Chapter 1

Management Science

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

1) Management science involves the philosophy of approaching a problem in a subjective manner. F

2) Management science techniques can be applied only to business and military organizations. F

3) Once management scientist makes his or her decision and recommendation to management, then typically, his
or her involvement with the problem is finished. F

4) A variable is a value that is usually a coefficient of a parameter in an equation. F

5) Parameters are known, constant values that are usually coefficients of variables in equations. T

6) Data are pieces of information from the problem environment. T

7) A model is a mathematical representation of a problem situation including variables, parameters, and

equations. T

8) A management science technique usually applies to a specific model type. T

9) The first step of the management science process is to define the problem. F

10) Management science modeling techniques provide results that are known with certainty. F

11) The term sensitivity analysis refers to testing how a problem solution reacts to changes in one or more of the
model parameters. T

12) Fixed costs depend on the number of items produced. F

13) Variable costs depend on the number of items produced. T

14) Fixed cost is the difference between total cost and total variable cost. T

15) The break even point is the volume that equates total revenue with total cost. T

16) In general, an increase in price increases the break even point if all costs are held constant. F

17) If variable costs increase, but price and fixed costs are held constant, the break even point will decrease. F

18) Managers utilize spreadsheets to conduct their own analyses in management science studies. T

19) Management science techniques focus primarily on observation, model construction and implementation to
find an appropriate solution to a problem. F
 Chapter 2
Linear Programming: Model Formulation and Graphical Solution

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

1) In the term linear programming, the word programming comes from the phrase "computer programming." F

2) One of the assumptions of LP is "simultaneity." F

3) Any linear programming problem can be solved using the graphical solution procedure. F

4) An LP formulation typically requires finding the maximum value of an objective while simultaneously
maximizing usage of the resource constraints. F

5) There are no limitations on the number of constraints or variables that can be graphed to solve an LP
problem. F

6) Resource restrictions are called constraints. T

7) One of the assumptions of LP is "proportionality." T

8) The set of solution points that satisfies all of a linear programming problem's constraints simultaneously is
defined as the feasible region in graphical linear programming. T

9) An objective function is necessary in a maximization problem but is not required in a minimization problem.
F

10) In some instances, an infeasible solution may be the optimum found by the corner point method. F

11) The rationality assumption implies that solutions need not be in whole numbers (integers). F

12) The solution to a linear programming problem must always lie on a constraint. T

13) In a linear program, the constraints must be linear, but the objective function may be nonlinear. F

14) Resource mix problems use LP to decide how much of each product to make, given a series of resource
restrictions. F

15) The existence of non-negativity constraints in a two-variable linear program implies that we are always
working in the northwest quadrant of a graph. F

16) In linear programming terminology, "dual price" and "sensitivity price" are synonyms. F

17) Any time that we have an isoprofit line that is parallel to a constraint, we have the possibility of multiple
solutions. T

18) If the isoprofit line is not parallel to a constraint, then the solution must be unique. T
 19) When two or more constraints conflict with one another, we have a condition called unboundedness. F

20) The addition of a redundant constraint lowers the isoprofit line. F

21) Sensitivity analysis enables us to look at the effects of changing the coefficients in the objective function, one at a
time. T

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
22) A widely used mathematical programming technique designed to help managers and decision making relative
to resource allocation is called ________.
A) goal programming
B) linear programming
C) computer programming
D) constraint programming
E) None of the above
ANSWER: B
23) Typical resources of an organization include ________.
A) raw material usage
B) machinery usage
C) warehouse space utilization
D) labor volume
E) All of the above
ANSWER: E
24) Which of the following is not a property of all linear programming problems?
A) the presence of restrictions
B) a computer program
C) optimization of some objective
D) usage of only linear equations and inequalities
E) alternate courses of action to choose from
ANSWER: B
25) A feasible solution to a linear programming problem
A) need not satisfy all of the constraints, only the non-negativity constraints.
B) must be a corner point of the feasible region.
C) must give the maximum possible profit.
D) must satisfy all of the problem's constraints simultaneously.
E) must give the minimum possible cost.
ANSWER: D
26) Infeasibility in a linear programming problem occurs when
A) there is an infinite solution.
B) more than one solution is optimal.
C) the feasible region is unbounded.
D) a constraint is redundant.
E) there is no solution that satisfies all the constraints given.
ANSWER: E
27) In a maximization problem, when one or more of the solution variables and the profit can be made infinitely
large without violating any constraints, the linear program has
A) an infeasible solution.
B) alternate optimal solutions.
C) an unbounded solution.
D) a redundant constraint.
E) None of the above
ANSWER: C
28) Which of the following is not a part of every linear programming problem formulation?
A) a set of constraints
B) a redundant constraint
C) maximization or minimization of a linear function
D) an objective function
E) non-negativity constraints
ANSWER: B
29) When appropriate, the optimal solution to a maximization linear programming problem can be found by
graphing the feasible region and
A) finding the profit at every corner point of the feasible region to see which one gives the highest value.
B) locating the point that is highest on the graph.
C) moving the isoprofit lines towards the origin in a parallel fashion until the last point in the feasible region
is encountered.
D) None of the above
E) All of the above
ANSWER: A
30) The mathematical theory behind linear programming states that an optimal solution to any problem will lie at
a(n) ________ of the feasible region.
A) interior point or extreme point
B) maximum point or minimum point
C) corner point or extreme point
D) interior point or center
E) None of the above
ANSWER: C
31) Which of the following is not a property of linear programs?
A) alternative courses of action
B) one or more constraints
C) one objective function
D) at least two separate feasible regions
E) objective function and constraints are linear
ANSWER: D

32) The corner point solution method

A) will yield different results from the isoprofit line solution method.
B) requires that all corners created by all constraints be compared.
C) will not provide a solution at an intersection or corner where a non-negativity constraint is involved.
D) requires that the profit from all corners of the feasible region be compared.
E) will always provide one, and only one, optimum.
ANSWER: D
33) When a constraint line bounding a feasible region has the same slope as an isoprofit
line,
A) there may be more than one optimum solution.
B) the problem involves redundancy.
C) a condition of infeasibility exists.
D) an error has been made in the problem formulation.
E) None of the above
ANSWER: A
34) The simultaneous equation method is
A) useful only in minimization methods.
B) an alternative to the corner point method.
C) useful only when more than two product variables exist in a product mix problem.
D) an algebraic means for solving the intersection of two or more constraint
equations.
E) None of the above
ANSWER: C
35) Consider the following linear programming problem:
Maximize 12X + 10Y
Subject to: 4X + 3Y 480
2X + 3Y 360
all variables 0

The maximum possible value for the objective function is

A) 1520.
B) 360.
C) 1560.
D) 480.
E) None of the above
ANSWER: A
36) Consider the following linear programming problem:

Maximize 4X + 10Y
Subject to: 3X + 4Y 480
4X + 2Y 360
all variables 0

The feasible corner points are (48,84), (0,120), (0,0), (90,0). What is the maximum possible value for the objective
function?
A) 1032
B) 360
C) 1600
D) 1200
E) None of the above
ANSWER: D
37) Consider the following linear programming problem:

Maximize 5X + 6Y
Subject to: 4X + 2Y 420
1X + 2Y 120
all variables 0

Which of the following points (X,Y) is not a feasible corner point?

A) (120,0)
B) (105,0)
C) (100,10)
D) (0,60)
E) None of the above
ANSWER: A
38) Consider the following linear programming problem:

Maximize 5X + 6Y
Subject to: 4X + 2Y 420
1X + 2Y 120
all variables 0

Which of the following points (X,Y) is not feasible?

A) (50,40)
B) (60,30)
C) (90,10)
D) (20,50)
E) None of the above
ANSWER: A
39) Two models of a product — Regular (X) and Deluxe (Y) — are produced by a company. A linear programming
model is used to determine the production schedule. The formulation is as follows:

Maximize profit = 50X + 60 Y

Subject to: 8X + 10Y 800 (labor hours)
X + Y 120 (total units demanded)
4X + 5Y 500 (raw materials)
all variables 0

The optimal solution is X = 100, Y = 0.

How many units of the regular model would be produced based on this solution?
A) 100
B) 0
C) 50
D) 120
E) None of the above
ANSWER: A