9: LINEAR PROGRAMMING APPLICATIONS
MULTIPLE CHOICE
1.
Media selection problems usually determine
a.
how many times to use each media source.
b.
the coverage provided by each media source.
c.
the cost of each advertising exposure.
d.
the relative value of each medium.
2.
To study consumer characteristics, attitudes, and preferences, a company would engage in
a.
client satisfaction processing.
b.
marketing research.
c.
capital budgeting.
d.
production planning.
3.
A marketing research application uses the variable HD to represent the number of homeowners
interviewed during the day.
The objective function minimizes the cost of interviewing this and other
categories and there is a constraint that HD >
100.
The solution indicates that interviewing another
homeowner during the day will increase costs by 10.00.
What do you know?
a.
the objective function coefficient of HD is 10.
b.
the dual price for the HD constraint is 10.
c.
the objective function coefficient of HD is 10.
d.
the dual price for the HD constraint is 10.
4.
The dual price for a constraint that compares funds used with funds available is .058.
This means that
a.
the cost of additional funds is 5.8%.
b.
if more funds can be obtained at a rate of 5.5%, some should be.
c.
no more funds are needed.
d.
the objective was to minimize.
5.
Let M be the number of units to make and B be the number of units to buy. If it costs $2 to make a unit
and $3 to buy a unit and 4000 units are needed, the objective function is
a.
Max 2M + 3B
b.
Min 4000 (M + B)
c.
Max 8000M + 12000B
d.
Min 2M + 3B
6.
If P
ij
= the production of product i in period j, then to indicate that the limit on production of the
company’s three products in period 2 is 400,
a.
P
21
+ P
22
+ P
23
<
400
b.
P
12
+ P
22
+ P
32
<
400
c.
P
32
<
400
d.
P
23
<
400
7.
Let P
ij
= the production of product i in period j.
To specify that production of product 1 in period 3 and
in period 4 differs by no more than 100 units,
a.
P
13
 P
14
<
100;
P
14
 P
13
<
100
b.
P
13
 P
14
<
100;
P
13
 P
14
>
100
c.
P
13
 P
14
<
100;
P
14
 P
13
>
100
d.
P
13
 P
14
>
100;
P
14
 P
13
>
100
8.
Let A, B, and C be the amounts invested in companies A, B, and C. If no more than 50% of the total
investment can be in company B, then
1
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Chapter 9
Linear Programming Applications
a.
B <
5
b.
A  .5B + C <
0
c.
.5A  B  .5C <
0
d.
.5A + .5B  .5C <
0
9.
Department 3 has 2500 hours.
Transfers are allowed to departments 2 and 4, and from departments 1
and 2.
If A
i
measures the labor hours allocated to department i and T
ij
the hours transferred from
department i to department j, then
a.
T
13
+ T
23
 T
32
 T
34
 A
3
= 2500
b.
T
31
+ T
32
 T
23
 T
43
+ A
3
= 2500
c.
A
3
+ T
13
+ T
23
 T
32
 T
34
= 2500
d.
A
3
 T
13
 T
23
+ T
32
+ T
34
= 2500
10.
Modern revenue management systems maximize revenue potential for an organization by helping to
manage
a.
pricing strategies.
b.
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 Spring '10
 ADMS3330
 Linear Programming, Optimization, Linear Programming Applications

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