Question

1.

Based on the following payoff table, answer the following:

Alternative	High	Low
Buy	90	-10
Rent	70	40
Lease	60	55
Prior Probability	0.4	0.6

The maximin strategy is:

Group of answer choices

A) Buy.

B) Rent.

C) Lease.

D) High.

E) Low.

2.

A manufacturing firm has three plants and wants to find the most efficient means of meeting the requirements of its four customers. The relevant information for the plants and customers, along with shipping costs in dollars per unit, are shown in the table below:

Factory	Customer 1	Customer 2	Customer 3	Customer 4	Factory Capacity
A	$15	$10	$20	$17	100
B	$20	$12	$19	$20	75
C	$22	$20	$25	$14	100
Customer Requirement	25	50	125	75

How many demand nodes are present in this problem?

Group of answer choices

A) 1

B) 2

C) 3

D) 4

E) 5

3.

A manufacturing firm has three plants and wants to find the most efficient means of meeting the requirements of its four customers. The relevant information for the plants and customers, along with shipping costs in dollars per unit, are shown in the table below:

Factory	Customer 1	Customer 2	Customer 3	Customer 4	Factory Capacity
A	$15	$10	$20	$17	100
B	$20	$12	$19	$20	75
C	$22	$20	$25	$14	100
Customer Requirement	25	50	125	75

How many arcs will the network have?

Group of answer choices

A) 3

B) 4

C) 7

D) 12

E) 15

4.

A manufacturing firm has three plants and wants to find the most efficient means of meeting the requirements of its four customers. The relevant information for the plants and customers, along with shipping costs in dollars per unit, are shown in the table below:

Factory	Customer 1	Customer 2	Customer 3	Customer 4	Factory Capacity
A	$15	$10	$20	$17	100
B	$20	$12	$19	$20	75
C	$22	$20	$25	$14	100
Customer Requirement	25	50	125	75

Note: This question requires Solver.

Formulate the problem in Solver and find the optimal solution. What is the optimal quantity to ship from Factory A to Customer 2?

Group of answer choices

A) 25 units

B) 50 units

C) 75 units

D) 100 units

E) 125 units

5.

A manufacturing firm has three plants and wants to find the most efficient means of meeting the requirements of its four customers. The relevant information for the plants and customers, along with shipping costs in dollars per unit, are shown in the table below:

Factory	Customer 1	Customer 2	Customer 3	Customer 4	Factory Capacity
A	$15	$10	$20	$17	100
B	$20	$12	$19	$20	75
C	$22	$20	$25	$14	100
Customer Requirement	25	50	125	75

Which type of network optimization problem is used to solve this problem?

Group of answer choices

A) Maximum-Cost Flow problem

B) Minimum-Cost Flow problem

C) Maximum Flow Problem

D) Minimum Flow Problem

E) Shortest Path Problem

Answer 1

1.The correct answer is option C :Lease

Min payoff of alternative Buy=-10

Min payoff of alternative Rent=40

Min payoff of alternative Lease=55

Maximin =Maximum of (minimum pay off of alternatives Buy,Rent,Lease)

=Max(-10,40,55)

=55

We select alternative Lease with associated payoff =55

2)The correct answer is option D.4

Number of demand nodes=Number of customers=4

3)The correct answer is option D.12

Number of supply nodes =number of factories=3

Number of demand nodes=Number of customers=4

Total number of arcs=3*4=12

4)The correct answer is option B.50 units

Using excel solver,we find the optimal solution that minimizes total cost.

Total cost=SUMPRODUCT(B3:E5,B9:E11)=$ 4475

In excel,

B16=SUM(B9:E9)

B17=SUM(B10:E10)

B18=SUM(B11:E11)

B19=SUM(B9:B11)

B20=SUM(C9:C11)

B21=SUM(D9:D11)

B22=SUM(E9:E11)

The optimal shipping pattern is highlighted in yellow:

Number of units shipped from Factory A to customer 2=50

5)The correct answer is option B.Minimum cost flow problem