Transportation/Transshipment

Question 1

The characteristics below describe what type of problems?
1) A product is transported from a number of sources to a number of
destinations at the minimum possible cost
2) Each source is able to supply a fixed number of units of the product
3) Each destination has a fixed demand for the product
4) The LP model has constraints for supply at each source and
demand at each destination
5) All constraints are equalities in a balanced transportation
model where supply equals demand

Answer 1

Transportation

Question 2

The characteristics of this problem states that it is an extension of the transportation model

Answer 2

Transshipment Problems

Question 3

The items that can be transported for transshipment models include

Answer 3

• sources through transshipment points to destination
• one source to another
• one transshipment point to another
• one destination to another
• directly from sources to destinations

Question 4

When the supply at each source and demand at each destination is limited to one unit
- Balanced models, supply equals demand
- unbalanced, supply does not equal demand
These are characteristics of

Answer 4

Assignment Models

Question 5

An arrangement of paths (branches) connected at various points
(nodes) through which items move from one point to another that is known as

Answer 5

Network

Question 6

A railroad network consists of a number of fixed rail routes
(paths) connected by terminals at various junctions of the rail routes is an example of a

Answer 6

Network

Question 7

T/F- A network can be drawn as a diagram providing a picture of the system

Answer 7

True

Question 8

When a network can be drawn as a diagram providing a picture of the system this enables visual representation and enhanced understanding of what?

Answer 8

Networks

Question 9

What are the two components of network diagrams?

Answer 9

Nodes and Branches

Question 10

What component represents junction points or locations and are represented as circles on a network model diagram?

Answer 10

Nodes

Question 11

What are examples of nodes in a network flow diagram

Answer 11

Cities, intersections, air or railroad terminals

Question 12

What component connects nodes and represents flow for the network diagram models?
They are represented as lines in the diagram.

Answer 12

Branches

Question 13

What are some examples of branches for network flow diagrams?

Answer 13

Roads connecting cities, railroad tracks, air routes connecting terminals

Question 14

What are the three types of network flow problems?

Answer 14

Shortest Route
Minimal Spanning tree
Maximal Flow

Question 15

Which network flow problem finds the shortest distance b/w an origin and various destination points

Answer 15

Shortest Route Problems

Question 16

The summary below explains the method for how to solve which type of network flow problem?
1)Select the node with the shortest direct route from the origin
2) Establish a permanent set with the origin node and the node that
was selected in step 1
3) Determine all nodes directly connected to the permanent set nodes
4) Select the node with the shortest route from the group of nodes
directly connected to the permanent set nodes
5) Repeat steps 3 & 4 until all nodes have joined the permanent set

Answer 16

How to solve the Shortest Route Problem

Question 17

Which network flow problem connects all nodes in a network so that the total of the branch lengths are minimized?

Answer 17

Minimal Spanning Tree Problem

Question 18

The summary below explains the method for how to solve which type of network flow problem?
1) Select any starting node (conventionally, node 1)
2) Select the node closest to the starting node to join the spanning tree
3) Select the closest node not currently in the spanning tree
4) Repeat step 3 until all nodes have joined the spanning tree

Answer 18

How to solve Minimal Spanning Tree

Question 19

Which network flow problem maximizes the amount of flow of items from an origin to a destination point

Answer 19

Maximal Flow Problem

Question 20

The summary below explains the method for how to solve which type of network flow problem?
1) Arbitrarily select any path in the network from the origin to the destination
2) Adjust the capacities at each node by subtracting the maximal flow
for the path selected in step 1
3) Add the maximal flow along the path to the flow in the opposite
direction at each node
4) Repeat steps 1, 2, and 3 until there are no more paths with available flow capacity

Answer 20

How to solve maximal flow problems

Question 21

What kind of models are formulated under the assumption of certainty

Answer 21

LP Models

Question 22

T/F- All LP model coefficients and constraint values are known and constant.

Answer 22

True

Question 23

T/F- For LP models, solutions are denoted by values for decisions variables

Answer 23

True

Question 24

What are the two categories of decisions situations?

Answer 24

1) Probabilities cannot be assigned to future occurrences
2) Probabilities can be assigned to future occurrences

Question 25

What are the two components of decision making?

Answer 25

A state of nature A payoff table

Question 26

An actual event that may occur in the future is defined as

Answer 26

A state of nature

Question 27

A means of organizing a decisions situation, presenting the payoffs from different decisions given the various states of nature is defined as

Answer 27

A payoff table

Question 28

What are the 5 decision making criterias?

Answer 28

Maximax Maximin Minimax Regret Hurwicz Equal likelihood

Question 29

For this criterion, you must select the decision that will result in the maximum of maximum payoffs. Defined as an optimistic criterion

Answer 29

Maximax Criterion

Question 30

For this criterion, you must select the decision that will reflect the maximum of the minimum payoffs. Defined as a pessimistic criterion

Answer 30

Maximin

Question 31

For this criterion, you must select the decision that will minimize the maximum regret

Answer 31

Minimax Regret Criterion

Question 32

What is defined as the difference b/w the payoff from the best decision and all other decision payoffs

Answer 32

Regret

Question 33

For this criterion, a compromise b/w the maximal and maximin criteria where decision payoffs are weighted by a coefficient of optimism, determined by the decision maker

Answer 33

Hurwicz Criterion

Question 34

For this criterion, you must multiply the decision payoff for each state of nature by an equal weight. This criterion assumes that the states of nature are equally likely to occur

Answer 34

Equal Likelihood

Question 35

A decision that has a bette payoff than another decision under each state of nature is defined as

Answer 35

Dominant Decision

Question 36

What are the two decision making criteria with probabilities

Answer 36

1) Expected Value 2) Expected Opportunity Loss

Question 37

Which decision making criteria with probabilities, is computed by multiplying each decision outcome under each state of nature by the probability of its occurrence is defined as

Answer 37

Expected Value

Question 38

Which decision making criteria with probabilities, is computed by multiplying the probabilities by the regret (opportunity loss) for each decision outcome

Answer 38

Expected Opportunity Loss (EOL)

Question 39

The maximum amount a decision maker would pay for additional information is defined as

Answer 39

Expected Value of Perfect Information

Question 40

The best decision can be determined by the expected value of perfect information minus the expected value without perfect information

Answer 40

= Expected Opportunity Loss

Question 41

A diagram consisting of decision nodes (represented as squares),probability nodes (circles), and decision alternatives (branches). Provides an illustration (or picture) of the decision-making process and makes it easier to correctly compute the necessary expected value of each outcome and to understand the process of making the decision is defined as

Answer 41

Decision Tree

Question 42

What type of decision tree is used to illustrate a situation requiring a series of decisions. Used when a payoff table, limited to a single decision, cannot be used

Answer 42

Sequential Decision Tree