Total Cost = - ANSWER-Fixed Cost + Variable Cost* Quantity Produced
Also written as C=F+VQ
Logic suggests that variable cost is the unit variable cost times the quantity of item
produced. Thus a ____________ would be - ANSWER-descriptive model
_______has an influence on profit by predicting how many units of a product will be
sold.______________produced is a decision option typically based on demand. -
ANSWER-1) Demand
2) Quantity
The spreadsheet model for _____ is revenue minus variable cost minus fixed cost. -
ANSWER-1)Profit
Profit= Revenue-Variable cost-fixed cost
Multiple outputs may be evaluated using _______________. For example, profit and
revenue. - ANSWER-one way data tables
_____________can evaluate only one output variable. To evaluate multiple output
variables, you must construct ___________________. - ANSWER-1)Two-way tables
2)multiple two-way tables
___________focus on understanding the future. - ANSWER-Predictive Models
______________focus on predicting financial performance, customer retention, and
product sales. - ANSWER-Practical business models
____________are often used to plan inventory sales. - ANSWER-Sales levels
___________usually involve multiple time periods. - ANSWER-Predictive models
______________incorporate the uncertainty element. - ANSWER-Predictive models
_______________ have benn used extensively in operations and supply chains,
finance, marketing, and other disciplines. - ANSWER-Optimization Models
, __________is the process of selecting values of decision variables that minimize or
maximize some quantity of interest. - ANSWER-Optimization
________is the quantity that is to be minimized or maximized. - ANSWER-Objective
Function
Optimization is the most important tool in _____________. - ANSWER-Prescriptive
Analytics
_____________ are limitations, requirements, or other restrictions that are imposed on
any solution, either from practical or technological considerations or by management
policy. - ANSWER-Constraints
an add-in package with Excel that was developed by Frontline Systems Inc. and can be
used to solve many different types of optimization problems. - ANSWER-Solver
____________is the parameter that specifies when the Solver algorithm will terminate
an optimization process with integer constraints. - ANSWER-Integer Tolerance
The value of Integer Tolerance should be _______ in order to find the guaranteed
optimal integer solution. - ANSWER-Zero
Many types of financial investment problems are modeled and solved using ______. -
ANSWER-linear optimization
A _________ model is one that computes values of the objective, constraints, or
intermediate results that differ by several orders of magnitude. As a result, Solver may
detect or suffer from "_______________." - ANSWER-1) Poorly Scaled
2)Numerical Instability
Poor scaling can cause Solver engines to return _______________. - ANSWER-
Different error messages
In the Solver options, you can check the box ______________ and ________will
rescale the values of the objective and constraint functions internally to minimize the
effects of poor scaling. - ANSWER-1)Use Automatic Scaling
2)Solver
The best way to avoid scaling problems is to choose the ___________ implicitly used in
your model. - ANSWER-units
An optimization model has the following elements. (Hint 3) - ANSWER-1)Decision
Variables
2)An objective to maximize or minimize
3)Constraints
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