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Quantitative Methods: Operations research models

True and false

1. In a media selection problem, maximization of audience exposure may not result in maximization of total profit.

2. In an unbalanced transportation model, supply does not equal demand and supply constraints have signs.

3. Due to the unique characteristics of a transportation problem, the solution values of the decision variables are always integer values.

4. In a transportation problem, a demand constraint for a specific destination represents the amount of product demanded by a given destination (customer, retail outlet, store).

5. In maximization linear programming problem profit is maximized in the objective function by subtracting cost from revenue.

Solution Preview

Hello

1. In a media selection problem, maximization of audience exposure may not result in maximization of total profit.

Hint: In media selection problem we look at the efficiency of the particular media i.e. number of audiences reached per dollar spent on that media. So, media selection problem focus on maximizing the output from the advertising expenditure in terms of audience exposure. It assumes that the audience is homogenous in terms of profit. Therefore the statement is true.

2. In an unbalanced transportation model, supply does not equal demand and supply constraints have signs.

Hint: In an unbalanced transportation model, supply and demand are unequal. As far as supply constraints are concerned, it will always have ...

Solution Summary

Solution contains answers and explanation of multiple choice questions.

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