Variable Cost of Production -ANSWER- logic suggests that variable cost is the unit variable cost times the quantity of item produced.
Variable cost = -ANSWER- unit variable cost * quantity produced
Total Cost = -ANSWER- fixed cost + variable cost + Quantity Produced
Demand -ANSWER- has an ...
example of multiple outputs being evaluated using one way data tables -ANSWER-
profit and revenue
two-way data tables can evaluate how many output variables? -ANSWER- one
how to evaluate multiple output variables? -ANSWER- construct multiple two-way tables
net income = -ANSWER- sales- cost of goods sold - admin expenses - selling expenses
- depreciation expenses - interest expenses - taxes
predictive models focus on understanding the ________ -ANSWER- future
practical business models focus on predicting _______,__________,_________ -
ANSWER- financial performance, customer retention, and product sales.
sales levels are often used to plan _________ _________ -ANSWER- inventory levels
predictive models usually involve multiple ______ _________ -ANSWER- time period
Predictive models incorporate the __________ __________ -ANSWER- uncertainty
element
optimization models have been used extensively in ________, ______, ______,
_______, ______, _______ -ANSWER- operations and supply chains, finance,
marketing, and other disciplines
Optimization is the process of selecting values of _______ _______ _______ _______
_______ _______ _______ _______ -ANSWER- decision variables that minimize or
maximize some quantity of interest
, Objective function is the quantity that is to be _______ _______ -ANSWER- minimized
or maximized
Optimization is the most important tool in _______ _______ -ANSWER- prescriptive
analytics
Constraints are _______, ________, _________ that are imposed on any solution,
either from practical or technological considerations or by management policy. -
ANSWER- limitations, requirements, or other restrictions
Constraint categories: Simple Bonds -ANSWER- constrain the value of a single variable
Constraint categories: Limitations -ANSWER- usually involve the allocation of scarce
resources
Constraint categories: Requirements -ANSWER- involve the specification of minimum
levels of performance
Constraint categories: Balance constraints -ANSWER- essentially state that input =
output and ensure that the flow of material or money is accounted for at locations or
between time periods
Solver -ANSWER- an add-in package with Excel
Solver was developed by -ANSWER- Frontline Systems Inc.
Solver can be used to solve .... -ANSWER- many different types of optimization
problems
Integer tolerance -ANSWER- the parameter that specifies when the Solver algorithm will
terminate an optimization process with integer constraints
The value of Integer Tolerance should be ______ in order to find -ANSWER- zero
Many types of financial investment problems are modeled and solved using _______
_______ -ANSWER- linear optimization
A poorly scaled model is one that computes values of ______, ______, ______ that
differ by several orders of magnitude -ANSWER- objective, constraints, or intermediate
results
As a result of poorly scaled models solver _____________ -ANSWER- may detect or
suffer from numerical instability
Poor scaling can cause Solver engines to ....... -ANSWER- return different error
messages
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