midterm 1b solved spring 07 - 1 Considering the LP...

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1 of 4 1) Considering the LP formulation below, which of the following statements is false ? max 2·X + 3·Y s.t. X + Y 5 X + Y 2 X , Y 0 a) (2,0) is a feasible solution. b) (0,5) is an optimal solution. c) The objective function value of an optimal solution will be greater than 10. d) There is no optimal solution. e) None of the above. 2) Considering the LP formulation below, write (next to it) the optimal values of the decision variables and of the objective function: min 3·X + 2·Y s.t. X + Y 5 X = 0 X + Y 2 Y = 2 X , Y 0 Objective function value = 4 3) Which of the following statements is false ? a) The utilization rate of a process cannot be greater than 1. b) Customers may very well need to wait-in-line even if the utilization rate of a service process is smaller than 1. c) The bottleneck in a production process may shift if we increase its capacity. d) Postponing a capacity investment decision to allow for the resolution of uncertainty in demand will al- ways result in a higher expected total profit. e) None of the above. 4) In dealing with uncertainty in Amazon.com’s delivering process, one alternative (as it was discussed in class) is to transfer its inventory to a distributor. Which of the following is not an advantage of this policy? a) Risk pooling. b) Economies of scale in purchasing. c) Better access to salvage markets. d) Faster delivery times. d) is OK, too e) None of the above 5) Cisco’s product portfolio of routers includes integrated services routers, multiservice access routers, wire- less and mobile routers, modular access routers, and secure broadband routers. Cisco is often accused of ex- tending “easy” credit to most of its customers and thus having tough time later collecting on goods deliv- ered. To validate this criticism, you read though Cisco’s most recent quarterly report where it is stated that its account receivables as of last October were $3.1B on sales of $21.12B. According to this, how long does it take for a typical customer to pay Cisco’s invoice? TT = WIP TR = $3.1B $21.12B/year = 0.1468 years 53.6 days
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2 of 4 6) Because of your brother’s “super-terrific” birthday party last Saturday, you now need to buy a new couch.
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