QUANTECH

Question 1

mathematical technique for finding the best uses of an organization’s resources

Answer 1

Linear Programming

Question 2

a limit on the availability of resources

Answer 2

Constraint

Question 3

expression which shows the relationship between the variables in the problem and the firm’s goals

Answer 3

Objective Function

Question 4

the area containing all possible solutions to the problem which are feasible- those solutions which satisfy all the constraints in the problem

Answer 4

Area of feasible solutions

Question 5

an efficient method in solving Linear Programming problem

Answer 5

Simplex method

Question 6

variable used in Linear Programming to convert an inequality into an equation

Answer 6

Slack Variable

Question 7

column containing all the variables in a solution in the simplex tableau

Answer 7

Product Mix Column

Question 8

column in the simplex tableau which contains the profit or cost per unit for the variable in the solution

Answer 8

Cj column

Question 9

column in any solution to a maximizing problem which has the largest positive value in the Cj -Zj row or which has the largest negative value in a minimizing problem

Answer 9

Optimum Column

Question 10

a row in the simplex tableau which is replaced by the variable entering the new solution

Answer 10

Replaced row

Question 11

elements which are common to both the optimum column and the rows representing variables in the solution

Answer 11

Intersectional Elements

Question 12

row containing the opportunity costs of bringing one unit of a variable into the solution of a linear programming problem

Answer 12

ZJ row

Question 13

contains the net benefit or loss occasioned by bringing one unit of a variable into the solution of a linear programming problem

Answer 13

Cj-Zj row

Question 14

computational device used in linear programming to achieve an initial solution to the problem

Answer 14

Artificial Variable

Question 15

concerned with selecting optimal routes between sources and destinations

Answer 15

Transportation Problem

Question 16

special purpose algorithm for solving the transportation problem

Answer 16

Stepping Stone Method

Question 17

demand equals supply

Answer 17

Balanced Condition

Question 18

capacity constraints at sources and destinations in a transportation problem

Answer 18

Rim Requirements

Question 19

systematic and logical procedure for setting up the initial solution to a transportation problem

Answer 19

Northwest corner rule

Question 20

represents routes where no quantity between a source and a destination

Answer 20

Unused Squares

Question 21

the net change in cost occasioned by a one-unit change in the quantity shipped

Answer 21

Improvement Index

Question 22

used squares containing circled values that are in the solution

Answer 22

Stone Squares

Question 23

inventory level at which it is appropriate to replenish stock

Answer 23

Reorder point

Question 24

time required for the inventory to arrive after ab order is placed

Answer 24

Lead time

Question 25

when available inventory is not sufficient to satisfy demand

Answer 25

Stock out

Question 26

extra inventory held against the possibility of a stockout

Answer 26

Safety Stock

Question 27

incurred each time an order is placed

Answer 27

Ordering Cost

Question 28

referred to as holding cost; cost incurred in maintaining inventory

Answer 28

Carrying Cost

Question 29

size of the order which minimizes the total annual cost of ordering and carrying inventory

Answer 29

Economic Order Quantity (EOQ)

Question 30

a simplified special case of simplex method. This is a special procedure for transporting products from several sources to several destinations

Answer 30

Transportation Method

Question 31

What are the the two common objectives of transportation Method

Answer 31

1. To Minimize the Cost of shipping n units to x to destinations 2. To Maximize Profit of shipping n units to x destinations

Question 32

What are the steps in transportation method

Answer 32

STEPS: 1. Set up the Transportation Table 2. Develop an Initial Solution 3. Test the solution for improvement 4. Develop the Improved Solution