifts

Question 18

The dual price for a constraint that compares funds used with funds available is .058.This means that

Accepted Answer

A) the cost of additional funds is 5.8%. 
B) if more funds can be obtained at a rate of 5.5%, some should be. 
C) no more funds are needed. 
D) the objective was to minimize.

Question 19

Judgment is an acceptable way of obtaining input for a linear programming model.

Accepted Answer

A) True 
 B)False

Question 20

The SMM Company,which is manufacturing a new instant salad machine,has $280,000 to spend on advertising.The product is only to be test marketed initially in the Dallas area.The money is to be spent on an advertising blitz during one weekend (Friday,Saturday,and Sunday)in January,and SMM is limited to television advertising.
The company has three options available: daytime advertising,evening news advertising and the Super Bowl.Even though the Super Bowl is a national telecast,the Dallas Cowboys will be playing in it,and hence,the viewing audience will be especially large in the Dallas area.A mixture of one-minute TV spots is desired.The table below gives pertinent data: $$\begin{array} { l c c } 
& \text { Cost Per Ad } & \begin{array} { c } 
\text { Estimated New Audience } \
\text { Reached With Each Ad }
\end{array} \
\hline
\text { Daytime } & \$ 5,000 & 3,000 \
\text { Evening News } & \$ 7,000 & 4,000 \
\text { Super Bowl } & \$ 100,000 & 75,000
\end{array}$$ SMM has decided to take out at least one ad in each option.Further,there are only two Super Bowl ad spots available.There are 10 daytime spots and 6 evening news spots available daily.SMM wants to have at least 5 ads per day,but spend no more than $50,000 on Friday and no more than $75,000 on Saturday.Formulate and solve a linear program to help SMM decide how the company should advertise over the weekend.

Accepted Answer

The answer of The SMM Company,which is manufacturing a new...

Exam 9: Linear Programming Applications in Marketing, Finance, and Operations Management

If an LP problem is not correctly formulated,the computer software will indicate it is infeasible when trying to solve it.

Let M be the number of units to make and B be the number of units to buy.If it costs $2 to make a unit and $3 to buy a unit and 4000 units are needed,the objective function is

To properly interpret dual prices,one must know how costs were allocated in the objective function.

A company makes two products,A and B.A sells for $100 and B sells for $90.The variable production costs are $30 per unit for A and $25 for B.The company's objective could be written as: Max 190x₁  55x₂.

The production scheduling problem modeled in the textbook involves capacity constraints on all of the following types of resources except

Let P_ij = the production of product i in period j.To specify that production of product 1 in period 3 and in period 4 differs by no more than 100 units,

Explain how a matrix could be used to define the decision variables in a blending problem.

The media selection model presented in the textbook involves maximizing the number of potential customers reached subject to a minimum total exposure quality rating.

Discuss several resource allocation problems that can be modeled by varying the workforce assignment model.

What benefits exist in using linear programming for production scheduling problems?

Media selection problems usually determine

Describe some common feature of multiperiod financial planning models.

Let A,B,and C be the amounts invested in companies A,B,and C.If no more than 50% of the total investment can be in company B,then

Why should decision makers who are primarily concerned with marketing or finance or production know about linear programming?

Blending problems arise whenever a manager must decide how to

The dual price for a constraint that compares funds used with funds available is .058.This means that

Judgment is an acceptable way of obtaining input for a linear programming model.

Exam 9: Linear Programming Applications in Marketing, Finance, and Operations Management

If an LP problem is not correctly formulated,the computer software will indicate it is infeasible when trying to solve it.

Let M be the number of units to make and B be the number of units to buy.If it costs $2 to make a unit and $3 to buy a unit and 4000 units are needed,the objective function is

To properly interpret dual prices,one must know how costs were allocated in the objective function.

A company makes two products,A and B.A sells for $100 and B sells for $90.The variable production costs are $30 per unit for A and $25 for B.The company's objective could be written as: Max 190x1  55x2.

The production scheduling problem modeled in the textbook involves capacity constraints on all of the following types of resources except

Let Pij = the production of product i in period j.To specify that production of product 1 in period 3 and in period 4 differs by no more than 100 units,

Explain how a matrix could be used to define the decision variables in a blending problem.

The media selection model presented in the textbook involves maximizing the number of potential customers reached subject to a minimum total exposure quality rating.

Discuss several resource allocation problems that can be modeled by varying the workforce assignment model.

What benefits exist in using linear programming for production scheduling problems?

Media selection problems usually determine

Describe some common feature of multiperiod financial planning models.

Let A,B,and C be the amounts invested in companies A,B,and C.If no more than 50% of the total investment can be in company B,then

Why should decision makers who are primarily concerned with marketing or finance or production know about linear programming?

Blending problems arise whenever a manager must decide how to

The dual price for a constraint that compares funds used with funds available is .058.This means that

Judgment is an acceptable way of obtaining input for a linear programming model.

A company makes two products,A and B.A sells for $100 and B sells for $90.The variable production costs are $30 per unit for A and $25 for B.The company's objective could be written as: Max 190x₁  55x₂.

Let P_ij = the production of product i in period j.To specify that production of product 1 in period 3 and in period 4 differs by no more than 100 units,