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
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller NursingTutor1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.