MA609(2)

A firm recently built a new plant that will use more than 50 production lines and machines to produce over 500 different products. The production scheduling decisions are critical because sales will be lost if customer demand is not met on time. Why should the firm consider a quantitative approach to the production scheduling problem?

• A quantitative approach should be considered because the problem is large, complex, important, new, and repetitive

• A quantitative approach should be considered because the problem invoves quantitative variables.

• A quantitative approach should be considered because the problem is a decision problem.

• A quantitative approach should be considered because the problem is a linear programming problem.

Which of the following is a valid objective function for a linear programming problem?

• a. Max 5xy

• b. Min 4x + 3y + (2/3)z

• c. Max 5x² + 6y²

• d. Min (x1 + x2)/x3

Below is a production model

Maximize 10x (objective function)

subject to: 5x < 40 (constraint)

x > 0 (constraint)

Suppose the firm in this example considers a second product that has a unit profit of $5 and requires 2 hours for each unit produced. Assume total production capacity remains 40 units. Use y as the number of units of product 2 produced. What is the mathematical model when both products are considered simultaneously.

• a. Maximize 10x + 5y

• b. 5x + 2y < 40

  x, y > 0

• c. 5x + 2 < 40

  x, y > 0

• d. Maximize 10x + 5y

  s.t.

  5x + 2y < 40

  x, y > 0

Below is a production model

Maximize 10x (objective function)

subject to: 5x < 40 (constraint)

x > 0 (constraint)

Suppose the firm in this example considers a second product that has a unit profit of $5 and requires 2 hours for each unit produced. Assume total production capacity remains 40 units. Use y as the number of units of product 2 produced. What are the controllable input(s) for this model.

• a. X

• b. Y

• c. X and y

• d. None

7. For a maximization problem, the conservative approach is often referred to as

• a. minimax approach.

• b. maximin approach.

• c. maximax approach.

• d. minimin approach.

7. For a maximization problem, the optimistic approach is often referred to as

• a. minimax approach.

• b. maximin approach.

• c. maximax approach.

• d. minimin approach.

States of nature

• a. can describe uncontrollable natural events such as floods or freezing temperatures.

• b. can be selected by the decision maker.

• c. cannot be enumerated by the decision maker.

• d. All of the alternatives are true.

The improvement in the value of the objective function per unit increase in a right-hand side is the

• a. sensitivity value.

• b. shadow price.

• c. constraint coefficient.

• d. slack value.