Question 20

If we are solving a 0-1 integer programming problem, the constraint x1 = x2 is a __________ constraint.

Question 21

The following table represents the cost to ship from Distribution Center 1, 2, or 3 to Customer A, B, or C.

The constraint that represents the quantity demanded by Customer B is:

Question 22

A professor needs help from 3 student helpers to complete 4 tasks.  The first task is grading; the second is scanning; the third is copying, and the fourth is organizing student portfolios.  The estimated time for each student to do each task is given in the matrix below.

Which of the following constraints represents the assignment for student A?

Question 23

Mutually exclusive events are:

Question 24

Jim is considering pursuing an MS in Information Systems degree. He has applied to two different universities. The acceptance rate for applicants with similar qualifications is 20% for University X and 45% for University Y. What is the probability that Jim will not be accepted at either university?

Question 25

Determining the worst payoff for each alternative and choosing the alternative with the best worst is called :

Question 26

A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff table based on whether business is brisk or slow.

Question 27

For the following frequency distribution of demand, the random number 0.8177 would be interpreted as a demand of:

Question 28

In the Monte Carlo process, values for a random variable are generated by __________ a probability distribution.

Question 29

Given an actual demand of 59, a previous forecast of 64, and an alpha of .3, what would the forecast for the next period be using simple exponential smoothing?

Question 30

__________ moving averages react more slowly to recent demand changes than do __________ moving averages.

Question 31

A production process requires a fixed cost of \$50,000. The variable cost per unit is \$25 and the revenue per unit is projected to be \$45.  Find the break-even point.

Question 32

Tracksaws, Inc. makes tractors and lawn mowers. The firm makes a profit of \$30 on each tractor and \$30 on each lawn mower, and they sell all they can produce. The time requirements in the machine shop, fabrication, and tractor assembly are given in the table.

Formulation:

Let                   x = number of tractors produced per period

y = number of lawn mowers produced per period

MAX 30x + 30y

subject to   2 x + y       ≤ 60

2 x + 3y     ≤ 120

x ≤ 45

x, y  ≥ 0

The graphical solution is shown below.

What is the shadow price for fabrication?  Write your answers with two significant places after the decimal and do not include the dollar “\$” sign.

Question 33

Consider   the following linear program, which maximizes profit for two products,   regular (R), and super (S):
MAX
50R + 75S
s.t.
1.2R   + 1.6 S ≤ 600 assembly (hours)
0.8R   + 0.5 S ≤ 300 paint (hours)
.16R   + 0.4 S ≤ 100 inspection (hours)
Sensitivity Report:

Final

Reduced

Objective

Allowable

Allowable

Cell

Name

Value

Cost

Coefficient

Increase

Decrease

\$B\$7

Regular =

291.67

0.00

50

70

20

\$C\$7

Super =

133.33

0.00

75

50

43.75

Final

Constraint

Allowable

Allowable

Cell

Name

Value

Price

R.H. Side

Increase

Decrease

\$E\$3

Assembly (hr/unit)

563.33

0.00

600

1E+30

36.67

\$E\$4

Paint (hr/unit)

300.00

33.33

300

39.29

175

\$E\$5

Inspect (hr/unit)

100.00

145.83

100

12.94

40

A change in the market has increased the profit on the super product by \$5.   Total profit will increase by __________. Write your answers with two   significant places after the decimal and do not include the dollar “\$” sign.
Question 34

Kitty Kennels provides overnight lodging for a variety of pets. An attractive feature is the quality of care the pets receive, including well balanced nutrition. The kennel’s cat food is made by mixing two types of cat food to obtain the “nutritionally balanced cat diet.” The data for the two cat foods are as follows:

Kitty Kennels wants to be sure that the cats receive at least 5 ounces of protein and at least 3 ounces of fat per day. What is the optimal cost of this plan? Write your answers with two significant places after the decimal and do not include the dollar “\$” sign.

Question 35

Find the optimal Z value for the following problem. Do not include the dollar “\$” sign with your answer.

MAX Z = 5×1 + 8×2

s.t.             x1 + x2 ≤ 6

5×1 + 9×2 ≤ 45

x1, x2 ≥ 0 and integer

Question 36

A company markets educational software products, and is ready to place three new products on the market. Past experience has shown that for this particular software, the chance of “success” is 80%. Assume that the probability of success is independent for each product. Find the probability that at least two of the three is successful. Round your result to four significant places after the decimal.

Question 37

The local operations manager for the IRS must decide whether to hire 1, 2, or 3 temporary workers. He estimates that net revenues will vary with how well taxpayers comply with the new tax code. The probabilities of low, medium, and high compliance are 0.20, 0.30, and 0.50 respectively. What are the expected net revenues for the number of workers he will decide to hire? Do not include the dollar “\$” sign with your answer.

Question 38

An investor is consider 4 different opportunities, A, B, C, or D.  The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below.

.

.                                                            Economic Condition

.                                        Poor           Average       Good        Excellent

.                    Investment      (S1)              (S2)           (S3)          (S4)

.                           A               50                  75              20              30

.                           B               80                  15              40              50

.                           C           -100                 300             -50              10

.                           D               25                  25              25              25

.

Suppose all states of the world are equally likely (each state has a probability of 0.25). What is the expected value of perfect information? Round your answer to the nearest integer.

Question 39

Consider the following decision tree. The objective is to choose the best decision among the two available decisions A and B. Find the expected value of the best decision. Do not include the dollar “\$” sign with your answer.

Question 40

Recent past demand for product ZXT is given in the following table.