1

Choose all correct answers. Note: You must choose all correct answers to get credit.

In a linear programming problem"a decision"

1. is the optimum choice amongst alternative courses of action
2. is represented in the model by decision variables
3. May not be possible. We may get an unbounded model
4. None of the above.

QUESTION 2

Note: Must chooseALL the correct answers to get credit.

Non-negativity constraints in an optimization model

1. May restrict all quantities to absolute values
2. Restrict the variables to zero or positive
3. Restrict the variables to a slack variable.
4. Restrict the variables to negative values
5. None of the above

QUESTION 3

Given the price list below, determine the order size that will minimize the total of annual holding, ordering, and purchasing costs. Annual demand is 500 units, ordering cost is $25, and holding cost is $10 per unit a year.

QuantityUnit Price1 to 20 $180

21 to 30 $178

31 to 40 $175

41 or more $174

1. 18
2. 50
3. 27
4. 86

QUESTION 4

Maximize Profit= 7x1+ 4x2

Subject to: 6x1+ 3x2 10

5x1+20x2 220

X1, x20

Find the optimal profit in dollars.

1. 40/3
2. 12/5
3. 11/3
4. 43/3

QUESTION 5

Let x1 be the number of units to make and x2 be the number of units to buy. If it costs $1.5 to Make a unit and $4 to buy a unit and 4000 units are needed, what is the objective function?

1.Max 1.5x1+4x2

2.Min 1.5x1+4x2

3.Min 4000 (x1+x2)

4.Max 6000x1+16000x2

5.Min 6000x1+16000x2

QUESTION 6

1. Balanced transportation problems have the following type of constraints:

1.

2.

3.=

4.<

5.None of the above

QUESTION 7

1. __________ is maximized in the objective function by subtracting cost from revenue.

1.Profit

2.Revenue

3.Cost

4.Productivity

QUESTION 8

In a balanced transportation model where supply equals demand,

1.All constraints are equalities

2.None of the constraints are equalities

3.All constraints are inequalities

4.None of the constraints are inequalities

QUESTION 9

In a transportation problem, items are allocated from sources to destinations

1.At a maximum cost

2.At a minimum cost

3.At a minimum profit

4.At a minimum revenue

QUESTION 10

The linear programming model for a transportation problem has constraints for supply at each __________ and __________ at each destination.

1.Destination, source

2.Source, destination

3.Demand, source

4.Source, demand