DSCI 3870.

002: Management Science

Exam # 1
09/23/2014
Time allotted: 75 minutes
Name:
SID#:
Please read this carefully
The questions, which you attempt today, consist of True/False and multiple-choice questions worth 200
points total. Some of these questions are based on descriptive cases. There are a total of 28 questions.
Please answer all the questions on the scantron sheet provided. After you are done, please turn in the
scantron and this question booklet.
Please note that you have to enter your name and Student ID Number (SID#) in the above area and on the
scantron. Failure to do so will result in a grade of zero .
This is an open book/open notes exam. You are also allowed to use a programmable calculator and/or laptop
computer. Be sure to allocate you time wisely between the multiple choice and T/F questions.

Acronyms such as LP, LHS (left-hand side), RHS (right-hand side) etc. may have been used. If you are
unsure about an acronym, please ask me/the invigilator immediately.

All the best!!!

For Questions 1-3, consider the following classifications:

Feasible Region
I Non-existent
II Single point
III Finite Line Segment
IV Polygon
V - Unbounded

Optimal Solution
A - Unbounded
B - Unique
C Alternate Optima
D No feasible solution

1. Suppose an LP with 2 regular constraints (other than the non-negativity constraints) has II as
its feasible region. If one of these two constraints is removed, which of the following CANNOT be
the type of the new optimal solution?
a.
A
b.
B
c.
C
d.
D*
e.
A or D.
2. A minimization LP has C as its optimal solution. Which of the following changes would
DEFINITELY change the type of optimal solution (that is, make it A, B or D)?
a.
The RHS of a constraint is changed.
b.
A new constraint is added.
c.
The objective function coefficient of only one variable is changed.*
d.
The feasible region type is changed.
e.
None of the above.
3. Which type of feasible regions result in exactly one type of optimal solution?
a. I and II*
b. I only
c. II only
d. V only
e. I, II and V
4. The constraint 6x1 - 5x2 < 30 excludes the point (8, 4).
a. True

b. False *

5. If a Linear Program has a line segment as its feasible region, this means that the number of
solutions that satisfies all constraints is
a.
3
b.
2
c.
1
d.
0
e.
An infinite number.*
6. If an LP has an unbounded optimal solution, which of the actions below might result in a unique
optimal solution?
a. Doubling the objective function coefficients of both variables.
b. Adding a new constraint *
c. Removing a constraint
d. a and b may both work.

7. Which of the following would NOT be an acceptable objective function for a linear
programming model?
a. Min -3X1 + 5X2
b. Max. 7 X1 + X2/5
c. Min. X1 * X2*
d. Min. X1 - X2
e. b and c.
The next three questions are based on the following case:
The relationship d = 1005p describes what happens to demand(d) as price (p) varies. Here, price
can vary between $8 and $18. The cost is $6 per unit.
8.

How many units can be sold at the $10 price and at the $15 price respectively?
a 25, 50
b 10, 15
c 40, 10
d 80, 45
e None of the above.*

9.

Consider prices of $9, $12, and $15. Among these, which price alternative(s)
will maximize total revenue?
a $9*
b $12
c $15
d $9 and $12 both
e $12 and $15 both

10.

The expression for total profit is given as

a 70 p5p2 - 600
b 130 p + 5p2 - 600
c 130 d5d2 - 600
d 130 p5p2 600*
e None of the above.

11. Consider a linear program (LP):

Max. 2X + Y
st.
aX + bY = c
X, Y > 0
where a, b and c are all positive constants.
a. the feasible region for this LP does not exist.
b. the feasible region for this LP is a finite line segment.*
c. the feasible region for this LP is unbounded.
d. the feasible region for this LP is a single point.
e. We need more information to find the feasible region.

12. A constraint can have both positive surplus and positive slack variables.
a. False*
b. True
13.

Identification and definition of a problem

a.
cannot be done until alternatives are proposed.
b.
is the final step of problem solving.
c.
is the first step of decision making.*
d.
requires consideration of multiple criteria.

The next three questions are based on the following case:

A manufacturer of hot tubs makes two kinds of hot tubs Wishy and Washy. Wishy requires 5 hours
of labor and Washy requires 3 hours. Wishy needs 30 feet of tubing and Washy needs 20 feet. The
manufacturer expects to have 1000 labor hours and 6000 feet of tubing available. A single hot tub of
type Wishy requires 2 pumps whereas type Washy requires 3 pumps. He has 700 pumps at his
disposal. He expects to make a profit of $80 on each type of hot tub Wishy he sells and $60 on
Washy.
Let X= the number of Wishy bathtubs manufactured and Y= the number of Washy bathtubs
manufactured.
14.

The Objective Function for the problem is:

a. Min 80 X+60Y
b. Max 60X+80Y
c. Max 80X*60Y
d. Max 80X + 60Y*
e. None of the above.

15.

Which constraint(s) represent(s) the restriction on the amount of tubing?

a. 5X+3Y 1000
b. 2X+3Y < 700
c. 30X+20Y < 6000
d. 3X+2Y < 600
e. c and d both work.*

16.

The solution of 150 Wishy and 75 Washy tubs could be the unique optimal solution.
a. True.
b. False. *

The following six questions related to the GRAPHICAL LP PROBLEM are given below :

Examine the LP formula shown below. For your convenience I have already graphed the axes and
the feasible region, but I have not labeled the constraints. This appears in Figure 1. However, you
will still have to construct and move the iso-lines (objective function) in order to find the optimal
solution. I would suggest that you use the feasible region provided by me to plot your iso-lines.
Objective Function: Max 5X 4Y
Subject to:
X+Y 8
2X + Y 16
-3X + 2Y 8
X 3Y -10
X 0 and Y 0
Figure 1: Coordinate Axes and Feasible Region for LP Problem

17. What is the Constraint labeled A in the feasible region shown in Figure 1?
a. X + Y 8
b. X 3Y -10
c. -3X + 2Y 8
d.
2X + Y 16*
18. What is the Constraint labeled B in the feasible region shown in Figure 1?
a. X + Y 8
b. 2X + Y 16
c. X 3Y -10*
d.
-3X + 2Y 8
19. What is the Constraint labeled D in the feasible region shown in Figure 1?
a. -3X + 2Y 8*
b. 2X + Y 16
c. X 3Y -10
d. X + Y 8
20. Which extreme point is the optimal solution to the problem described above?
a. Intersection of A and B*
b. Intersection of A and D
c. Intersection of C and D
d. Intersection of B and C
e. Intersection of A and C
21. If you were to Minimize 3X+4Y, which extreme point would be the optimal solution?
a. Intersection of A and B
b. Intersection of A and D
c. Intersection of C and D
d. Intersection of B and C*
e. Intersection of A and C
22. Which objective function(s) would result in alternative (multiple) optima?
a. Min 2X + 2Y
b. Min 2X + Y
c. Max X 3Y
d. Max X + 2Y
e. Both a and c*

The next two questions are based on the following case

To establish a driver education school, organizers must decide how many cars, instructors, and
students to have. Costs are estimated as follows. Annual fixed costs to operate the school are
$100,000. The annual leasing cost per car is $6,000. The cost per instructor is $24,000 and two
instructors, working at different times, would share one car. Tuition for each student is $1,000.
Let x be the number of cars and y be the number of students.
23. The expression for total profit is given as,
a 1000x (100,000 + 54,000y)
b 1000y (100,000 + 24,000x)
c 1000y (100,000 + 6,000x)
d 1000y (100,000 + 54,000x)*
24. If they think, realistically, that 350 students will attend, then at most how many cars can be
leased without making a loss?
a 8
b 7
c 6
d 5
e 4*

The next four questions based on this case and on MS Excel outputs that follow
The Furniture City (FC) company makes 3 kinds of couches: (1) Standard, (2) Deluxe, and (3)
Luxury styles. Each couch goes through 3 production departments: (1) Cutting and Coloring, (2)
Assembly, and (3) Finishing. The total number of hours available each month in each of the above
departments is 600, 800 and 500, respectively. The time (in hours) required by 3 departments for
making each couch and the profit per couch are listed below. The company has a contract of
supplying at least a total of 350 Standard and Luxury couches per month.
Couch
Standard
Deluxe
Luxury

Cutting and
Coloring (hrs)
0.5
0.6
0.7

Assembly
(hrs)
0.6
0.7
0.6

Finishing
(hrs)
0.4
0.4
0.7

Profit ($)
160
180
250

The company would like to make a production plan to maximize its total profit.

Define S, D, L as the variables for the numbers of Standard, Deluxe and Luxury couches produced
by the company. Then the corresponding LP model is built as follows:
Max 160 S + 180 D + 250 L

Subject to:
0.5 S + 0.6 D + 0.7 L 600
0.6 S + 0.7 D + 0.6 L 800
0.4 S + 0.4 D + 0.7 L 500

(Cutting and Coloring)

(Assembly)
(Finishing)

S + L > 350

(contract supply)

All variables are non-negative.

When the above LP model is solved with Excel, we see the following Sensitivity Report.
Adjustable Cells
Cell
$B$11
$C$11
$D$11
Constraints

Name
S
D
L

Cell

Name
Cutting and
Coloring
Assembly
Finishing
Contract Supply

$B$16
$B$17
$B$18
$B$19

Final
Value
0
500
428.57
Final
Value
600
607.14
500
428.57

Reduced
Objective
Cost
Coefficient
-1.43
160
0
180
0
250

Allowable
Increase
1.43
34.29
65

Allowable
Decrease
1E+30
2.86
5

Shadow
Price

Allowable
Increase

Allowable
Decrease

185.71
0
171.43
0

Constraint
R.H. Side
600
800
500
350

27.5
1E+30
100
78.57

25. What is the optimal profit (value of the objective function) for Furniture City?
a. $90,000.
b. $107,142.86
c. $928.57
d. $120,000.
e. $197,142.86*
26. At what unit profit would FC consider producing Standards (S)?
a. If the unit profit of Standard decreases by $1.43.
b. If the unit profit of Standard increases by $1.
c. If the unit profit of Standard increases by $2.*
d. If the unit profit of Luxury increases by $2.

100
192.86
18.33
1E+30

e. Both b and c would work.

27. Which constraints have positive surplus or slack variables?
a. Constraints 1 and 2 only.
b. Constraints 2 and 4 only. *
c. Constraint 3 only.
d. Constraints 1 and 3 only.
e. Constraints 1, 2 and 4 only.
28. If the available assembly hours are cut down by 200, what would happen to the optimal solution
and the optimal profit?
a. Optimal solution would change but optimal profit would remain the same.
b. Both optimal solution and optimal profit would remain the same.
c. Optimal solution would change and optimal profit would increase.
d. Optimal solution would change and optimal profit would decrease. *
e. Optimal solution would remain the same but optimal profit would decrease.