CD S Ch 6-1
SUPPLEMENT TO CHAPTER 6
MINIMUM SPANNING-TREE PROBLEMS
Chapter 6 focuses on network optimization problems. These are problems that can be described in
terms of a complete network that has both nodes and links (or arcs) and the objective is to
Chapter 5
What-if Analysis for Linear Programming
1
If the optimal solution will remain the same over only a small range of values for
a particular coefficient in the objective function, then management will want to
take special care to narrow this estima
S 12-1
SUPPLEMENT TO CHAPTER 12
THE INVERSE TRANSFORMATION METHOD FOR
GENERATING RANDOM OBSERVATIONS
Section 12.1 mentioned that a general mathematical procedure is available for generating random
observations from either discrete or continuous distributi
CD Chapter 19
Inventory Management with Uncertain Demand
1
The objective of inventory management is to minimize inventory levels.
F
2
The overall objective of inventory management is to balance customer service and
inventory costs.
T
3
The perishable prod
CHAPTER 20
COMPUTER SIMULATION WITH CRYSTAL BALL
SOLUTION TO SOLVED PROBLEMS
20.S1 Saving for Retirement
Patrick Gordon is ten years away from retirement. He has accumulated a $100,000 nest egg that
he would like to invest for his golden years. Furthermor
CD Chapter 16
PERT/CPM Models for Project Management
1
In an Activity-On-Arc project network, the nodes are used to separate an activity
from each of its immediate predecessors.
T
2
If two paths are tied for the longest duration, the one with the most act
Chapter 9
Decision Analysis
1
Prior probabilities refer to the relative likelihood of past events.
F
2
Bayes' decision rule says to choose the alternative with the largest possible payoff.
F
3
The EVPI indicates how much the payoff will be with perfect in
CD 18-1
CHAPTER 18
INVENTORY MANAGEMENT WITH KNOWN DEMAND
Learning Objectives
After completing this chapter, you should be able to
1. Identify the cost components of inventory models.
2. Describe the basic economic order quantity (EOQ) model.
3. Draw a gr
A
B
C
D
E
F
G
H
I
J
K
L
1 Capital Budgeting with Contingency Constraints
2
Project Project Project Project Project Project Project Project
3
1
2
3
4
5
6
7
8
4
NPV ($million) 10
12
11
15
24
17
16
18
5
Total
6
Cash Outflow Required ($million)
Outflow
7
Year
CHAPTER 8
NONLINEAR PROGRAMMING
SOLUTION TO SOLVED PROBLEMS
8.S1 Airline Ticket Pricing Model
Business travelers tend to be less price sensitive than leisure travelers. Knowing this, airlines
have discovered that extra profit can be
A
1
2
3
4
5
6
7
8
9
10
11
12
13
B
C
D
E
F
G
H
I
J
K
L
=
=
=
=
=
=
=
=
Supply/Demand
400
250
0
0
-200
-100
-150
-200
M
N
O
Range Name
Capacity
Flow
From
NetFlow
Nodes
SupplyDemand
To
TotalCost
UnitCost
Cells
F4
D4:D11
B4:B11
J4:J11
I4:I11
L4:L11
C4:C11
D13
CHAPTER 6
NETWORK OPTIMIZATION PROBLEMS
SOLUTION TO SOLVED PROBLEMS
6.S1 Distribution at Heart Beats
Heart Beats is a manufacturer of medical equipment. The companys primary product is a
device used to monitor the heart during medica
A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
B
C
D
E
F
G
H
I
J
K
RangeName
Forecast
ForecastingError
MAD
MSE
TrueValue
L
M
N
Cells
D5:D34
E5:E34
H5
H8
C5:C34
Template for Last-Value Forecasting Method
Time
Chapter 13
Computer Simulation with Risk Solver Platform
1
To use RSPE, the results cell must be a linear function.
F
2
The standard error gives an indication of how accurate the estimated mean is.
T
3
The Likelihood box in RSPE indicates how certain it i
CHAPTER 1
INTRODUCTION
SOLUTION TO SOLVED PROBLEMS
1.S1 Make or Buy
Power Notebooks, Inc. plans to manufacture a new line of notebook computers. Management is
trying to decide whether to purchase the LCD screens for the computers from an outside supplier
CD Chapter 17
Goal Programming
1
The overall objective for a goal programming problem is to determine the most
important objective in the problem.
F
2
Goal programming provides two alternative ways of formulating problems with
multiple goals: preemptive a
Chapter 4
The Art of Modeling with Spreadsheets
1
There is only one correct way to set up a spreadsheet model.
F
2
In the Everglade Golden Years Company problem, the long-term loan had a lower
interest rate than the short-term loan.
T
3
When sketching out
CHAPTER 13
COMPUTER SIMULATION WITH RISK SOLVER PLATFORM
SOLUTION TO SOLVED PROBLEMS
13.S1 Saving for Retirement
Patrick Gordon is ten years away from retirement. He has accumulated a $100,000 nest egg
that he would like to invest fo
Chapter 10
Forecasting
1
Removing the seasonal component from a time-series can be accomplished by
multiplying each value by its appropriate seasonal factor.
F
2
The last-value forecasting method is most useful when conditions are stable over
time.
F
3
A
CD Chapter 18
Inventory Management with Known Demand
1
Administrative costs provide a strong incentive to place smaller orders.
F
2
Interest, insurance, and opportunity costs are all associated with ordering costs.
F
3
An inventory system whose current in
Chapter 3
Linear Programming: Formulation and Applications
1
When formulating a linear programming model on a spreadsheet, the constraints
are located in the data cells.
F
2
A mathematical model will be an approximation of the real problem.
T
3
Linear pro
CD 16-1
CHAPTER 16
PERT/CPM MODELS FOR PROJECT MANAGEMENT
Learning objectives
After completing this chapter, you should be able to
1. Describe the kind of help that PERT/CPM can provide a project manager.
2. Identify the types of information needed to con
Chapter 12
Computer Simulation: Basic Concepts
1
Simulation models are fairly complicated and can only be used for specific
decisions.
F
2
When dealing with relatively complex systems, computer simulation is an
expensive option for decision makers.
T
3
Ra
CHAPTER 2
LINEAR PROGRAMMING: BASIC CONCEPTS
SOLUTION TO SOLVED PROBLEMS
2.S1 Back Savers Production Problem
Back Savers is a company that produces backpacks primarily for students. They are considering
offering some combination of two different modelsthe
CHAPTER 9
DECISION ANALYSIS
SOLUTION TO SOLVED PROBLEMS
9.S1 New Vehicle Introduction
The General Ford Motors Corporation (GFMC) is planning the introduction of a brand new
SUVthe Vector. There are two options for production. One i
A
B
C
D
1 Production and Inventory Planning
2
Unit Cost (Reg) $125
3
Unit Cost (OT) $135
4
Selling Price $200
5
Holding Cost
$5
6
Starting Inventory
5
7
8
Jan
Feb
9
Regular Production
10
14
10
<=
<=
11
Max Regular
50
50
12
13
OT Production
0
0
14
<=
<=
15