Brs Mdm3 Tif Ch06 Essay

Submitted By Jun-Lim
Words: 2861
Pages: 12

Managerial Decision Modeling w/ Spreadsheets, 3e (Balakrishnan/Render/Stair)
Chapter 6 Integer, Goal, and Nonlinear Programming Models

6.1 Chapter Questions

1) These are problems in which some, but not all, the decision variables must have integer solutions:
A) mixed IP problems
B) pure IP problems
C) pure binary problems
D) mixed binary IP problems
E) goal programming problems
Answer: A
Page Ref: 212
Topic: Introduction
Difficulty: Easy

2) These are problems in which all decision variables must have integer solutions:
A) mixed binary IP problems
B) pure binary IP problems
C) mixed IP problems
D) pure IP problems
E) goal programming problems
Answer: D
Page Ref: 212
Topic: Introduction
Difficulty: Easy

3) Rounding off the solution to an LP relaxed problem may yield:
A) an infeasible solution
B) a non-optimal solution
C) a higher objective function value
D) an unbounded solution
E) A or B
Answer: E
Page Ref: 212
Topic: Models with General Integer Variables
Difficulty: Moderate
4) A company wants to select 2 products from a set of four possible products. Which of the following constraints ensures that no more than 3 will be selected?
A) XA + XB + XC + XD = 3
B) XA + XB + XC + XD ≥ 0
C) XA + XB + XC + XD ≤ 3
D) XA + XB + XC + XD ≥ 3
E) XA + XB + XC + XD ≠ 3
Answer: C
Page Ref: 222
Topic: Models with Binary Variables
Difficulty: Moderate

5) A company wants to select one product from a set of 3 possible products. Which of the following ensures that only one product will be selected?
A) XA + XB + XC = 1
B) XA + XB + XC ≤ 1
C) XA + XB + XC ≥ 1
D) XA + XB + XC ≥ 0
E) XA - XB - XC = 1
Answer: A
Page Ref: 222
Topic: Models with Binary Variables
Difficulty: Moderate

6) If a company produces product A then it must also produce either product B or product C. Which of the following constraints enforces this condition?
A) XA - XB - XC ≥ 0
B) XA + XB + XC ≤ 2
C) XA + (XB - XC) ≤ 0
D) XA + XB + XC ≥ 2
E) XA - XB - XC ≤ 0
Answer: E
Page Ref: 222
Topic: Models with Binary Variables
Difficulty: Moderate
7) Which type of cost is independent of the volume of production?
A) inventory cost
B) marginal cost
C) sunk cost
D) variable cost
E) fixed charge
Answer: E
Page Ref: 226
Topic: Mixed Integer Models: Fixed-Charge Problems
Difficulty: Easy

8) A company incurs a cost that is directly proportional to the magnitude of the decision variable. This is an example of a:
A) fixed charge
B) sunk cost
C) variable cost
D) marginal cost
E) inventory cost
Answer: C
Page Ref: 226
Topic: Mixed Integer Models: Fixed-Charge Problems
Difficulty: Easy

9) Consider a model with 3 ranked goals. Solving this model requires us to solve:
A) a single LP problem
B) 3 separate LP problems
C) 2 separate LP problems
D) a single quadratic programming problem
E) 3 quadratic programming problems
Answer: B
Page Ref: 238
Topic: Goal Programming Models
Difficulty: Moderate

10) If a company produces Product A, then it must produce at least 200 units of Product A. Which of the following constraints model this condition?
A) X1Y1 ≤ 200
B) X1 ≥ 200 + Y1
C) X1 ≤ 200Y1
D) X1 - 200Y1 ≥ 0
E) X1 > 200
Answer: D
Page Ref: 244
Topic: Nonlinear Programming Models
Difficulty: Moderate
11) An investment strategy restricts the portfolio to a mix of two stocks A and B with the following price/share and annual returns:

Stock Price/Share Annual Return A $35 5% B $45 7%

Assume that the maximum amount available for investment is $100,000 with the following 2 prioritized investment goals:

Rank R1: Obtain an annual return of at least 6%.
Rank R2: Limit the investment in stock B to no more than 55% of the total investment.

Assume X1 = dollar amount allocated to stock A, and X2 = dollar amount allocated to stock B.

What is the objective function?
A) Min d1+ + d2-
B) Min R2(d1+) + R1(d2-)
C) Min R1(d1-) - R2(d2+)
D) Min R1(d1+) + R2(d2-)
E) Min R1(d1-) + R2(d2+)
Answer: E
Page Ref: 237
Topic: Goal Programming Models
Difficulty: Moderate

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