heizer_om13_ism_ModB.doc - 436 BUSINESS ANALYTICS MODULE...

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436 BUSINESS ANALYTICS MODULE B L INEAR P ROGRAMMING B U S I N E S S A N A L Y T I C S M O D U L E Linear Programming D ISCUSSION Q UESTIONS 1. Students may select from eight LP applications given in the introduction: school bus scheduling, police patrol allocation, scheduling bank tellers, selecting product mix, picking blends to minimize cost, minimizing shipping cost, developing production schedules, and allocating space. LO B.1: Formulate linear programming models, including an objective function and constraints AACSB: Reflective thinking 2. LP theory states that the optimum lies on a corner. All three solution techniques make use of the “corner point” feature. LO B.3: Graphically solve an LP problem with the corner-point method AACSB: Reflective thinking 3. The feasible region is the area bounded by the set of problem constraints. A feasible solution is any combination of x, y coordinates (or x 1, x 2 coordinates) that is in or on the feasible region. LO B.2: Graphically solve an LP problem with the iso-profit line method AACSB: Reflective thinking 4. Each LP problem that has been formulated correctly does have an infinite number of possible solutions. Any point within the feasible region is a solution that satisfies all constraints (although it is not necessarily optimal). In addition, for any problem in which the optimal solution lies on a constraint that is parallel to the objective function, all points along that constraint are also both feasible and optimal. LO B.2: Graphically solve an LP problem with the iso-profit line method AACSB: Reflective thinking 5. The objective function contains the profit or cost information that enables us to determine whether one solution is better than an-other solution. Our choice of best depends only on the objective. LO B.1: Formulate linear programming models, including an objective function and constraints AACSB: Reflective thinking 6. Before activity values can be placed into the objective, they must meet the constraints. Notice that the objective function has no minimum-required profit level unless it is included as a constraint. LO B.1: Formulate linear programming models, including an objective function and constraints AACSB: Reflective thinking 7. As long as the costs do not change, the diet problem always provides the same answer. In other words, the diet is the same every day. Unlike animals, people enjoy variety, and variety cannot be included as a linear constraint.
437 BUSINESS ANALYTICS MODULE B L INEAR P ROGRAMMING LO B.6: Formulate production-mix, diet, and labor scheduling problems AACSB: Reflective thinking 8. The number of feasible solutions is infinite. We only need to consider extreme points—corner points—to find the optimal solution. If we use iso-profit lines, we only need to examine one corner point to determine the optimal solution.

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