What is the Variable Cost Formula? - ANSWERUnit Variable Cost x Quantity Produced
T/F: Quantity produced is a decision option typically based on demand. - ANSWERTRUE
Multiple outputs may be evaluated using what? - ANSWEROne-Way data tables
Two-Way data tables can evaluate ONLY what? - ANSW...
What is the Variable Cost Formula? - ANSWERUnit Variable Cost x Quantity Produced
T/F: Quantity produced is a decision option typically based on demand. - ANSWERTRUE
Multiple outputs may be evaluated using what? - ANSWEROne-Way data tables
Two-Way data tables can evaluate ONLY what? - ANSWEROne output variable
What are Proportional Relationships? - ANSWEROften found in problems involving mixtures or
blends of materials or strategies
What are Balance Constraints? - ANSWEREssentially state that Input = Output and ensure that the
flow of material or money is accounted for at locations or between time periods.
T/F: Predictive models focus on understanding the future. - ANSWERTRUE
What are Sales Levels often used for? - ANSWERTo plan inventory levels.
What do Predictive Models incorporate? - ANSWERThey Incorporate the uncertainty element
What are Decision Variables? - ANSWERVariables you're trying to define
What is Objective Function? - ANSWERThe quantity that is to be minimized or maximized.
What is the most important tool in Prescriptive Analytics? - ANSWEROptimization
What are Constraints? - ANSWERLimitations, requirements, or other restrictions that are imposed on
any solution, either from practical or technological considerations or by management policy.
, What are Simple Bounds? - ANSWERConstrain the value of a single variable
What are Limitations? - ANSWERUsually involve the allocation of scarce resources
What are Requirements? - ANSWERInvolve the specification of minimum levels of performance
What is Integer Tolerance? - ANSWERThe parameter that specifies when the Solver algorithm will
terminate an optimization process with integer constraints
What should the Value of Integer Tolerance be? - ANSWERZERO
A poorly scaled 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...? -
ANSWERNumerical Instability
In the Solver options, you can check the box ____ ________ ________ and Solver will rescale the
values of the objective and constraint functions internally to minimize the effects of poor scaling. -
ANSWERUse Automatic Scaling
What elements does an Optimization Model have? - ANSWER1. Decision Variables
2. An objective to maximize or minimize
3. Constraints
What does it mean when a model has a unique Optimal Solution? - ANSWERThat there is exactly
ONE solution that will result in the maximum (or minimum) objective.
What is Verification? - ANSWERThe process of ensuring that a model is inaccurate and free from
logical errors.
What does the Data Validation Feature do? - ANSWERAllows you to define acceptable input values in
a spreadsheet and provides an error alert if an invalid entry is made. (This can help you avoid
inadvertent user errors)
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