31 Questions
What is the primary objective of a business firm in linear programming?
To maximize profit
What is the term for the mathematical symbols that represent levels of activity by the firm in a linear programming model?
Decision variables
What is the purpose of linear programming in management science?
To solve problems with multiple constraints
What is the primary limitation of the graphical method in linear programming?
It can only be used for models with two decision variables.
What is the term for the restrictions placed on a manager by the operating environment?
Limited resources
What type of problem has no feasible solution area, with every possible solution point violating one or more constraints?
Infeasible problem
What is the goal of a manager in a linear programming model?
To maximize profit
What is the result of solving simultaneous equations at each corner point?
Finding the solution values at each point
What are the components of a linear programming model?
Decision variables, objective function, and model constraints
What is a characteristic of a linear programming problem?
It requires a choice between alternative courses of action
What is the term for the process of seeking an objective that is subject to restrictions?
Linear programming
What is the benefit of having multiple optimal solutions?
It provides greater flexibility to the decision maker
What is the graphical solution of a linear programming model used for?
To find the optimal solution
What is the objective of a linear programming problem?
To maximize the objective function
What type of problem does not have a maximum value for the objective function?
Unbounded problem
What is the purpose of substituting solution values into the objective function?
To find the maximum Z value
What is the primary purpose of the objective function in linear programming?
To describe the objective of the firm in terms of the decision variables
What do the model constraints represent in linear programming?
The restrictions placed on the firm by the operating environment
What is a parameter in linear programming?
An actual numeric value in the objective function and the constraints
What are the two primary resources used by the Beaver Creek Pottery Company?
Special pottery clay and skilled labor
What is the goal of the Beaver Creek Pottery Company in this problem?
To maximize profit
What is the total amount of labor available each day for production at the Beaver Creek Pottery Company?
40 hours
What is the purpose of formulating the problem as a linear programming model?
To determine the optimal product mix
What is the objective of the linear programming model?
To maximize total profit
What is the condition for a solution to be feasible?
The solution must satisfy all constraints
What is the characteristic of the objective function line in the given problem?
Profit increases as the objective function line moves away from the origin
What is the purpose of solving the simultaneous equations in the given problem?
To determine the values of x1 and x2
What is the name given to the points A, B, and C in the feasible solution area?
Extreme points
What is the mathematical property of linear programming models?
The optimal solution will always occur at an extreme point
What is the limitation of using a graph to determine the optimal solution?
The graph may not be accurate
What is the purpose of using the graphical solution approach?
To determine the optimal solution point
Study Notes
Management Science
- Management Science is a technique used to make decisions in a business, focusing on achieving objectives subject to restrictions.
- It is frequently used to solve problems that involve maximizing or minimizing an objective function, subject to constraints.
Applications of Management Science
- Accounting: used to make decisions on resource allocation, budgeting, and financial planning.
- Production: used to optimize production processes, manage inventory, and schedule production.
Linear Programming
- A technique used to solve optimization problems with a linear objective function, subject to linear constraints.
- Consists of decision variables, an objective function, and model constraints.
- Decision variables represent levels of activity by the firm.
- The objective function is a linear mathematical relationship that describes the objective of the firm in terms of the decision variables.
- Model constraints are linear relationships of the decision variables, representing restrictions placed on the firm by the operating environment.
Components of a Linear Programming Model
- Decision variables
- Objective function
- Model constraints
- Decision variables and parameters
- Restrictions on the firm, such as limited resources or guidelines
Graphical Solution of Linear Programming Models
- A method used to find the optimal solution of a linear programming model with two decision variables.
- The solution is found by graphing the constraints and the objective function, and finding the point that maximizes or minimizes the objective function.
Characteristics of Linear Programming Models
- A linear programming problem requires a choice between alternative courses of action or a decision.
- The problem encompasses an objective that the decision maker wants to achieve.
- The model consists of decision variables, an objective function, and model constraints.
Special Types of Linear Programming Models
- Multiple optimal solutions: provide greater flexibility to the decision maker.
- Infeasible problems: have no feasible solution area; every possible solution point violates one or more constraints.
- Unbounded problems: the objective function can increase indefinitely without reaching a maximum value.
Assess your understanding of Management Science and its applications in various areas of a firm, including accounting and production. Learn about the Management Science Process, techniques, and its relevance in decision support systems.
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