Test 1 Cheat Sheet

Test 1 Cheat Sheet - Operations Research: a scientific...

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Operations Research: a scientific approach to decision making that seeks to best design and operate a system, usually under conditions requiring the allocation of scarce resources. Originated during WWII when British military leaders asked scientists and engineers to analyze several military problems such as the deployment of radar and the management of convoy, bombing, antisubmarine, and mining operations. Break-Even Point: Revenue = Total Costs; want Profit = 0 The production quantity that yields a zero profit (total costs = total revenues) Total Profit: Profits = Revenue – Costs Costs = Fixed Costs + Variable Costs Revenues = Sales * Selling Price Fixed Costs: Costs that don’t change. Variable Costs: Variable Costs = Direct Labor Costs + Direct Material Costs = Unit Labor Costs*Sales + Unit Material Costs*Sales Marginal Revenue: Average change in revenue per unit increase in output. Marginal Cost: Average change in cost per unit increase in output. Marginal Cost at any point q = slope of the tangent line to the cost curve at that point. Maximum Profit:
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This note was uploaded on 04/17/2008 for the course CSA 273 taught by Professor Patton during the Spring '08 term at Miami University.

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Test 1 Cheat Sheet - Operations Research: a scientific...

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