Quiz 2

MGMT 430 Quiz 2 Name:_____________________________

1) The purpose of a linear programming study is to help guide management's final decision by

providing insights.

A. True

B. False

2) Shadow price analysis is widely used to help management find the best trade-off between

costs and benefits for a problem.

A. True

B. False

3) In linear programming, what-if analysis is associated with determining the effect of changing:

I. objective function coefficients.

II. right-hand side values of constraints.

III. decision variable values.

A) objective function coefficients and right-hand side values of constraints.

B) right-hand side values of constraints and decision variable values.

C) objective function coefficients, right-hand side values of constraints, and decision variable

values.

D) objective function coefficients and decision variable values.

E) None of the choices is correct.

4) Which of the following are benefits of what-if analysis?

A) It pinpoints the sensitive parameters of the model.

B) It gives the new optimal solution if conditions change.

C) It tells management what policy decisions to make.

D) All of the choices are correct.

E) None of the choices is correct.

5) When even a small change in the value of a coefficient in the objective function can change

the optimal solution, the coefficient is called:

A) optimal.

B) sensitive.

C) out of the range.

D) within the range.

E) None of the choices is correct.

6) Minimum cost flow problems are the special type of linear programming problem referred to

as distribution-network problems.

A. True

B. False

MGMT 430 Quiz 2 Name:_____________________________

7) Network representations can be used for the following problems:

A) project planning.

B) facilities location.

C) financial planning.

D) resource management.

E) All of the choices are correct.

8) Which of the following can be used to optimally solve minimum cost flow problems?

I. The simplex method.

II. The network simplex method.

III. A greedy algorithm.

A) I only.

B) II only.

C) III only.

D) I and II only.

E) All of these.

9) For a minimum cost flow problem to have a feasible solution, which of the following must be

true?

A) There is the same number of supply nodes and demand nodes.

B) There is only one supply node and one demand node.

C) There is an equal amount of supply and demand.

D) The supply and demand must be integers.

E) The transshipment nodes must be able to absorb flow.

10) Which of the following could be the subject of a maximum flow problem?

A) Products

B) Oil

C) Vehicles

D) All of the choices are correct.

E) None of the choices is correct.