LYCEUM OF THE PHILIPPINES UNIVERSITY – CAVITE

MIDTERM QUIZ IN QUANTITATIVE TECHNIQUES IN BUSINESS

NAME:_________________________________________COURSE:____________________ SCORE:____________
I. Write True if correct, otherwise write False (Strictly no erasures)
1. Moving average method is one of the methods of static forecasting.
2. Longer term forecasts are usually more accurate than short term ones.
3. The transportation model of linear programming assumes homogeneous commodities, deterministic supply,
and that there is a known per-unit shipping cost from every source to every destination
4. The Vogel’s method uses the shipping costs in an effort to produce a basic feasible solution that has a lower
total cost.
5. A transportation model must have the same number of rows as columns
6. The objective of a transportation problem is to schedule shipments from sources to destinations so that the
total transportation and production costs are minimized.
7. An assignment problem is also known as balanced transportation model.
8. Northwest corner rule or method can generate a basic feasible solution for a transportation problem.
9. An assignment problem is characterized by knowledge of the cost of shipping each supply point to each demand
point
10. The first step in the simplex solution process is to choose the variable with the lowest positive Cj - Zj to enter
the solution.

II. Multiple Choice – Write the letter of the best answer for each number
1. One of the three ways to establish initial solution of a transportation model is
a. Stepping stone method c. Northwest Corner Rule
b. Modified Distribution Method d. none of these
2. Which of the following is not a step in establishing Northwest corner rule?
a. Start in the upper left hand corner origin and allocate as many units as possible to this cell.
b. Start in the upper right hand corner origin and use as much supply from origin A as possible to
satisfy demand at destination A.
c. Reduce the available supply at the current origin and unsatisfied demand at the current destination
by the amount of the allocation
d. Identify the first origin with available supply. This is either the current origin of the one directly
below it.
e. None of the above
3. In less than or equal to constraint equations, variable which is used to balance both side of equations is
classified as
a. solving variable b.condition variable c. slack variable d. positive variable
4. According to algebra of simplex method, slack variables are assigned zero coefficients because
a. no contribution in objective function c. divisor contribution in objective function
b. high contribution in objective function d. base contribution in objective function
5. In simplex method, slack, surplus and artificial variables are restricted to be
a. Multiplied b. negative c. non negative d. divided
6. In simplex method, feasible basic solution must satisfy the
a. non-negativity constraint b.negativity constraint c.basic constraint d.common constraint
7. It allows problem allows shipment between supply points and between demand points, and it may also contain
transshipment points through which goods may be shipped on their way from a supply point to a demand point.
a. Transportation b. assignment c. transshipment d. trans assignment
8. In general, a transportation problem is specified by the following information:
a. A set of m supply points from which a good is shipped.
 b. A set of n demand points to which the good is shipped
c. Each unit produced at supply point i and shipped to demand point j incurs a variable cost of cij.
d. Only a and b
e. All of them
9. In method of solving by enumeration, two variables should be set as zero are classified as
a. basic constant b. non basic constant c.optimal variable d.non basic variables
10. In method of solving by enumeration, two variables should be set as zero are classified as
a. basic constant b. non basic constant c. optimal variable c. non basic variables

III. Problem Solving

1. One gram of soybean meal provides at least 2.5 units of vitamins and 5 calories. One gram of meat provides at
least 4.5 units of vitamins and 3 calories. One gram of grain provides at least 5 units of vitamins and 10 calories.
If a gram of soybean meal costs 7 cents, a gram of meat costs 9 cents, and a gram of grain costs 11 cents, what
mixture of these three ingredients will provide at least 60 units of vitamins and 66 calories per serving at a
minimum cost? What will be the minimum cost?

2. Solve the transportation linear programming model using Northwest Corner Rule

W> W1 W2 W3 W4 Factory capacity

F1 19 30 50 10 7
F2 70 30 40 60 9
F3 40 8 70 20 18
Warehouse
Requirement 5 8 7 14 34

3. A businesswoman can travel to city A, city B, or city C. It is 122 miles to city A, 237 miles to city B, and 307
miles to city C. She can travel up to 3000 miles. Dining and other expenses are P95 in city A, P130 in city B, and
P180 in city C. Her expense account allows her to spend P2000. A trip to city A will generate P800 in sales,
while a trip to city B will generate P1300 and a trip to city C will generate P1800. How many trips should she
make to each city to maximize sales? Solve the problem using simplex method.