4) The constraint , when converted to an = constraint for use in the
simplex algorithm, will be .
5) In solving maximization assignment problems,
A) just reverse all the decision rules used in the minimizing algorithm (if it says
subtract, now add, and so on).
B) convert the problem to an equivalent minimization problem.
C) use the Australian transformation process and convert the data.
D) All of the above
E) None of the above
6) Purinnerds Dog Food is a very popular product at Kay Gnein’s corner grocery.
Demand for this is relatively constant, and the total demand for the year is 1,200 bags.
The cost of placing an order is $50, while the holding cost is $3 per unit per year. The
store is open 300 days per year. Lead-time for this is 8 days.
(a) If Kay places 50 orders per year, what would her annual ordering and holding costs
be?
(b) If Kay wishes to minimize her total inventory cost, how many units should she order
each time an order is placed?
(c) What is the reorder point?
7) The fax machine in an office is very unreliable. If it was working yesterday, there is
an 90% chance it will work today. If it was not working yesterday, there is a 5% chance
it will work today.
(a) What is the probability that it is not working today, if it was not working yesterday?
(b) If it was working yesterday, what is the probability that it is working today?