Test Bank For Operations and Supply Chain Management For The 21st Century 1st Edition by Boyer

Test Bank for Operations and Supply Chain Management for the 21st Century 1st Edition by Boy
Test Bank for Operations and Supply Chain

Management for the 21st Century 1st Edition by
Boyer
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Chapter 9--Optimization and Simulation Modeling
Student: ___________________________________________________________________________
1. The goal of operations research techniques is to optimize organizational performance.

True False
2. Optimization always implies finding the maximum point of a mathematical function.

True False
3. The objective function of a linear program provides the criterion by which all decisions should be evaluated.
True False
4. A nonnegativity constraint should never be applied to a linear programming optimization problem.

True False
5. Constraints place limits or restrictions on a given optimization problem.

True False
6. A product-mix problem often involves maximizing profits by producing the optimal combination of items
produced.
True False
7. One component of a linear programming problem assumes that all mathematical equations or inequalities are
represented as straight lines.
True False
8. Only minimization problems can be solved graphically.

True False
9. The optimal solution of a linear programming problem will always occur on a corner of the feasible region.
True False
10. The graphical solution to a linear programming problem can be used when there are only two decision
variables.
True False
11. The optimal solution of a linear programming problem will always be outside of the feasible regions.
True False
12. A constraint that is not binding has been completely used.

True False
13. Consider the following constraint: X3 ³ 33. This implies that at most 33 units of product X3 can be
produced.
True False
14. Slack in a constraint means that additional units of the constraint are available.
True False
15. The shadow price for a constraint is the amount the objective function will increase if one more unit of the
constraint is obtained.
True False
16. The sensitivity analysis can help a manager to estimate the value of obtaining additional resources.
True False
17. Maximizing transportation costs between production facilities and customer locations or distribution centers
is a common application of linear programming.
True False
18. Simulation models are often used in decision making because testing proposed new operating procedures in
an actual operation can be expensive.
True False
19. Companies have little downside with experimenting with new procedures on actual customers.
True False
20. When the state of a system needs to be known at specific times, numerical simulation is a viable option for a
decision maker.
True False
21. Random chance makes it difficult to predict outcomes in complex, real-world operating environments.
True False
22. A computer simulation is seldom appropriate if system dynamics are extremely complex.
True False
23. A computer simulation is generally appropriate for process analysis if the objective is to observe the system
over a period of time.
True False
24. The focus in numerical simulations is the aggregate behavior associated with managers' decisions.
True False
25. Uniformly distributed random numbers cannot easily be translated to other specific distributions.
True False
26. Modeling the check-in process at a hotel is an example of a discrete-event simulation.

True False
27. Computer simulations should be avoided for validating proposed decision models.
True False
28. Common spreadsheet applications are not adequate for performing relevant or useful simulations.
True False
29. Animated computer simulations allow users to quickly create and evaluate them without actually changing
the real operations system.
True False
30. Recently developed simulation programs are generally easy to use, but require an understanding of logic and
statistics.
True False
31. Which of the following is not considered to be a component of linear programming?

A. An objective function
B. Decision variables
C. Constraints
D. Nonnegativity
E. Restricted to integers
32. Linear programming is commonly used to solve all the following types of problems except
A. Production planning
B. Transportation planning
C. Project planning
D. Labor scheduling
E. Capacity planning
33. Extremely complex linear programs can be solved with which mathematical tool?
A. Algorithms
B. Simulations
C. Probabilities
D. Regression
E. Decision trees
34. Which of the following means arriving at a maximum or minimum point of a mathematical function?
A. Linear programming
B. Constraints
C. Optimization
D. Linearity
E. Best-case scenario planning
35. If a company is trying to maximize profit while selling two products, Bigpods with $10 profit and
Smallpods with $7 profit, and if 100 assembly hours are split equally between the two products and one hour
assembly is required for each pod, what is the maximum profit?
A. $17
B. $700
C. $850
D. $1000
E. $1700
36. If the marketing department would like at least 100 white blenders to be produced, the sign for this
constraint would be:
A. £
B. ³
C. <
D. >
E. =
37. The intersection point of two constraints in an LP solution is obtained using what method?
A. Solving simultaneous equations
B. Enumeration
C. Repetition
D. Trial and error
E. Equation reiteration
38. Once a region is identified in an LP problem that satisfies all conditions, where will the optimum solution be
found with relation to the feasible region?
A. Any place within the region
B. A point outside the region
C. At the origin
D. On one of the corners of the region
E. None of these options
39. If the maximization objective function is evaluated at three corner points of a graphically solved LP
problem, and Point A yields a profit of $20,000, Point B yields a profit of $55,000, and point C yields a profit of
$41,000, what point produces the optimum solution?
A. The origin
B. Point A
C. Point B
D. Point C
E. Cannot be determined
40. The graphical solution to a linear programming problem can be used when there are how many decision
variables?
A. One
B. Two
C. Three
D. Any number of decision variables
E. One more than the constraints
41. Which Microsoft Excel tool can be used to develop linear programming solutions?
A. The lookup wizard
B. Solver module
C. Security macro
D. Data analysis
E. XML expansion pack
42. When using Microsoft Excel to solve an LP problem, the software package provides an answer report and
what other report?
A. Solution analysis report
B. Slack analysis report
C. Constraint optimization report
D. Adjustable cell report
E. Sensitivity report
43. Which term describes the additional amount a company will make if one more unit of a constrained resource
is added?
A. Shadow price
B. Slack
C. Binding
D. Final value
E. Sensitivity value
44. Which of the following is not a technique similar to linear programming?
A. Integer linear programming
B. Nonlinear programming
C. Dynamic programming
D. Goal programming
E. Simulation programming
45. A transportation problem has a nonnegativity constraint; what two other constraints does it have?
A. Production capacity and demand constraints
B. Fuel and mileage constraints
C. Storage capacity and truck capacity constraints
D. Manufacturing costs and transportation distances
E. Production locations and store locations
46. For a company that makes short-term loans, 20 minutes are required to review the loan, and 30 minutes to
check credit; 10 employees who can check credit and 5 employees who can review loans are available, and it
costs $50 for each loan. Which of the following would be included in the objective function?
A. The 20 minutes to review
B. The 30 minutes to credit check
C. 10 employee credit checkers
D. 5 employee reviewers
E. $50 loan cost
47. What is a translator function?

A. Converts uniformly distributed random numbers to another probability distribution
B. Translates from English to simulation language
C. Changes values to a negative amount
D. Enables computers to read FORTRAN
E. Identifies distribution of a given arrival pattern
48. In addition to management decision-making games and model validation, discrete-event simulation can be
used for what other purpose?
A. Cost evaluation
B. Model selection
C. Company comparisons
D. Process design
E. All of these options
49. The Excel function "=RAND()" will generate uniformly distributed pseudorandom numbers that are:
A. Positive
B. Less than 1
C. Between -1 and 1
D. Greater than or equal to 0 and less than 1
E. Integers
50. Which of the following is not a common application of a simulation?

A. Determining the flow of raw materials in a factory
B. Determining effective deployment of expensive resources
C. Customer arrivals at a service location
D. Processing time for a banking facility
E. Determining economic order quantity for inventory
51. Which of the following describes business simulations?

A. Simulations are only numerical.
B. Animation simulations are too sophisticated for business applications.
C. Simulations are too complex to run on spreadsheets.
D. Highly educated specialists are required to conduct simulations.
E. None of these options describe business simulations.
52. Although recent simulation programs do not require knowledge of a programming language, they do require
that users have a basic understanding of what?
A. Modeling concepts
B. Logic
C. Statistics
D. All of these options
53. What is an advantage of using spreadsheet-based simulation models?

A. The amount of programming required
B. The cost of the spreadsheet software
C. The time to run the simulation
D. The time to develop the models
E. All are advantages of using spreadsheet-based models
54. To simulate the group size of groups of people attending a movie screening, the following translator
function is used:
Group size 1 = 0 to less than 0.21
Group size 2 = 0.21 to less than 0.65
Group size of 5 or more = 0.95 to less than 1
What is the simulated group size if the random number 0.59 is generated?
A. 1
B. 2
C. 3
D. 4
E. 5
55. The shadow price of constraint will be provided on what Microsoft Excel output?
A. Answer report
B. Solver options report
C. Gradient report
D. Sensitivity report
E. Limits report
56. Identify and briefly describe the five main components of a linear programming problem.
57. Briefly describe the graphical method of solving a linear programming problem.
58. Identify three key values found on an Excel answer report.
59. Describe what a translator function does in a simulation.
60. Describe how a simulation can be used to validate models.
61. Identify three conditions when computer simulation is an appropriate tool for process analysis.
62. Why are simulation models used in decision making?
63. Identify three disadvantages to building simulation models in spreadsheets.
64. Draw the feasible region if at least 200 units of product A are required and at least 100 units of product B
are required by a company.
65. Identify three applications (types of problems) of linear programming.

66. Sam's Sawmill makes two products. One product is a wood bench (B) and the other product is a wood stool
(S). Sam has a sawmill, so having the right material on hand is never a problem. However, production is
limited. Sam's brother Chris is the carpenter, and he cannot work more than 240 hours a month. It takes Chris 4
hours to make a bench and 3 hours to make a stool. Sam had a limited budget, so he installed a small paint
booth for staining the products. Sam does the painting, but he only has 100 hours a month available. It takes
Sam 2 hours to paint a bench and 1 hour to paint a stool. Sam makes $7 for every bench and $5 profit for every
stool.
What is the objective function for Sam's product mix problem?
stool.
What are the constraints for Sam's Sawmill in terms of Chris's time and Sam's time?
stool.
Identify the corner points of the feasible region.
stool.
What is the profit at the corner points of the feasible region? What point maximizes the objective function?
70. For the following sensitivity report, how much would your objective function increase if you acquired more
of constraint A? How much would your objective function increase if you acquired more of constraint B?
Adj
usta
ble
Cell
s
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$8 Solution Values Product X 30 0 70 30 3.333333333
$C$8 Solution Values Product Z 40 0 50 2.5 15
Con
strai
nts
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$D$5 Constraint A Left Hand Side 240 15 240 60 40
$D$6 Constraint B Left Hand Side 100 5 100 20 20
71. If a transportation problem has suppliers at four locations and customers at six locations, how many decision
variables are required to solve the transportation problem?
72. For the following sensitivity report, what is the range that the decision variable for product X is valid? What
is the range that the decision variable for product Y is valid? What is the range that constraint A is valid? What
is the range that constraint B is valid?
Adj
usta
ble
Cell
s
Con
strai
nts
73. A process has two constraints. Constraint A is 2X + 2Y £ 14. Constraint B is 4X + 10Y £ 40. All variables
are nonnegative. What are the corner points of the feasible region?
74. Three stores are supplied from three distribution centers. Shipping costs, store demand, and distribution
center (DC) capacity are shown in the following table.
Costs
Distribution Store A Store B Store C DC
Center Capacity
X 1 3 2 250
Y 3 4 2 350
Z 2 2 3 400
Store Demand 300 500 200
The following sensitivity report was also obtained from Excel.
Adju
stable
Cells
$B$10 X Store A 250 0 1 1 1E+30
$C$10 X Store B 0 1 3 1E+30 1
$D$10 X Store C 0 2 2 1E+30 2
$B$11 Y Store A 50 0 3 1 1
$C$11 Y Store B 100 0 4 1 1
$D$11 Y Store C 200 0 2 2 1E+30
$B$12 Z Store A 0 1 2 1E+30 1
$C$12 Z Store B 400 0 2 1 1E+30
$D$12 Z Store C 0 3 3 1E+30 3
Const
raints
$E$10 X Capacity 250 -2 250 50 0
$E$11 Y Capacity 350 0 350 1E+30 0
$E$12 Z Capacity 400 -2 400 100 0
$B$13 Store A 300 3 300 0 50
$C$13 Store B 500 4 500 0 100
$D$13 Store C 200 2 200 0 200
What is the total minimal shipping cost?

Costs
Center Capacity
X 1 3 2 250
Y 3 4 2 350
Z 2 2 3 400
Adju
stable
Cells
$B$10 X Store A 250 0 1 1 1E+30
$C$10 X Store B 0 1 3 1E+30 1
$D$10 X Store C 0 2 2 1E+30 2
$B$11 Y Store A 50 0 3 1 1
$C$11 Y Store B 100 0 4 1 1
$D$11 Y Store C 200 0 2 2 1E+30
$B$12 Z Store A 0 1 2 1E+30 1
$C$12 Z Store B 400 0 2 1 1E+30
$D$12 Z Store C 0 3 3 1E+30 3
Const
raints
$E$10 X Capacity 250 -2 250 50 0
$E$11 Y Capacity 350 0 350 1E+30 0
$E$12 Z Capacity 400 -2 400 100 0
$B$13 Store A 300 3 300 0 50
$C$13 Store B 500 4 500 0 100
$D$13 Store C 200 2 200 0 200
Will the stores have a surplus or shortage?

Will any of the factories have extra capacity?
Chapter 9--Optimization and Simulation Modeling Key
1. The goal of operations research techniques is to optimize organizational performance.

TRUE
2. Optimization always implies finding the maximum point of a mathematical function.

FALSE
3. The objective function of a linear program provides the criterion by which all decisions should be evaluated.
TRUE
4. A nonnegativity constraint should never be applied to a linear programming optimization problem.

FALSE
5. Constraints place limits or restrictions on a given optimization problem.

TRUE
6. A product-mix problem often involves maximizing profits by producing the optimal combination of items
produced.
TRUE
7. One component of a linear programming problem assumes that all mathematical equations or inequalities are
TRUE
8. Only minimization problems can be solved graphically.

FALSE
9. The optimal solution of a linear programming problem will always occur on a corner of the feasible region.
TRUE
10. The graphical solution to a linear programming problem can be used when there are only two decision
variables.
TRUE
11. The optimal solution of a linear programming problem will always be outside of the feasible regions.
FALSE
12. A constraint that is not binding has been completely used.

FALSE
13. Consider the following constraint: X3 ³ 33. This implies that at most 33 units of product X3 can be
produced.
FALSE
14. Slack in a constraint means that additional units of the constraint are available.
TRUE
15. The shadow price for a constraint is the amount the objective function will increase if one more unit of the
constraint is obtained.
TRUE
16. The sensitivity analysis can help a manager to estimate the value of obtaining additional resources.
TRUE
17. Maximizing transportation costs between production facilities and customer locations or distribution centers
is a common application of linear programming.
FALSE
18. Simulation models are often used in decision making because testing proposed new operating procedures in
an actual operation can be expensive.
TRUE
19. Companies have little downside with experimenting with new procedures on actual customers.
FALSE
20. When the state of a system needs to be known at specific times, numerical simulation is a viable option for a
decision maker.
FALSE
21. Random chance makes it difficult to predict outcomes in complex, real-world operating environments.
TRUE
22. A computer simulation is seldom appropriate if system dynamics are extremely complex.
FALSE
23. A computer simulation is generally appropriate for process analysis if the objective is to observe the system
over a period of time.
TRUE
24. The focus in numerical simulations is the aggregate behavior associated with managers' decisions.
TRUE
25. Uniformly distributed random numbers cannot easily be translated to other specific distributions.
TRUE
26. Modeling the check-in process at a hotel is an example of a discrete-event simulation.

TRUE
27. Computer simulations should be avoided for validating proposed decision models.
FALSE
28. Common spreadsheet applications are not adequate for performing relevant or useful simulations.
FALSE
29. Animated computer simulations allow users to quickly create and evaluate them without actually changing
the real operations system.
TRUE
30. Recently developed simulation programs are generally easy to use, but require an understanding of logic and
statistics.
TRUE
31. Which of the following is not considered to be a component of linear programming?

A. An objective function
B. Decision variables
C. Constraints
D. Nonnegativity
E. Restricted to integers
32. Linear programming is commonly used to solve all the following types of problems except
A. Production planning
B. Transportation planning
C. Project planning
D. Labor scheduling
E. Capacity planning
33. Extremely complex linear programs can be solved with which mathematical tool?
A. Algorithms
B. Simulations
C. Probabilities
D. Regression
E. Decision trees
34. Which of the following means arriving at a maximum or minimum point of a mathematical function?
A. Linear programming
B. Constraints
C. Optimization
D. Linearity
E. Best-case scenario planning
35. If a company is trying to maximize profit while selling two products, Bigpods with $10 profit and
Smallpods with $7 profit, and if 100 assembly hours are split equally between the two products and one hour
assembly is required for each pod, what is the maximum profit?
A. $17
B. $700
C. $850
D. $1000
E. $1700
36. If the marketing department would like at least 100 white blenders to be produced, the sign for this
constraint would be:
A. £
B. ³
C. <
D. >
E. =
37. The intersection point of two constraints in an LP solution is obtained using what method?
A. Solving simultaneous equations
B. Enumeration
C. Repetition
D. Trial and error
E. Equation reiteration
38. Once a region is identified in an LP problem that satisfies all conditions, where will the optimum solution be
found with relation to the feasible region?
A. Any place within the region
B. A point outside the region
C. At the origin
D. On one of the corners of the region
39. If the maximization objective function is evaluated at three corner points of a graphically solved LP
problem, and Point A yields a profit of $20,000, Point B yields a profit of $55,000, and point C yields a profit of
$41,000, what point produces the optimum solution?
A. The origin
B. Point A
C. Point B
D. Point C
E. Cannot be determined
40. The graphical solution to a linear programming problem can be used when there are how many decision
variables?
A. One
B. Two
C. Three
D. Any number of decision variables
E. One more than the constraints
41. Which Microsoft Excel tool can be used to develop linear programming solutions?
A. The lookup wizard
B. Solver module
C. Security macro
D. Data analysis
E. XML expansion pack
42. When using Microsoft Excel to solve an LP problem, the software package provides an answer report and
what other report?
A. Solution analysis report
B. Slack analysis report
C. Constraint optimization report
D. Adjustable cell report
E. Sensitivity report
43. Which term describes the additional amount a company will make if one more unit of a constrained resource
is added?
A. Shadow price
B. Slack
C. Binding
D. Final value
E. Sensitivity value
44. Which of the following is not a technique similar to linear programming?
A. Integer linear programming
B. Nonlinear programming
C. Dynamic programming
D. Goal programming
E. Simulation programming
45. A transportation problem has a nonnegativity constraint; what two other constraints does it have?
A. Production capacity and demand constraints
B. Fuel and mileage constraints
C. Storage capacity and truck capacity constraints
D. Manufacturing costs and transportation distances
E. Production locations and store locations
46. For a company that makes short-term loans, 20 minutes are required to review the loan, and 30 minutes to
check credit; 10 employees who can check credit and 5 employees who can review loans are available, and it
costs $50 for each loan. Which of the following would be included in the objective function?
A. The 20 minutes to review
B. The 30 minutes to credit check
C. 10 employee credit checkers
D. 5 employee reviewers
E. $50 loan cost
47. What is a translator function?

A. Converts uniformly distributed random numbers to another probability distribution
B. Translates from English to simulation language
C. Changes values to a negative amount
D. Enables computers to read FORTRAN
E. Identifies distribution of a given arrival pattern
48. In addition to management decision-making games and model validation, discrete-event simulation can be
used for what other purpose?
A. Cost evaluation
B. Model selection
C. Company comparisons
D. Process design
E. All of these options
49. The Excel function "=RAND()" will generate uniformly distributed pseudorandom numbers that are:
A. Positive
B. Less than 1
C. Between -1 and 1
D. Greater than or equal to 0 and less than 1
E. Integers
50. Which of the following is not a common application of a simulation?

A. Determining the flow of raw materials in a factory
B. Determining effective deployment of expensive resources
C. Customer arrivals at a service location
D. Processing time for a banking facility
E. Determining economic order quantity for inventory
51. Which of the following describes business simulations?

A. Simulations are only numerical.
B. Animation simulations are too sophisticated for business applications.
C. Simulations are too complex to run on spreadsheets.
D. Highly educated specialists are required to conduct simulations.
E. None of these options describe business simulations.
52. Although recent simulation programs do not require knowledge of a programming language, they do require
that users have a basic understanding of what?
A. Modeling concepts
B. Logic
C. Statistics
D. All of these options
53. What is an advantage of using spreadsheet-based simulation models?

A. The amount of programming required
B. The cost of the spreadsheet software
C. The time to run the simulation
D. The time to develop the models
E. All are advantages of using spreadsheet-based models
54. To simulate the group size of groups of people attending a movie screening, the following translator
function is used:
Group size 1 = 0 to less than 0.21
Group size of 5 or more = 0.95 to less than 1
What is the simulated group size if the random number 0.59 is generated?
A. 1
B. 2
C. 3
D. 4
E. 5
55. The shadow price of constraint will be provided on what Microsoft Excel output?
A. Answer report
B. Solver options report
C. Gradient report
D. Sensitivity report
E. Limits report
56. Identify and briefly describe the five main components of a linear programming problem.
Objective function. The objective function is a mathematical formulation of the criterion by which all decisions
should be evaluated.
Decision variables. Decision variables are the parameters that can be changed by the decision maker to achieve
a higher or lower value of the objective function.
Constraints. Constraints are restrictions placed on the decision scenario.
Linearity. When formulating linear programming problems, all mathematical equations or inequalities are
Nonnegativity. Finally, each decision variable within a linear programming formulation is assumed to take only
nonnegative values, although this is not essential.
57. Briefly describe the graphical method of solving a linear programming problem.
Because all the equations within a linear programming problem are either straight lines or inequalities, the
constraints are first plotted to find the region that satisfies all conditions. Once that region is identified, the
researcher evaluates the objective function at each corner of the feasible region. One of the corners contains the
optimum solution.
58. Identify three key values found on an Excel answer report.
The final value of the objective function, the final value of the variables, and the amount of slack for each
constraint are the key elements.
59. Describe what a translator function does in a simulation.
There are standard translation functions that can convert the uniformly distributed random numbers to random
numbers from other probability distributions, such as normal or negative exponential. The random numbers
generated can be used as parameters in any application, and the performance of the system can be evaluated.
60. Describe how a simulation can be used to validate models.
Simulation enables the user to evaluate theories under a variety of chance-controlled environments. If the
theories perform well in the simulated environments, it increases the confidence that they will also perform well
in practice. We want to implement only theories or ideas that have a strong likelihood of actually performing
well.
61. Identify three conditions when computer simulation is an appropriate tool for process analysis.
The system has one or more interdependent, random variables.

The system dynamics are extremely complex.
The objective is to observe system behavior over a period of time.
62. Why are simulation models used in decision making?
Testing proposed new operating procedures in an actual operation can be expensive, complicated, and risky to
quality, employees, and equipment.
63. Identify three disadvantages to building simulation models in spreadsheets.
Extensive programming knowledge is often required. It often takes a long time to develop complex models, and
simulations models can require a large amount of computations and can run at a slow speed.
64. Draw the feasible region if at least 200 units of product A are required and at least 100 units of product B
are required by a company.
65. Identify three applications (types of problems) of linear programming.
Product mix problem

Scheduling
Financial mix
stool.
What is the objective function for Sam's product mix problem?
B = number of benches to construct

S = number of stools to construct
Sam wants to maximize his profit.
The objective function is maximize profit for 7B + 5S
stool.
What are the constraints for Sam's Sawmill in terms of Chris's time and Sam's time?
Chris constraint:
4B + 3S £ 240 hours
Sam constraint:
2B + 1S £ 100 hours
stool.
Identify the corner points of the feasible region.

Origin (B = 0, S = 0)
(B = 0, S = 80)
Intersection of constraints (B = 30, S = 40)
(B = 50, S = 0)
Intersection of constraints solution

4B + 3S = 240
2B + 1S = 100
Multiply the second constraint by -3 and add

4B + 3S = 240
-6B - 3S = -300
-2B = -60
Then divide both sides by -2
B = 30
Substitute B = 30 into first equation and solve for S.

4(30) + 3S = 240
3S = 240 - 120 = 120
S = 40
stool.
What is the profit at the corner points of the feasible region? What point maximizes the objective function?
Profit at origin = ($7 * 0) + ($5 * 0) = $0

Profit at (B = 0, S = 80) = ($7 * 0) + ($5 * 80) = $400
Profit at intersection of constraints (B = 30, S = 40) = ($7 * 30) + ($5 * 40) = $410
Profit at (B = 50, S = 0) = ($7 * 50) + ($5 * 0) = $350
The intersection of the constraints maximizes the objective function with $410.
70. For the following sensitivity report, how much would your objective function increase if you acquired more
of constraint A? How much would your objective function increase if you acquired more of constraint B?
Adj
usta
ble
Cell
s
Con
strai
nts
The shadow price is 15 for constraint A, so the objective function will increase $15 for every additional unit of
constraint A.
The shadow price is 5 for constraint B, so the objective function will increase $15 for every additional unit of
constraint B.
71. If a transportation problem has suppliers at four locations and customers at six locations, how many decision
variables are required to solve the transportation problem?
4 manufacturing facilities X 6 customer locations = 24 decision variables
72. For the following sensitivity report, what is the range that the decision variable for product X is valid? What
is the range that the decision variable for product Y is valid? What is the range that constraint A is valid? What
is the range that constraint B is valid?
Adj
usta
ble
Cell
s
Con
strai
nts
Product X is valid between 40 and 73.33.

Product Z is valid between 35 and 52.5.
Constraint A is valid between 200 and 300.
Constraint B is valid between 80 and 120.
73. A process has two constraints. Constraint A is 2X + 2Y £ 14. Constraint B is 4X + 10Y £ 40. All variables
are nonnegative. What are the corner points of the feasible region?
The origin is (X = 0, Y = 0).
The two choices on the X axis are (X = 0, Y = 7) and (X = 0, Y = 4); so (X = 0, Y = 4) should be selected.
The two choices on the X axis are (X = 7, Y = 0) and (X = 10, Y = 0); so (X = 7, Y = 0) should be selected.
The intersection of the two constraints is at (X = 5, Y = 2)

X+Y£7
2X + 5Y £ 20
Multiply the first equation by -5 and add the two equations.

-5X - 5Y £ -35
2X + 5Y £ 20
-3X £ -15
Solve for X, X = 5. Substitute into either equation and solve for Y, Y = 2.
Costs
Center Capacity
X 1 3 2 250
Y 3 4 2 350
Z 2 2 3 400
Adju
stable
Cells
$B$10 X Store A 250 0 1 1 1E+30
$C$10 X Store B 0 1 3 1E+30 1
$D$10 X Store C 0 2 2 1E+30 2
$B$11 Y Store A 50 0 3 1 1
$C$11 Y Store B 100 0 4 1 1
$D$11 Y Store C 200 0 2 2 1E+30
$B$12 Z Store A 0 1 2 1E+30 1
$C$12 Z Store B 400 0 2 1 1E+30
$D$12 Z Store C 0 3 3 1E+30 3
Const
raints
$E$10 X Capacity 250 -2 250 50 0
$E$11 Y Capacity 350 0 350 1E+30 0
$E$12 Z Capacity 400 -2 400 100 0
$B$13 Store A 300 3 300 0 50
$C$13 Store B 500 4 500 0 100
$D$13 Store C 200 2 200 0 200
What is the total minimal shipping cost?
The shipping cost is (250*1) + (50*3) + (100*4) + (200*2) + (400*2) = $2000
Costs
Center Capacity
X 1 3 2 250
Y 3 4 2 350
Z 2 2 3 400
Test Bank for Operations and Supply Chain Management for the 21st Century 1st Edition by Boy
Adju
stable
Cells
$B$10 X Store A 250 0 1 1 1E+30
$C$10 X Store B 0 1 3 1E+30 1
$D$10 X Store C 0 2 2 1E+30 2
$B$11 Y Store A 50 0 3 1 1
$C$11 Y Store B 100 0 4 1 1
$D$11 Y Store C 200 0 2 2 1E+30
$B$12 Z Store A 0 1 2 1E+30 1
$C$12 Z Store B 400 0 2 1 1E+30
$D$12 Z Store C 0 3 3 1E+30 3
Const
raints
$E$10 X Capacity 250 -2 250 50 0
$E$11 Y Capacity 350 0 350 1E+30 0
$E$12 Z Capacity 400 -2 400 100 0
$B$13 Store A 300 3 300 0 50
$C$13 Store B 500 4 500 0 100
$D$13 Store C 200 2 200 0 200
Will the stores have a surplus or shortage?

Will any of the factories have extra capacity?
No outlet will have a shortage because all the demand constraints are binding.
All capacity will be used because all the supply constraints are binding.
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1. The goal of operations research techniques is to optimize organizational performance.

2. Optimization always implies finding the maximum point of a mathematical function.

4. A nonnegativity constraint should never be applied to a linear programming optimization problem.

5. Constraints place limits or restrictions on a given optimization problem.

8. Only minimization problems can be solved graphically.

12. A constraint that is not binding has been completely used.

26. Modeling the check-in process at a hotel is an example of a discrete-event simulation.

31. Which of the following is not considered to be a component of linear programming?

47. What is a translator function?

50. Which of the following is not a common application of a simulation?

51. Which of the following describes business simulations?

53. What is an advantage of using spreadsheet-based simulation models?

59. Describe what a translator function does in a simulation.

60. Describe how a simulation can be used to validate models.

63. Identify three disadvantages to building simulation models in spreadsheets.

65. Identify three applications (types of problems) of linear programming.

What is the objective function for Sam's product mix problem?

Identify the corner points of the feasible region.

The following sensitivity report was also obtained from Excel.

What is the total minimal shipping cost?

The following sensitivity report was also obtained from Excel.

Will the stores have a surplus or shortage?

1. The goal of operations research techniques is to optimize organizational performance.

2. Optimization always implies finding the maximum point of a mathematical function.

4. A nonnegativity constraint should never be applied to a linear programming optimization problem.

5. Constraints place limits or restrictions on a given optimization problem.

8. Only minimization problems can be solved graphically.

12. A constraint that is not binding has been completely used.

26. Modeling the check-in process at a hotel is an example of a discrete-event simulation.

31. Which of the following is not considered to be a component of linear programming?

47. What is a translator function?

50. Which of the following is not a common application of a simulation?

51. Which of the following describes business simulations?

53. What is an advantage of using spreadsheet-based simulation models?

Constraints. Constraints are restrictions placed on the decision scenario.

58. Identify three key values found on an Excel answer report.

59. Describe what a translator function does in a simulation.

60. Describe how a simulation can be used to validate models.

The system has one or more interdependent, random variables.

62. Why are simulation models used in decision making?

65. Identify three applications (types of problems) of linear programming.

Product mix problem

What is the objective function for Sam's product mix problem?

B = number of benches to construct

Sam wants to maximize his profit.

The objective function is maximize profit for 7B + 5S

Identify the corner points of the feasible region.

Intersection of constraints solution

Multiply the second constraint by -3 and add

Substitute B = 30 into first equation and solve for S.

Profit at origin = ($7 * 0) + ($5 * 0) = $0

4 manufacturing facilities X 6 customer locations = 24 decision variables

Product X is valid between 40 and 73.33.

The origin is (X = 0, Y = 0).

The intersection of the two constraints is at (X = 5, Y = 2)

Multiply the first equation by -5 and add the two equations.

Solve for X, X = 5. Substitute into either equation and solve for Y, Y = 2.

What is the total minimal shipping cost?

The shipping cost is (250*1) + (50*3) + (100*4) + (200*2) + (400*2) = $2000

The shipping cost is (2501) + (503) + (1004) + (2002) + (400*2) = $2000