MBA 620 Exam 1

Break-even Point Answer- The production and sales volume for a product that must be exceeded to achieve a profit Business Analytics Answer- A discipline closely related to management science that makes extensive use of data to analyze trends, make forecasts, and apply optimization techniques Constraint Answer- An inequality or equation in a mathematical model that expresses some restrictions on the values that can be assigned to the decision variables Decision Support System Answer- An interactive computer-based system that aids managerial decision making Decision Variable Answer- An algebraic variable that represents a quantifiable decision to be made Mathematical Model Answer- An approximate representation of, for example, a business problem that is expressed in terms of mathematical symbols and expressions Model Answer- An approximate representation of something MS Courseware Answer- The name of the software package that is shrink-wrapped with the book or is on its website Objective Function Answer- A mathematical expression in a model that gives the measure of performance for a problem in terms of the decision variables Operations Research Answer- The traditional name for management science that is still widely used outside of business schools Parameter Answer- One of the constants in a mathematical model Range Name Answer- A descriptive name given to a cell or range of cells that immediately identifies what is there Spreadsheet Models Answer- An approximate representation of, for example, a business problem that is laid out on a spreadsheet in a way that facilitates analysis of the problem What-If Analysis Answer- Analysis of how the recommendations of a model might change if any of the estimates providing the numbers in the model eventually need to be corrected Absolute Reference Answer- A reference to a cell (or a column or row) with a fixed address, as indicated either by using a range name or by placing a $ in front of the letter and number of the cell reference Changing Cells Answer- The cells in the spreadsheet that show the values of the decision variables Constraint 2 Answer- A restriction on the feasible values of the decision variables Constraint Boundary Equation Answer- The equation for the constraint boundary line Constraint Boundary Line Answer- For linear programming problems with two decision variables, the line forming the boundary of the solutions that are permitted by the constraint Data Cells Answer- The cells in the spreadsheet that show the data of the problem Decision Variable 2 Answer- An algebraic variable that represents a decision regarding the level of a particular activity. The value of the decision variable that appears in a changing cell on the spreadsheet Feasible Region Answer- The geometric region that consists of all the feasible solutions Feasible Solution Answer- A solution that simultaneously satisfies all the constraints in a linear programming model Functional Constraint Answer- A constraint with a function of all the decision variables on the left-hand side. All constraints in a linear programming model that are not non- negativity constraints Graphical Method Answer- A method for solving linear programming problems with two decision variables on a two dimensional graph Infeasible Solution Answer- A solution that violates at least one of the constraints in the linear programming model Linear Programming Model Answer- A mathematical model that represents a linear programming problem Non-negativity Constraint Answer- A constraint that expresses the restriction that a particular decision variable must be non-negative Objective Cell Answer- The cell in the spreadsheet that shows the overall measure of performance of the decisions Objective Function Answer- The part of the linear programming model that expresses what needs to either be maximized or minimized, depending on the objective of the problem Objective Function Line Answer- For a linear programming problem with two decision variables, a line whose points all have the same value of the objective function Optimal Solution Answer- The best feasible solution according to the objective function Output Cells Answer- The cells in the spreadsheet that provides output that depends on changing cells These cells frequently are used to help specify constraints Parameter 2 Answer- The parameters of a linear programming model are the constants (coefficients or right-hand sides) in the functional constraints and the objective function. Each parameter represents a quantity (the amount available of a resource) that is of importance for the analysis of the problem Product-mix Problem Answer- A type of linear programming problem where the objective is to find the most profitable mix of production levels for the product under consideration Relative Reference Answer- A reference to a cell whose address is based upon its position relative to the cell containing the formula Solution Answer- Any single assignment of values to the decision variables, regardless of whether the assignment is a good one or even a feasible one Solver Answer- The spreadsheet tool that is used to specify the model in the spreadsheet and then to obtain an optimal solution for the model Assignment Problem Answer- A type of linear programming problem that typically involves assigning people to task so as to minimize the total cost of performing these tasks Benefit Constraint Answer- A functional constraint with a greater than or equal to sign. The left-hand side is interpreted as the level of some benefit that is achieved by the activities under consideration, and the right-hand side is the minimum acceptable level for that benefit Cost- Benefit Trade-Off Problem Answer- A type of linear programming problem involving the trade-off between the total cost of the activities under consideration and the benefits to be achieved by these activities Its identifying feature is that each functional constraint in the linear programming model is a benefit constraint Fixed-requirement Constraint Answer- A functional constraint with an = sign. Fixed-requirement Problem Answer- A type of linear programming problem concerned with optimizing how to meet a number of fixed requirements. Each functional constraint in the model is a fixed-requirement constraint. Identifying Feature Answer- A feature of the model that identifies the category of linear programming problem it represents Integer Programming Problem Answer- A variation of a linear programming problem that has the additional restriction that some or all of the decision variables must be integer values Mixed Problem Answer- Any linear programming problem that includes at least 2 of the 3 types of functional constraints (resource, benefit, and fixed) Model Enrichment Answer- The process of using experience with a model to identify and add important details that will provide a better representation of the real problem Model Validation Answer- The process of checking and testing a model to develop a valid model Resource-Allocation Problem Answer- A type of linear programming problem concerned with allocating resources to activities. Each constraint in its model is a resource constraint Resource Constraint Answer- A functional constraint with a less than or equal to sign. Transportation Problem Answer- A type of linear programming problem that typically involves finding a shipping plan that minimizes the total cost of transporting a product from a number of plants to a number of customers