Deck 7: Using Binary Integer Programming to Deal With Yes-Or-No Decisions

Question 1

The constraint x1 ≤ x2 in a BIP problem means that alternative 2 cannot be selected unless alternative 1 is also selected.

Answer 1

False

Question 2

Binary integer programming problems are those where all the decision variables restricted to integer values are further restricted to be binary variables.

Answer 2

True

Question 3

A problems where all the variables are binary variables is called a pure BIP problem.

Answer 3

True

Question 4

The algorithms available for solving BIP problems are much more efficient than those for linear programming which is one of the advantages of formulating problems this way.

Question 5

In a site selection problem, a common goal is to identify the set of locations that provides adequate service at the minimum cost.

Question 6

If choosing one alternative from a group excludes choosing all of the others then these alternatives are called mutually exclusive.

Question 7

A linear programming formulation is not valid for a product mix problem when there are setup costs for initiating production.

Question 8

To model a situation where a setup cost will be charged if a certain product is produced, the best approach is to include and Excel "IF" function.

Question 9

BIP can be used in capital budgeting decisions to determine whether to invest a certain amount.

Question 10

A yes-or-no decision is a mutually exclusive decision if it can be yes only if a certain other yes-or-no decision is yes.

Question 11

Variables whose only possible values are 0 and 1 are called integer variables.

Question 12

Binary variables are variables whose only possible values are 0 or 1.

Question 13

The constraint x1 + x2 + x3­ ≤ 3 in a BIP represents mutually exclusive alternatives.

Question 14

An auxiliary binary variable is an additional binary variable that is introduced into a model to represent additional yes-or-no decisions.

Question 15

Binary variables are best suited to be the decision variables when dealing with yes-or-no decisions.

Question 16

The Excel sensitivity report can be used to perform sensitivity analysis for integer programming problems.

Question 17

A parameter analysis report can be used to perform sensitivity analysis for integer programming problems.

Question 18

It is possible to have a constraint in a BIP that excludes the possibility of choosing none of the alternatives available.

Question 19

A BIP problem considers one yes-or-no decision at a time with the objective of choosing the best alternative.

Question 20

BIP can be used to determine the timing of activities.

Question 21

A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 20x1 + 30x2 + 10x3 + 15x4
s.t. 5x1 + 7x2 + 12x3 + 11x4 ? 21 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X1 + x2 ? 1 {Constraint 3}
X1 + x3 ? 1 {Constraint 4}
X2 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if loaction } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints ensures that at least two of the potential sites will be selected?

A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5

Question 22

In a BIP problem, 1 corresponds to a yes decision and 0 to a no decision. If project A can be undertaken only if project B is also undertaken then the following constraint needs to be added to the formulation:

A) A + B ≤ 1.
B) A + B = 1.
C) A ≤ B.
D) B ≤ A.
E) None of the choices is correct.

Question 23

Deep Check
In a BIP problem, 1 corresponds to a yes decision and 0 to a no decision. If there are 4 projects under consideration (A, B, C, and

A) A + B + C + D ≤ 1.
B) A + B + C + D ≤ 2.
C) A + B + C + D ≤ 4.
D) A + B + C + D = 2.
D) and at most 2 can be chosen then the following constraint needs to be added to the formulation:

Question 24

Binary variables can have the following values:

A) 0 only.
B) 1 only.
C) any integer value less than 1.
D) 0 and 1 only.
E) any integer value greater than 1.

Question 25

A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 20x1 + 30x2 + 10x3 + 15x4
s.t. 5x1 + 7x2 + 12x3 + 11x4 ? 21 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X1 + x2 ? 1 {Constraint 3}
X1 + x3 ? 1 {Constraint 4}
X2 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints enforces a mutually exclusive relationship?

A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5

Question 26

If a firm wishes to choose at least 2 of 4 possible activities (A, B, C and
D), the constraint xA + xB + xC + xD ≥ 2 will enforce this relationship in a linear program.

Question 27

Which of the following techniques or tools can be used to perform sensitivity analysis for an integer programming problem?
I) The sensitivity report.
II) Trial-and-error.
III) A parameter analysis report.

A) I only
B) II only
C) III only
D) I and II only
E) All of the choices are correct.

Question 28

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 20x1 + 30x2 + 10x3 + 15x4
s.t. 5x1 + 7x2 + 12x3 + 11x4 ? 21 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X1 + x2 ? 1 {Constraint 3}
X1 + x3 ? 1 {Constraint 4}
X2 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. Which locations are selected?

A) Location 1
B) Location 2
C) Location 4
D) Locations 2 and 4
E) Locations 1 and 3

Question 29

In a BIP problem, 1 corresponds to a yes decision and 0 to a no decision. If there are two projects under consideration, A and B, and either both projects will be undertaken or no project will be undertaken, then the following constraint needs to be added to the formulation:

A) A ≤ B.
B) A + B ≤ 2.
C) A ≥ B.
D) A = B.
E) None of the choices is correct.

Question 30

When binary variables are used in a linear program, the Solver Sensitivity Report is not available.

Question 31

If a firm wishes to choose at most 2 of 4 possible activities (A, B, C and
D), the constraint xA + xB + xC + xD ≥ 2 will enforce this relationship in a linear program.

Question 32

A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 20x1 + 30x2 + 10x3 + 15x4
s.t. 5x1 + 7x2 + 12x3 + 11x4 ? 21 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X1 + x2 ? 1 {Constraint 3}
X1 + x3 ? 1 {Constraint 4}
X2 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints enforces a contingent relationship?

A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5

Question 33

A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 20x1 + 30x2 + 10x3 + 15x4
s.t. 5x1 + 7x2 + 12x3 + 11x4 ? 21 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X1 + x2 ? 1 {Constraint 3}
X1 + x3 ? 1 {Constraint 4}
X2 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which constraint ensures that the firm will not spend more capital than it has available (assume that each potential location has a different cost)?

A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5

Question 34

In a BIP problem with 2 mutually exclusive alternatives, x1 and x2, the following constraint needs to be added to the formulation if one alternative must be chosen:

A) x1 + x2 ≤ 1.
B) x1 + x2 = 1.
C) x1 - x2 ≤ 1.
D) x1- x2 = 1.
E) None of the choices is correct.

Question 35

Binary integer programming problems can answer which types of questions?

A) Should a project be undertaken?
B) Should an investment be made?
C) Should a plant be located at a particular location?
D) All of the choices are correct.
E) None of the choices is correct.

Question 36

In a BIP problem with 3 mutually exclusive alternatives, x1, x2, and x3, the following constraint needs to be added to the formulation:

A) x1 + x2 + x3 ≤ 1.
B) x1 + x2 + x3 = 1.
C) x1 - x2 - x3 ≤ 1.
D) x1 - x2 - x3 = 1.
E) None of the choices is correct.

Question 37

In a crew scheduling problem there is no need for a set covering constraint.

Question 38

In a BIP problem with 2 mutually exclusive alternatives, x1 and x2, the following constraint needs to be added to the formulation:

A) x1 + x2 ≤ 1.
B) x1 + x2 ≥ 1.
C) x1 - x2 ≤ 1.
D) x1 - x2 = 1.
E) None of the choices is correct.

Question 39

Binary integer programming can be used for:

A) capital budgeting.
B) site selection.
C) scheduling asset divestitures.
D) assignments of routes.
E) All of the choices are correct.

Question 40

If activities A and B are mutually exclusive, the constraint xA ≤ xB will enforce this relationship in a linear program.

Question 41

A new pizza restaurant is moving into town. The owner is considering a number of potential sites and would like to minimize the initial investment involved with purchasing locations. However, the owner is very concerned about delivery time and wants to make sure that every neighborhood in the city can have a pizza delivered in 15 minutes or less. The owner has divided the city into 10 neighborhoods (A-J) and is currently considering a total of 8 different locations. To help with the decision, the owner formulated the following linear programming model:
Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8
s.t. x1 + x2 + x5 + x7 ? 1 {Neighborhood A constraint}
X1 + x2 + x3 ? 1 {Neighborhood B constraint}
X5 + x6 + x8 ? 1 {Neighborhood C constraint}
X1 + x4 + x7 ? 1 {Neighborhood D constraint}
X2 + x3 + x7 ? 1 {Neighborhood E constraint}
X3 + x4 + x8 ? 1 {Neighborhood F constraint}
X2 + x5 + x7 ? 1 {Neighborhood G constraint}
X1 + x4 + x6 ? 1 {Neighborhood H constraint}
X1 + x6 + x8 ? 1 {Neighborhood I constraint}
X1 + x2 + x7 ? 1 {Neighborhood J constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the locations is NOT within 15 minutes of neighborhood A?

A) Location 1
B) Location 2
C) Location 5
D) Location 6
E) Location 7

Question 42

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
A firm has prepared the following binary integer program to evaluate a number of potential new capital projects. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 100x1 + 120x2 + 90x3 + 135x4
s.t. 150x1 + 200x2 + 225x3 + 175x4 ? 500 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X2 + x4 ? 1 {Constraint 3}
X2 + x3 ? 1 {Constraint 4}
X1 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if project } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. What is the expected net present value of the optimal solution?

A) 210
B) 220
C) 235
D) 310
E) 435

Question 43

A new pizza restaurant is moving into town. The owner is considering a number of potential sites and would like to minimize the initial investment involved with purchasing locations. However, the owner is very concerned about delivery time and wants to make sure that every neighborhood in the city can have a pizza delivered in 15 minutes or less. The owner has divided the city into 10 neighborhoods (A-J) and is currently considering a total of 8 different locations. To help with the decision, the owner formulated the following linear programming model:
Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8
s.t.x1 + x2 + x5 + x7 ? 1 {Neighborhood A constraint}
X1 + x2 + x3 ? 1 {Neighborhood B constraint}
X5 + x6 + x8 ? 1 {Neighborhood C constraint}
X1 + x4 + x7 ? 1 {Neighborhood D constraint}
X2 + x3 + x7 ? 1 {Neighborhood E constraint}
X3 + x4 + x8 ? 1 {Neighborhood F constraint}
X2 + x5 + x7 ? 1 {Neighborhood G constraint}
X1 + x4 + x6 ? 1 {Neighborhood H constraint}
X1 + x6 + x8 ? 1 {Neighborhood I constraint}
X1 + x2 + x7 ? 1 {Neighborhood J constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints is a set covering constraint?

A) Neighborhood A constraint
B) Neighborhood C constraint
C) Neighborhood F constraint
D) All of the choices are correct.
E) None of the choices is correct.

Question 44

A new pizza restaurant is moving into town. The owner is considering a number of potential sites and would like to minimize the initial investment involved with purchasing locations. However, the owner is very concerned about delivery time and wants to make sure that every neighborhood in the city can have a pizza delivered in 15 minutes or less. The owner has divided the city into 10 neighborhoods (A-J) and is currently considering a total of 8 different locations. To help with the decision, the owner formulated the following linear programming model:
Min 100x1 + 120x2 + 90x3 + 135x4 +75x 5 + 85x6 + 110x7 + 135x8
s.t. x1 + x2 + x5 + x7 ? 1 {Neighborhood A constraint}
X1 + x2 + x3 ? 1 {Neighborhood B constraint}
X5 + x6 + x8 ? 1 {Neighborhood C constraint}
X1 + x4 + x7 ? 1 {Neighborhood D constraint}
X2 + x3 + x7 ? 1 {Neighborhood E constraint}
X3 + x4 + x8 ? 1 {Neighborhood F constraint}
X2 + x5 + x7 ? 1 {Neighborhood G constraint}
X1 + x4 + x6 ? 1 {Neighborhood H constraint}
X1 + x6 + x8 ? 1 {Neighborhood I constraint}
X1 + x2 + x7 ? 1 {Neighborhood J constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the locations is within 15 minutes of neighborhoods C, H, and I?

A) Location 2
B) Location 4
C) Location 6
D) Location 8
E) None of these locations is within 15 minutes of neighborhoods C, H, and I.

Question 45

A firm has prepared the following binary integer program to evaluate a number of potential new capital projects. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 100x1 + 120x2 + 90x3 + 135x4
s.t. 150x1 + 200x2 + 225x3 + 175x4 ? 500 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X2 + x4 ? 1 {Constraint 3}
X2 + x3 ? 1 {Constraint 4}
X1 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if project } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints enforces a contingent relationship?

A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5

Question 46

A firm has prepared the following binary integer program to evaluate a number of potential new capital projects. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 100x1 + 120x2 + 90x3 + 135x4
s.t. 150x1 + 200x2 + 225x3 + 175x4 ? 500 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X2 + x4 ? 1 {Constraint 3}
X2 + x3 ? 1 {Constraint 4}
X1 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if project } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints enforces a mutually exclusive relationship?

A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5

Question 47

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
A new pizza restaurant is moving into town. The owner is considering a number of potential sites and would like to minimize the initial investment involved with purchasing locations. However, the owner is very concerned about delivery time and wants to make sure that every neighborhood in the city can have a pizza delivered in 15 minutes or less. The owner has divided the city into 10 neighborhoods (A-J) and is currently considering a total of 8 different locations. To help with the decision, the owner formulated the following linear programming model:
Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8
s.t. x1 + x2 + x5 + x7 ? 1 {Neighborhood A constraint}
X1 + x2 + x3 ? 1 {Neighborhood B constraint}
X5 + x6 + x8 ? 1 {Neighborhood C constraint}
X1 + x4 + x7 ? 1 {Neighborhood D constraint}
X2 + x3 + x7 ? 1 {Neighborhood E constraint}
X3 + x4 + x8 ? 1 {Neighborhood F constraint}
X2 + x5 + x7 ? 1 {Neighborhood G constraint}
X1 + x4 + x6 ? 1 {Neighborhood H constraint}
X1 + x6 + x8 ? 1 {Neighborhood I constraint}
X1 + x2 + x7 ? 1 {Neighborhood J constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. Which locations are selected?

A) Location 1
B) Location 3
C) Location 5
D) None of locations 1, 3, and 5 are selected.
E) All of locations 1, 3, and 5 are selected.

Question 48

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
The university administration would like to add some additional parking locations. To make everyone happy, they would like each building to be within a 5 minute walk of one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10). To help with the decision, the management science department formulated the following linear programming model:
Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6
s.t. x1 + x2 + x5 + x6 ? 1 {Residence Hall A constraint}
X1 + x2 + x3 ? 1 {Residence Hall B constraint}
X4 + x5 + x6 ? 1 {Science building constraint}
X1 + x4 + x5 ? 1 {Music building constraint}
X2 + x3 + x4 ? 1 {Math building constraint}
X3 + x4 + x5 ? 1 {Business building constraint}
X2 + x5 + x6 ? 1 {Auditorium constraint}
X1 + x4 + x6 ? 1 {Arena constraint}
X1 + x2 + x3 + x4 + x5 + x6 ? 4 {Total locations constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. What is the cost of the optimal set of locations?

A) 1,445
B) 1,535
C) 1,655
D) 1,715
E) 1,865

Question 49

A firm has prepared the following binary integer program to evaluate a number of potential new capital projects. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 100x1 + 120x2 + 90x3 + 135x4
s.t. 150x1 + 200x2 + 225x3 + 175x4 ? 500 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X2 + x4 ? 1 {Constraint 3}
X2 + x3 ? 1 {Constraint 4}
X1 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if project } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which constraint ensures that the firm will not spend more capital than it has available (assume that each potential project has a different cost)?

A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5

Question 50

The university administration would like to add some additional parking locations. To make everyone happy, they would like each building to be within a 5 minute walk of one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10). To help with the decision, the management science department formulated the following linear programming model:
Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6
S.t. x1 + x2 + x5 + x6 ? 1 {Residence Hall A constraint}
X1 + x2 + x3 ? 1 {Residence Hall B constraint}
X4 + x5 + x6 ? 1 {Science building constraint}
X1 + x4 + x5 ? 1 {Music building constraint}
X2 + x3 + x4 ? 1 {Math building constraint}
X3 + x4 + x5 ? 1 {Business building constraint}
X2 + x5 + x6 ? 1 {Auditorium constraint}
X1 + x4 + x6 ? 1 {Arena constraint}
X1 + x2 + x3 + x4 + x5 + x6 ? 4 {Total locations constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if project } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints is a set covering constraint?
I. Residence Hall A constraint.
II. Science building constraint.
III. Total locations constraint.

A) I only
B) II only
C) III only
D) All of these
E) I and II only

Question 51

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
The university administration would like to add some additional parking locations. To make everyone happy, they would like each building to be within a 5 minute walk of one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10). To help with the decision, the management science department formulated the following linear programming model:
Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6
s.t. x1 + x2 + x5 + x6 ? 1{Residence Hall A constraint}
X1 + x2 + x3 ? 1 {Residence Hall B constraint}
X4 + x5 + x6 ? 1 {Science building constraint}
X1 + x4 + x5 ? 1 {Music building constraint}
X2 + x3 + x4 ? 1 {Math building constraint}
X3 + x4 + x5 ? 1 {Business building constraint}
X2 + x5 + x6 ? 1 {Auditorium constraint}
X1 + x4 + x6 ? 1 {Arena constraint}
X1 + x2 + x3 + x4 + x5 + x6 ? 4 {Total locations constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. Which locations are selected?

A) Locations 1, 3, 4, and 5
B) Locations 1, 2, 4, and 5
C) Locations 1, 2, 3, and 5
D) Locations 2, 3, 4, and 5
E) Locations 1, 3, and 5

Question 52

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
A new pizza restaurant is moving into town. The owner is considering a number of potential sites and would like to minimize the initial investment involved with purchasing locations. However, the owner is very concerned about delivery time and wants to make sure that every neighborhood in the city can have a pizza delivered in 15 minutes or less. The owner has divided the city into 10 neighborhoods (A-J) and is currently considering a total of 8 different locations. To help with the decision, the owner formulated the following linear programming model:
Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8
s.t. x1 + x2 + x5 + x7 ? 1 {Neighborhood A constraint}
X1 + x2 + x3 ? 1 {Neighborhood B constraint}
X5 + x6 + x8 ? 1 {Neighborhood C constraint}
X1 + x4 + x7 ? 1 {Neighborhood D constraint}
X2 + x3 + x7 ? 1 {Neighborhood E constraint}
X3 + x4 + x8 ? 1 {Neighborhood F constraint}
X2 + x5 + x7 ? 1 {Neighborhood G constraint}
X1 + x4 + x6 ? 1 {Neighborhood H constraint}
X1 + x6 + x8 ? 1 {Neighborhood I constraint}
X1 + x2 + x7 ? 1 {Neighborhood J constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. What is the cost of the optimal set of locations?

A) 210
B) 220
C) 265
D) 310
E) 435

Question 53

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
A firm has prepared the following binary integer program to evaluate a number of potential new capital projects. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 100x1 + 120x2 + 90x3 + 135x4
s.t. 150x1 + 200x2 + 225x3 + 175x4 ? 500 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X2 + x4 ? 1 {Constraint 3}
X2 + x3 ? 1 {Constraint 4}
X1 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if project } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. Which projects are selected?

A) Project 1
B) Project 2
C) Project 4
D) Projects 2 and 3
E) Projects 1 and 3

Question 54

The university is scheduling cleaning crews for its ten buildings. Each crew has a different cost and is qualified to clean only certain buildings. There are eight possible crews to choose from in this case. The goal is to minimize costs while making sure that each building is cleaned. The management science department formulated the following linear programming model to help with the selection process.
Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8
s.t. x1 + x2 + x5 + x7 ? 1 {Building A constraint}
X1 + x2 + x3 ? 1 {Building B constraint}
X6 + x8 ? 1 {Building C constraint}
X1 + x4 + x7 ? 1 {Building D constraint}
X2 + x7 ? 1 {Building E constraint}
X3 + x8 ? 1 {Building F constraint}
X2 + x5 + x7 ? 1 {Building G constraint}
X1 + x4 + x6 ? 1 {Building H constraint}
X1 + x6 + x8 ? 1 {Building I constraint}
X1 + x2 + x7 ? 1 {Building J constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if crew } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints is a set covering constraint?

A) Building A constraint
B) Building C constraint
C) Building F constraint
D) All of the choices are correct.
E) None of the choices is correct.

Question 55

The university administration would like to add some additional parking locations. To make everyone happy, they would like each building to be within a 5 minute walk of one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10). To help with the decision, the management science department formulated the following linear programming model:
Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6
s.t. x1 + x2 + x5 + x6 ? 1 {Residence Hall A constraint}
X1 + x2 + x3 ? 1 {Residence Hall B constraint}
X4 + x5 + x6 ? 1 {Science building constraint}
X1 + x4 + x5 ? 1 {Music building constraint}
X2 + x3 + x4 ? 1 {Math building constraint}
X3 + x4 + x5 ? 1 {Business building constraint}
X2 + x5 + x6 ? 1 {Auditorium constraint}
X1 + x4 + x6 ? 1 {Arena constraint}
X1 + x2 + x3 + x4 + x5 + x6 ? 4 {Total locations constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the locations is NOT within 5 minutes of the Arena?

A) Location 1
B) Location 2
C) Location 4
D) Location 6
E) Location 7

Question 56

A firm has prepared the following binary integer program to evaluate a number of potential new capital projects. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 100x1 + 120x2 + 90x3 + 135x4
s.t. 150x1 + 200x2 + 225x3 + 175x4 ? 500 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X2 + x4 ? 1 {Constraint 3}
X2 + x3 ? 1 {Constraint 4}
X1 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if project } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints ensures that at least two of the potential projects will be selected?

A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5

Question 57

The university administration would like to add some additional parking locations. To make everyone happy, they would like each building to be within a 5 minute walk of one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10). To help with the decision, the management science department formulated the following linear programming model:
Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6
s.t. x1 + x2 + x5 + x6 ? 1 {Residence Hall A constraint}
X1 + x2 + x3 ? 1 {Residence Hall B constraint}
X4 + x5 + x6 ? 1 {Science building constraint}
X1 + x4 + x5 ? 1 {Music building constraint}
X2 + x3 + x4 ? 1 {Math building constraint}
X3 + x4 + x5 ? 1 {Business building constraint}
X2 + x5 + x6 ? 1 {Auditorium constraint}
X1 + x4 + x6 ? 1 {Arena constraint}
X1 + x2 + x3 + x4 + x5 + x6 ? 4 {Total locations constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the locations is the most expensive?

A) Location 2
B) Location 3
C) Location 4
D) Location 5
E) Location 6

Question 58

A new pizza restaurant is moving into town. The owner is considering a number of potential sites and would like to minimize the initial investment involved with purchasing locations. However, the owner is very concerned about delivery time and wants to make sure that every neighborhood in the city can have a pizza delivered in 15 minutes or less. The owner has divided the city into 10 neighborhoods (A-J) and is currently considering a total of 8 different locations. To help with the decision, the owner formulated the following linear programming model:
Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8
s.t. x1 + x2 + x5 + x7 ? 1 {Neighborhood A constraint}
X1 + x2 + x3 ? 1 {Neighborhood B constraint}
X5 + x6 + x8 ? 1 {Neighborhood C constraint}
X1 + x4 + x7 ? 1 {Neighborhood D constraint}
X2 + x3 + x7 ? 1 {Neighborhood E constraint}
X3 + x4 + x8 ? 1 {Neighborhood F constraint}
X2 + x5 + x7 ? 1 {Neighborhood G constraint}
X1 + x4 + x6 ? 1 {Neighborhood H constraint}
X1 + x6 + x8 ? 1 {Neighborhood I constraint}
X1 + x2 + x7 ? 1 {Neighborhood J constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the locations is the most expensive?

A) Location 1.
B) Location 2.
C) Location 3.
D) Location 4.
E) Location 5.

Question 59

The university administration would like to add some additional parking locations. To make everyone happy, they would like each building to be within a 5 minute walk of one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10). To help with the decision, the management science department formulated the following linear programming model:
Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6
s.t. x1 + x2 + x5 + x6 ? 1 {Residence Hall A constraint}
X1 + x2 + x3 ? 1 {Residence Hall B constraint}
X4 + x5 + x6 ? 1 {Science building constraint}
X1 + x4 + x5 ? 1 {Music building constraint}
X2 + x3 + x4 ? 1 {Math building constraint}
X3 + x4 + x5 ? 1 {Business building constraint}
X2 + x5 + x6 ? 1 {Auditorium constraint}
X1 + x4 + x6 ? 1 {Arena constraint}
X1 + x2 + x3 + x4 + x5 + x6 ? 4 {Total locations constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the locations is within 5 minutes of the science, music, math, and business buildings?

A) Location 2
B) Location 4
C) Location 5
D) Location 6
E) None of these locations is within 5 minutes of the listed buildings.

Question 60

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
A firm has prepared the following binary integer program to evaluate a number of potential locations for new warehouses. The firm's goal is to maximize the net present value of their decision while not spending more than their currently available capital.
Max 20x1 + 30x2 + 10x3 + 15x4
s.t. 5x1 + 7x2 + 12x3 + 11x4 ? 21 {Constraint 1}
X1 + x2 + x3 + x4 ? 2 {Constraint 2}
X1 + x2 ? 1 {Constraint 3}
X1 + x3 ? 1 {Constraint 4}
X2 = x4 {Constraint 5} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if location } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. What is the expected net present value of the optimal solution?

A) 20
B) 30
C) 35
D) 40
E) 45

Question 61

The university is scheduling cleaning crews for its ten buildings. Each crew has a different cost and is qualified to clean only certain buildings. There are eight possible crews to choose from in this case. The goal is to minimize costs while making sure that each building is cleaned. The management science department formulated the following linear programming model to help with the selection process.
Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8
s.t. x1 + x2 + x5 + x7 ? 1 {Building A constraint}
X1 + x2 + x3 ? 1 {Building B constraint}
X6 + x8 ? 1 {Building C constraint}
X1 + x4 + x7 ? 1 {Building D constraint}
X2 + x7 ? 1 {Building E constraint}
X3 + x8 ? 1 {Building F constraint}
X2 + x5 + x7 ? 1 {Building G constraint}
X1 + x4 + x6 ? 1 {Building H constraint}
X1 + x6 + x8 ? 1 {Building I constraint}
X1 + x2 + x7 ? 1 {Building J constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if crew } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the crews can be scheduled to clean buildings B and F?

A) Crew 3
B) Crew 4
C) Crew 6
D) Crew 7
E) Crew 8

Question 62

A manufacturer has the capability to produce both chairs and tables. Both products use the same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making process, an analyst has formulated the following linear programming model:
Max 20x1 + 65x2 - 100y1 - 200y2
s.t. 5x1 + 10x2 ? 100 {Constraint 1}
20x1 + 50x2 ? 250 {Constraint 2}
1x1 + 1.5x2 ? 10 {Constraint 3}
My1 ? x1 {Constraint 4}
My2 ? x2 {Constraint 5} $$y _ { i } = \left\{ \begin{array} { l } 1 , \text { if product } j \text { is produced } \\0 , \text { otherwise }\end{array} \right.$$
Which of the following would be a reasonable value for the variable "M"?

A) 100
B) 10
C) 1
D) 0.1
E) 0.01

Question 63

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
To enhance the safety of your facility, you decide to add more fire extinguishers. Your goal is to have each area within 50 feet of a fire extinguisher, but to minimize the total number of fire extinguishers you need to purchase. You have divided the facility into 7 zones and have identified 8 possible locations for fire extinguishers. The following table shows the distance (in feet) from each zone to each potential location.

How many fire extinguishers should you purchase?

A) 2
B) 3
C) 4
D) 5
E) 6

Question 64

A manufacturer produces both widgets and gadgets. Widgets generate a profit of $50 each and gadgets have a profit margin of $35 each. To produce each item, a setup cost is incurred. This setup cost of $500 for widgets and $400 for gadgets. Widgets consume 4 units of raw material A and 5 units of raw material B. Gadgets consume 6 units of raw material A and 2 units of raw material B. Each day, the manufacturer has 500 units of each raw material available.
Set up the problem in Excel and find the optimal solution. What is the maximum profit possible?

A) $3,500
B) $4,500
C) $5,500
D) $6,500
E) $7,500

Question 65

The university is scheduling cleaning crews for its ten buildings. Each crew has a different cost and is qualified to clean only certain buildings. There are eight possible crews to choose from in this case. The goal is to minimize costs while making sure that each building is cleaned. The management science department formulated the following linear programming model to help with the selection process.
Min200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8
s.t. x1 + x2 + x5 + x7 ? 1 {Building A constraint}
X1 + x2 + x3 ? 1 {Building B constraint}
X6 + x8 ? 1 {Building C constraint}
X1 + x4 + x7 ? 1 {Building D constraint}
X2 + x7 ? 1 {Building E constraint}
X3 + x8 ? 1 {Building F constraint}
X2 + x5 + x7 ? 1 {Building G constraint}
X1 + x4 + x6 ? 1 {Building H constraint}
X1 + x6 + x8 ? 1 {Building I constraint}
X1 + x2 + x7 ? 1 {Building J constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if crew } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the crews can be scheduled to clean building A?

A) Crew 1
B) Crew 2
C) Crew 5
D) Crew 6
E) Crew 7

Question 66

The university is scheduling cleaning crews for its ten buildings. Each crew has a different cost and is qualified to clean only certain buildings. There are eight possible crews to choose from in this case. The goal is to minimize costs while making sure that each building is cleaned. The management science department formulated the following linear programming model to help with the selection process.
Min 200x1 + 250x2 + 225x3 + 190x4 +215x 5 + 245x6 + 235x7 + 220x8
s.t. x1 + x2 + x5 + x7 ? 1 {Building A constraint}
X1 + x2 + x3 ? 1 {Building B constraint}
X6 + x8 ? 1 {Building C constraint}
X1 + x4 + x7 ? 1 {Building D constraint}
X2 + x7 ? 1 {Building E constraint}
X3 + x8 ? 1 {Building F constraint}
X2 + x5 + x7 ? 1 {Building G constraint}
X1 + x4 + x6 ? 1 {Building H constraint}
X1 + x6 + x8 ? 1 {Building I constraint}
X1 + x2 + x7 ? 1 {Building J constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if crew } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Which of the crews is the least expensive?

A) Crew 1
B) Crew 2
C) Crew 3
D) Crew 4
E) Crew 5

Question 67

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
The university is scheduling cleaning crews for its ten buildings. Each crew has a different cost and is qualified to clean only certain buildings. There are eight possible crews to choose from in this case. The goal is to minimize costs while making sure that each building is cleaned. The management science department formulated the following linear programming model to help with the selection process.
Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8
s.t. x1 + x2 + x5 + x7 ? 1 {Building A constraint}
X1 + x2 + x3 ? 1 {Building B constraint}
X6 + x8 ? 1 {Building C constraint}
X1 + x4 + x7 ? 1 {Building D constraint}
X2 + x7 ? 1 {Building E constraint}
X3 + x8 ? 1 {Building F constraint}
X2 + x5 + x7 ? 1 {Building G constraint}
X1 + x4 + x6 ? 1 {Building H constraint}
X1 + x6 + x8 ? 1 {Building I constraint}
X1 + x2 + x7 ? 1 {Building J constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if crew } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. Which crews are selected?

A) Crews 1, 2, and 3
B) Crews 1, 5, and 6
C) Crews 1, 7, and 8
D) Crews 2, 3, and 5
E) Crews 3, 4, and 5.

Question 68

A manufacturer has the capability to produce both chairs and tables. Both products use the same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making process, an analyst has formulated the following linear programming model:
Max 20x1 + 65x2 - 100y1 - 200y2
s.t. 5x1 + 10x2 ? 100 {Constraint 1}
20x1 + 50x2 ? 250 {Constraint 2}
1x1 + 1.5x2 ? 10 {Constraint 3}
My1 ? x1 {Constraint 4}
My2 ? x2 {Constraint 5} $$y _ { i } = \left\{ \begin{array} { l } 1 , \text { if product } j \text { is produced } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints limit the amount of raw materials that can be consumed?

A) Constraint 1
B) Constraint 4
C) Constraint 5
D) Constraint 1 and 4 only
E) None of these

Question 69

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
A bakery produces both pies and cakes. Both products use the same materials (flour, sugar and eggs) and both have a setup cost ($100 for cakes, $200 for pies). The baker earns a profit of $10 per cake and $12 per pie and can sell as many of each as it can produce. The daily supply of flour, sugar and eggs is limited. To manage the decision-making process, an analyst has formulated the following linear programming model (assume that it is possible to produce fractional pies and cakes for this example):
Max 10x1 + 12x2 - 100y1 - 200y2
s.t. 5x1 + 10x2 ? 1000 {Constraint 1}
2x1 + 5x2 ? 2500 {Constraint 2}
2x1 + 1x2 ? 300 {Constraint 3}
My1 ? x1 {Constraint 4}
My2 ? x2 {Constraint 5} $$y _ { i } = \left\{ \begin{array} { l } 1 , \text { if product } j \text { is produced } \\0 , \text { ot herwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. What is the maximum profit possible?

A) $1,233.33
B) $1,333.33
C) $1,433.33
D) $1,533.33
E) $1,633.33

Question 70

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
Your employer is trying to select from a list of possible capital projects. The projects, along with their cost and benefits, are listed below. The capital budget available is $1 million. In addition to spending constraints, your employer would like to select at least two projects. If project 1 is chosen then project 2 cannot be selected. Formulate the problem as a linear program and determine the optimal solution.
$$\begin{array} { c c c c } \text { Project } & \text { Cost } & \text { Net Presert Value } & \text { Notes } \\1 & \$ 250,000 & \$ 500,000 & \text { Carrnot be selected if } 2 \text { is selected } \\2 & \$ 500,000 & \$ 750,000 & \text { Carrot be selected if } 1 \text { is selected } \\3 & \$ 290,000 & \$ 333,000 & \\4 & \$ 650,000 & \$ 400,000 & \\5 & \$ 750,000 & \$ 600,000 &\end{array}$$

A) Project 1 and project 2
B) Project 1 and project 3
C) Project 1 and project 5
D) Project 2 and project 3
E) Project 3 and project 5

Question 71

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
A manufacturer has the capability to produce both chairs and tables. Both products use the same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making process, an analyst has formulated the following linear programming model:
Max 20x1 + 65x2 - 100y1 - 200y2
s.t. 5x1 + 10x2 ? 100 {Constraint 1}
20x1 + 50x2 ? 250 {Constraint 2}
1x1 + 1.5x2 ? 10 {Constraint 3}
My1 ? x1 {Constraint 4}
My2 ? x2 {Constraint 5} $$y _ { i } = \left\{ \begin{array} { l } 1 , \text { if product } j \text { is produced } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. What is the optimal production schedule?

A) 10 chairs, 0 tables
B) 0 chairs, 5 tables
C) 10 chairs, 5 tables
D) 5 chairs, 10 tables
E) 15 chairs, 5 tables

Question 72

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
A bakery produces both pies and cakes. Both products use the same materials (flour, sugar and eggs) and both have a setup cost ($100 for cakes, $200 for pies). The baker earns a profit of $10 per cake and $12 per pie and can sell as many of each as it can produce. The daily supply of flour, sugar and eggs is limited. To manage the decision-making process, an analyst has formulated the following linear programming model (assume that it is possible to produce fractional pies and cakes for this example):
Max 10x1 + 12x2 - 100y1 - 200y2
s.t. 5x1 + 10x2 ? 1000 {Constraint 1}
2x1 + 5x2 ? 2500 {Constraint 2}
2x1 + 1x2 ? 300 {Constraint 3}
My1 ? x1 {Constraint 4}
My2 ? x2 {Constraint 5} $$y _ { i } = \left\{ \begin{array} { l } 1 , \text { if product } j \text { is produced } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. What is the optimal production schedule?

A) 133? cakes, 33? pies
B) 133? cakes, 0 pies
C) 0 cakes, 33? pies
D) 33? cakes, 133? pies
E) 133? cakes, 133? pies

Question 73

A bakery produces both pies and cakes. Both products use the same materials (flour, sugar and eggs) and both have a setup cost ($100 for cakes, $200 for pies). The baker earns a profit of $10 per cake and $12 per pie and can sell as many of each as it can produce. The daily supply of flour, sugar and eggs is limited. To manage the decision-making process, an analyst has formulated the following linear programming model (assume that it is possible to produce fractional pies and cakes for this example):
Max 10x1 + 12x2 - 100y1 - 200y2
s.t. 5x1 + 10x2 ? 1000 {Constraint 1}
2x1 + 5x2 ? 2500 {Constraint 2}
2x1 + 1x2 ? 300 {Constraint 3}
My1 ? x1 {Constraint 4}
My2 ? x2 {Constraint 5} $$y _ { i } = \left\{ \begin{array} { l } 1 , \text { if product } j \text { is produced } \\0 , \text { ot herwise }\end{array} \right.$$
Which of the following would be a reasonable value for the variable "M"?

A) 0.1
B) 1
C) 10
D) 100
E) 1,000

Question 74

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
A manufacturer has the capability to produce both chairs and tables. Both products use the same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making process, an analyst has formulated the following linear programming model:
Max 20x1 + 65x2 - 100y1 - 200y2
s.t. 5x1 + 10x2 ? 100 {Constraint 1}
20x1 + 50x2 ? 250 {Constraint 2}
1x1 + 1.5x2 ? 10 {Constraint 3}
My1 ? x1 {Constraint 4}
My2 ? x2 {Constraint 5} $$y _ { i } = \left\{ \begin{array} { l } 1 , \text { if product } j \text { is produced } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. What is the maximum profit possible?

A) $25
B) $50
C) $75
D) $100
E) $125

Question 75

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.
The university is scheduling cleaning crews for its ten buildings. Each crew has a different cost and is qualified to clean only certain buildings. There are eight possible crews to choose from in this case. The goal is to minimize costs while making sure that each building is cleaned. The management science department formulated the following linear programming model to help with the selection process.
Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8
s.t. x1 + x2 + x5 + x7 ? 1 {Building A constraint}
X1 + x2 + x3 ? 1 {Building B constraint}
X6 + x8 ? 1 {Building C constraint}
X1 + x4 + x7 ? 1 {Building D constraint}
X2 + x7 ? 1 {Building E constraint}
X3 + x8 ? 1 {Building F constraint}
X2 + x5 + x7 ? 1 {Building G constraint}
X1 + x4 + x6 ? 1 {Building H constraint}
X1 + x6 + x8 ? 1{Building I constraint}
X1 + x2 + x7 ? 1 {Building J constraint} $$x _ { j } = \left\{ \begin{array} { l } 1 , \text { if crew } j \text { is selected } \\0 , \text { otherwise }\end{array} \right.$$
Set up the problem in Excel and find the optimal solution. What is the cost of the optimal set of locations?

A) 255
B) 355
C) 455
D) 555
E) 655

Question 76

A bakery produces both pies and cakes. Both products use the same materials (flour, sugar and eggs) and both have a setup cost ($100 for cakes, $200 for pies). The baker earns a profit of $10 per cake and $12 per pie and can sell as many of each as it can produce. The daily supply of flour, sugar and eggs is limited. To manage the decision-making process, an analyst has formulated the following linear programming model (assume that it is possible to produce fractional pies and cakes for this example):
Max 10x1 + 12x2 - 100y1 - 200y2
s.t. 5x1 + 10x2 ? 1000 {Constraint 1}
2x1 + 5x2 ? 2500 {Constraint 2}
2x1 + 1x2 ? 300 {Constraint 3}
My1 ? x1 {Constraint 4}
My2 ? x2 {Constraint 5} $$y _ { i } = \left\{ \begin{array} { l } 1 , \text { if product } j \text { is produced } \\0 , \text { otherwise }\end{array} \right.$$
Which of the constraints limit the amount of raw materials that can be consumed?

A) Constraint 3
B) Constraint 4
C) Constraint 5
D) Constraint 3 and 4
E) None of these.