Question 1

In a typical minimum cost network flow model,the nodes indicate

Accepted Answer

A) roads 
B) rail lines 
C) geographic locations 
D) rivers

Question 2

In aggregate planning models,we can model backlogging of demand by allowing a month's inventory to be negative.

Accepted Answer

A) True 
 B)False

Question 3

Transshipment points are locations where goods neither originate nor end up,but goods are allowed to enter such points to be shipped out to their eventual destinations.

Accepted Answer

A) True 
 B)False

Question 4

The transportation model is a special case of the minimum cost network flow model (MCNFM).

Accepted Answer

A) True 
 B)False

Question 5

A Michigan company consists of three subsidiaries.Each has the respective average payroll,unemployment reserve fund,and estimated payroll shown in the table below (all figures are in millions of dollars).Any employer in the state of Michigan whose reserve to average payroll ratio is less than 1 must pay 25% of its estimated payroll in unemployment insurance premiums.Otherwise,if the ratio is at least one,the employer pays 13%.The company can aggregate its subsidiaries and label them as separate employers.For example,if subsidiaries 1 and 2 are aggregated,they must pay 25% of their combined payroll in unemployment insurance premiums.Determine which subsidiaries should be aggregated.

Accepted Answer

The answer of A Michigan company consists of three subsidiaries.Each...

Question 6

If all the supplies and demands for a transportation model are integers,then the optimal Solver solution may or may not have integer-valued shipments.

Accepted Answer

A) True 
 B)False

Question 7

In blending problems,if a quality constraint involves a quotient,then the problem will be nonlinear.

Accepted Answer

A) True 
 B)False

Question 8

Any integer program involving 0 - 1 variables with constraint(s)is called a knapsack problem.

Accepted Answer

A) three 
B) two 
C) one 
D) zero

Question 9

Linear programming models are used by many financial firms to select a desirable bond portfolio.The following is a simplified version of such a model.Abby is considering investing in four bonds; $1.5 million is available for investment.The expected annual return,the worst-case annual return on each bond,and the "duration" of each bond are given below (The duration of a bond is a measure of the bond's sensitivity to interest rates.)  Abby wants to maximize the expected return from its bond investments,subject to the following three constraints:
-The worst-case return of the bond portfolio must be at least 8%.
-The average duration of the portfolio must be at most 6.For example,a portfolio that invests $600,000 in bond 1 and $400,000 in bond 4 has an average duration of [600,000(3)+ 400,000 (9)]/1,000,000 = 5.4
-Because of diversification requirements,at most 40% of the total amount invested can be invested in a single bond.
Determine how Abby can maximize the expected return on her investment.

Accepted Answer

The answer of Linear programming models are used by many...

Question 10

If an LP problem is not correctly formulated,Solver will automatically indicate that it is infeasible when trying to solve it.

Accepted Answer

A) True 
 B)False

Question 11

Determine how to minimize the company's total cost during the next four quarters.

Accepted Answer

The answer of Determine how to minimize the company's total...

Question 12

The objective in transportation problems is typically to:

Accepted Answer

A) maximize profits 
B) maximize revenue 
C) minimize costs 
D) maximize feasibility

Question 13

In a transportation problem,if it costs $4 per item to ship up to 200 items between cities,and $2 per item for each additional item,the proportionality assumption of LP is satisfied.

Accepted Answer

A) True 
 B)False

Question 14

To specify that  must be at most 75% of the blend of  ,  ,and  ,we must have a constraint of the form

Accepted Answer

A)   
B)   
C)   
D)   
E)

Question 15

In transportation problems,the three sets of input numbers that are required are capacities,demands and flows.

Accepted Answer

A) True 
 B)False

Exam 14: Optimization Modeling: Applications

In a typical minimum cost network flow model,the nodes indicate

In aggregate planning models,we can model backlogging of demand by allowing a month's inventory to be negative.

Transshipment points are locations where goods neither originate nor end up,but goods are allowed to enter such points to be shipped out to their eventual destinations.

The transportation model is a special case of the minimum cost network flow model (MCNFM).

If all the supplies and demands for a transportation model are integers,then the optimal Solver solution may or may not have integer-valued shipments.

In blending problems,if a quality constraint involves a quotient,then the problem will be nonlinear.

Any integer program involving 0 - 1 variables with constraint(s) is called a knapsack problem.

If an LP problem is not correctly formulated,Solver will automatically indicate that it is infeasible when trying to solve it.

Determine how to minimize the company's total cost during the next four quarters.

The objective in transportation problems is typically to:

In a transportation problem,if it costs $4 per item to ship up to 200 items between cities,and $2 per item for each additional item,the proportionality assumption of LP is satisfied.

To specify that must be at most 75% of the blend of , ,and ,we must have a constraint of the form

In transportation problems,the three sets of input numbers that are required are capacities,demands and flows.