4/15/25, 11:07
AM
BUAL 5380 FINAL – UPDATED QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Leave the first rating
Save
1. The data on the current Understand the basic elements of an aggregate planning model.
number of workers, hours per worker
per month,
regular wage, and overtime rates should
be well known.
2. The costs for hiring and firing
a worker are not trivial.
3.The unit production cost is a
combination of two inputs: The raw
material cost and the labor cost.
defined as a model where we determine
workforce levels and production
schedules for a multiperiod time horizon.
An exampel of this model would be that Understand what a static scheduling model is.
we assume a company would face the
same situation each week. However, in
reality, demands change over time.
Rounding a solution can lead to values Effects of rounding a solution in a linear programming model on the feasibility and
that do not satisfy all the constraints of optimality of the solution.
the LP model. For instance, if a variable
is rounded up, it might exceed a
resource
limit, violating a constraint.
Even if the rounded solution remains
feasible, it may no longer be optimal.
The objective function value (such as
profit or cost) could be suboptimal
compared to the original LP solution.
A1x1+a2x2 + anxn where n is the number of Understand how to algebraically set up a constraint in a linear programming
decision variables model.
where n is the number of decision
variables, the a’s are constants, and the x’s
are decision variables
Properties:
Proportionality: if the level of any activity
is multiplied by constant factor, the
contribution of this activity to the
objective is multiplied by the same
factor. Additivity: Implies that the sum
of the contributions from various
activities to a particular constraint
equals the total contribution to that
constraint.
Divisibility: Means that both integer and
noninteger levels of the activity are
allowed.
1/
6
, 4/15/25, 11:07
AM
The shadow price indicates the change in Shawdow price
the optimal value of the objective
when the right side of some constraint
changes by one unit.
- If a resource constraint is binding in the
optimal solution, the company is willing
to pay up to some amount, the
shadow price, to obtain more of the
resource
- This number means the change in
the objective function if the
constraint is relaxed by 1 unit. So, if
the capacity
increases by 1 unit, the cost will reduce by
$119.
Decision Variables Characteristics (elements) of optimization problems.
Objective function
Constraints
Various imputs blended to produce Understand what a blending model is.
desired outputs. A company using this
model would run the model periodically
and set production on the basis of current
inventory of inputs and the current
forecast of demand and prices.
These can be used to determine Elements of a typical transportation model and the general logistics problem
the minimum-cost shipping method (network representation).
for satisfying customer demands.
Typically require three sets of numbers:
Capacities
Demands
unit shipping costs
Optimization models in which some or all Define what is integer programming.
of the variables must be integers.
- to help managers gain insight The goal of decision analysis
and understanding, but they can't
make decisions
Alternatives- different courses of action Characteristics of decision problems
intdended to solve a problem
Criteria- factors that are important to
the decision maker and influenced by
the
alternatives.
States of Nature- Future events not under
the decision makers control
decision rule category that does NOT non-probabilistic
assume that probabilities of occurrence
can be assigned to the states of nature
in a decision problem
decision rule category that assumes that probablistic
probabilities of occurrence can be
assigned to the states of nature in a
decision problem
choose the alternative with the best Maximax
possible payoff, the optimistic view
2/
6
AM
BUAL 5380 FINAL – UPDATED QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Leave the first rating
Save
1. The data on the current Understand the basic elements of an aggregate planning model.
number of workers, hours per worker
per month,
regular wage, and overtime rates should
be well known.
2. The costs for hiring and firing
a worker are not trivial.
3.The unit production cost is a
combination of two inputs: The raw
material cost and the labor cost.
defined as a model where we determine
workforce levels and production
schedules for a multiperiod time horizon.
An exampel of this model would be that Understand what a static scheduling model is.
we assume a company would face the
same situation each week. However, in
reality, demands change over time.
Rounding a solution can lead to values Effects of rounding a solution in a linear programming model on the feasibility and
that do not satisfy all the constraints of optimality of the solution.
the LP model. For instance, if a variable
is rounded up, it might exceed a
resource
limit, violating a constraint.
Even if the rounded solution remains
feasible, it may no longer be optimal.
The objective function value (such as
profit or cost) could be suboptimal
compared to the original LP solution.
A1x1+a2x2 + anxn where n is the number of Understand how to algebraically set up a constraint in a linear programming
decision variables model.
where n is the number of decision
variables, the a’s are constants, and the x’s
are decision variables
Properties:
Proportionality: if the level of any activity
is multiplied by constant factor, the
contribution of this activity to the
objective is multiplied by the same
factor. Additivity: Implies that the sum
of the contributions from various
activities to a particular constraint
equals the total contribution to that
constraint.
Divisibility: Means that both integer and
noninteger levels of the activity are
allowed.
1/
6
, 4/15/25, 11:07
AM
The shadow price indicates the change in Shawdow price
the optimal value of the objective
when the right side of some constraint
changes by one unit.
- If a resource constraint is binding in the
optimal solution, the company is willing
to pay up to some amount, the
shadow price, to obtain more of the
resource
- This number means the change in
the objective function if the
constraint is relaxed by 1 unit. So, if
the capacity
increases by 1 unit, the cost will reduce by
$119.
Decision Variables Characteristics (elements) of optimization problems.
Objective function
Constraints
Various imputs blended to produce Understand what a blending model is.
desired outputs. A company using this
model would run the model periodically
and set production on the basis of current
inventory of inputs and the current
forecast of demand and prices.
These can be used to determine Elements of a typical transportation model and the general logistics problem
the minimum-cost shipping method (network representation).
for satisfying customer demands.
Typically require three sets of numbers:
Capacities
Demands
unit shipping costs
Optimization models in which some or all Define what is integer programming.
of the variables must be integers.
- to help managers gain insight The goal of decision analysis
and understanding, but they can't
make decisions
Alternatives- different courses of action Characteristics of decision problems
intdended to solve a problem
Criteria- factors that are important to
the decision maker and influenced by
the
alternatives.
States of Nature- Future events not under
the decision makers control
decision rule category that does NOT non-probabilistic
assume that probabilities of occurrence
can be assigned to the states of nature
in a decision problem
decision rule category that assumes that probablistic
probabilities of occurrence can be
assigned to the states of nature in a
decision problem
choose the alternative with the best Maximax
possible payoff, the optimistic view
2/
6
