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Intro to Management Science: Modeling and Case Studies, 6e (Hillier)
Chapter 7 Using Binary Integer Programming to Deal with Yes-or-No Decisions
1) Binary integer programming problems are those where all the decision variables restricted to
integer values are further restricted to be binary variables.
Answer: TRUE
Difficulty: 1 Easy
Topic: A Case Study: The California Manufacturing Co. Problem
Learning Objective: Describe how binary decision variables are used to represent yes-or-no
decisions.
Bloom's: Remember
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
2) Binary variables are variables whose only possible values are 0 or 1.
Answer: TRUE
Difficulty: 1 Easy
decisions.
Bloom's: Remember
3) Variables whose only possible values are 0 and 1 are called integer variables.
Answer: FALSE
Difficulty: 1 Easy
decisions.
Bloom's: Remember
4) A problems where all the variables are binary variables is called a pure BIP problem.
Answer: TRUE
Difficulty: 1 Easy
decisions.
Bloom's: Remember
1
Copyright © 2019 McGraw-Hill
5) Binary variables are best suited to be the decision variables when dealing with yes-or-no
decisions.
Answer: TRUE
Difficulty: 1 Easy
decisions.
Bloom's: Remember
6) A BIP problem considers one yes-or-no decision at a time with the objective of choosing the
best alternative.
Answer: FALSE
Difficulty: 1 Easy
decisions.
Bloom's: Remember
7) The algorithms available for solving BIP problems are much more efficient than those for linear
programming which is one of the advantages of formulating problems this way.
Answer: FALSE
Difficulty: 2 Medium
decisions.
Bloom's: Understand
8) If choosing one alternative from a group excludes choosing all of the others then these
alternatives are called mutually exclusive.
Answer: TRUE
Difficulty: 1 Easy
Learning Objective: Use binary decision variables to formulate constraints for mutually
exclusive alternatives and contingent decisions.
Bloom's: Remember
2
9) The constraint x1 + x2 + x3 ≤ 3 in a BIP represents mutually exclusive alternatives.
Answer: FALSE
Explanation: A mutually exclusive constraint allows at most one alternative to be selected (that
is, at most one variable can have a value of 1). The constraint x1 + x2 + x3 ≤ 3 allows selection of
0, 1, 2, or all 3 alternatives simultaneously.
Bloom's: Analyze
10) It is possible to have a constraint in a BIP that excludes the possibility of choosing none of the
alternatives available.
Answer: TRUE
Bloom's: Understand
11) A yes-or-no decision is a mutually exclusive decision if it can be yes only if a certain other
yes-or-no decision is yes.
Answer: FALSE
Bloom's: Understand
3
12) The constraint x1 ≤ x2 in a BIP problem means that alternative 2 cannot be selected unless
alternative 1 is also selected.
Answer: FALSE
Explanation: The constraint x1 ≤ x2 is a contingent constraint. It allows for selection of neither
alternative (x1 = x2 = 0), only the second alternative (x1 = 0, x2 = 1), or both alternatives (x1 = x2
= 1). The only action that is not allowed is selection of only the first alternative (x1 = 1, x2 = 0).
Bloom's: Analyze
13) BIP can be used in capital budgeting decisions to determine whether to invest a certain
amount.
Answer: TRUE
Difficulty: 1 Easy
Topic: Using BIP for Project Selection: The Tazer Corp. Problem
Learning Objective: Formulate a binary integer programming model for the selection of projects.
Bloom's: Remember
14) BIP can be used to determine the timing of activities.
Answer: TRUE
Difficulty: 1 Easy
Topic: Using BIP for Crew Scheduling: The Southwestern Airways Problem
Learning Objective: Formulate a binary integer programming model for crew scheduling in the
travel industry.
Bloom's: Remember
4
15) An auxiliary binary variable is an additional binary variable that is introduced into a model to
represent additional yes-or-no decisions.
Answer: FALSE
Difficulty: 1 Easy
Topic: Using Mixed BIP to Deal with Setup Costs for Initiating Production: The Revised
Wyndor Problem
Learning Objective: Use mixed binary integer programming to deal with setup costs for initiating
the production of a product.
Bloom's: Remember
16) A linear programming formulation is not valid for a product mix problem when there are setup
costs for initiating production.
Answer: TRUE
Difficulty: 1 Easy
Wyndor Problem
Bloom's: Remember
17) The Excel sensitivity report can be used to perform sensitivity analysis for integer
programming problems.
Answer: FALSE
Difficulty: 1 Easy
decisions.
Bloom's: Remember
5
18) A parameter analysis report can be used to perform sensitivity analysis for integer
programming problems.
Answer: TRUE
Difficulty: 1 Easy
decisions.
Bloom's: Remember
19) To model a situation where a setup cost will be charged if a certain product is produced, the
best approach is to include and Excel "IF" function.
Answer: FALSE
Difficulty: 1 Easy
Wyndor Problem
Bloom's: Remember
20) In a site selection problem, a common goal is to identify the set of locations that provides
adequate service at the minimum cost.
Answer: TRUE
Difficulty: 1 Easy
Topic: Using BIP for the Selection of Sites for Emergency Services Facilities: The Caliente City
Problem
Learning Objective: Formulate a binary integer programming model for the selection of sites for
facilities.
Bloom's: Remember
6
21) In a crew scheduling problem there is no need for a set covering constraint.
Answer: FALSE
Difficulty: 1 Easy
travel industry.
Bloom's: Remember
22) If activities A and B are mutually exclusive, the constraint xA ≤ xB will enforce this
relationship in a linear program.
Answer: FALSE
Explanation: The constraint xA ≤ xB will enforce a contingent relationship between activities A
and B.
Bloom's: Understand
23) If a firm wishes to choose at most 2 of 4 possible activities (A, B, C and D), the constraint xA +
xB + xC + xD ≥ 2 will enforce this relationship in a linear program.
Answer: FALSE
Explanation: The constraint xA + xB + xC + xD ≥ 2 will ensure that at least 2 of the 4 activities are
selected.
Bloom's: Understand
7
24) If a firm wishes to choose at least 2 of 4 possible activities (A, B, C and D), the constraint xA +
xB + xC + xD ≥ 2 will enforce this relationship in a linear program.
Answer: FALSE
Explanation: The constraint xA + xB + xC + xD ≥ 2 will ensure that at least 2 of the 4 activities are
selected.
Bloom's: Understand
25) When binary variables are used in a linear program, the Solver Sensitivity Report is not
available.
Answer: TRUE
Difficulty: 1 Easy
decisions.
Bloom's: Remember
26) Binary integer programming problems can answer which types of questions?
A) Should a project be undertaken?
B) Should an investment be made?
C) Should a plant be located at a particular location?
D) All of the choices are correct.
E) None of the choices is correct.
Answer: D
decisions.
Bloom's: Understand
8
27) Binary variables can have the following values:
A) 0 only.
B) 1 only.
C) any integer value less than 1.
D) 0 and 1 only.
E) any integer value greater than 1.
Answer: D
Difficulty: 1 Easy
decisions.
Bloom's: Remember
28) Binary integer programming can be used for:

A) capital budgeting.
B) site selection.
C) scheduling asset divestitures.
D) assignments of routes.
E) All of the choices are correct.
Answer: E
decisions.
Bloom's: Understand
9
29) In a BIP problem with 2 mutually exclusive alternatives, x1 and x2, the following constraint
needs to be added to the formulation:
A) x1 + x2 ≤ 1.
B) x1 + x2 ≥ 1.
C) x1 – x2 ≤ 1.
D) x1 – x2 = 1.
Answer: A
Explanation: The constraint x1 + x2 ≤ 1 allows at most one of the two options to be selected.
Bloom's: Understand
30) In a BIP problem with 2 mutually exclusive alternatives, x1 and x2, the following constraint
needs to be added to the formulation if one alternative must be chosen:
A) x1 + x2 ≤ 1.
B) x1 + x2 = 1.
C) x1 – x2 ≤ 1.
D) x1– x2 = 1.
Answer: B
Explanation: The constraint x1 + x2 = 1 requires that one (and only one) of the two options be
selected.
Bloom's: Understand
10
31) In a BIP problem, 1 corresponds to a yes decision and 0 to a no decision. If project A can be
undertaken only if project B is also undertaken then the following constraint needs to be added to
the formulation:
A) A + B ≤ 1.
B) A + B = 1.
C) A ≤ B.
D) B ≤ A.
Answer: C
Explanation: The contingent constraint A ≤ B allows project B to be selected independent of A,
but requires that B is selected if A will also be selected.
Bloom's: Understand
32) In a BIP problem, 1 corresponds to a yes decision and 0 to a no decision. If there are two
projects under consideration, A and B, and either both projects will be undertaken or no project
will be undertaken, then the following constraint needs to be added to the formulation:
A) A ≤ B.
B) A + B ≤ 2.
C) A ≥ B.
D) A = B.
Answer: D
Explanation: The contingent constraint A = B requires that either both project be selected (A = B
= 1) or that neither project be selected (A = B = 0).
Bloom's: Understand
11
33) In a BIP problem with 3 mutually exclusive alternatives, x1, x2, and x3, the following
constraint needs to be added to the formulation:
A) x1 + x2 + x3 ≤ 1.
B) x1 + x2 + x3 = 1.
C) x1 – x2 – x3 ≤ 1.
D) x1 – x2 – x3 = 1.
Answer: A
Explanation: The mutually exclusive constraint x1 + x2 +x3 ≤ 1 requires that at most one of the
projects be selected by allowing at most one of the variables to have a value of 1.
Bloom's: Understand
34) In a BIP problem, 1 corresponds to a yes decision and 0 to a no decision. If there are 4 projects
under consideration (A, B, C, and D) and at most 2 can be chosen then the following constraint
needs to be added to the formulation:
A) A + B + C + D ≤ 1.
B) A + B + C + D ≤ 2.
C) A + B + C + D ≤ 4.
D) A + B + C + D = 2.
Answer: B
Explanation: The constraint A + B + C + D ≤ 2 requires that at most two of the projects be
selected by allowing at most two of the variables to have a value of 1.
Bloom's: Understand
12
35) Which of the following techniques or tools can be used to perform sensitivity analysis for an
integer programming problem?
I. The sensitivity report.

II. Trial-and-error.
III. A parameter analysis report.
A) I only
B) II only
C) III only
D) I and II only
E) All of the choices are correct.
Answer: D
decisions.
Bloom's: Understand
13
36) A firm has prepared the following binary integer program to evaluate a number of potential
locations for new warehouses. The firm's goal is to maximize the net present value of their
decision while not spending more than their currently available capital.
Max 20x1 + 30x2 + 10x3 + 15x4

s.t. 5x1 + 7x2 + 12x3 + 11x4 ≤ 21 {Constraint 1}
x1 + x2 + x3 + x4 ≥ 2 {Constraint 2}
x1 + x2 ≤ 1 {Constraint 3}
x1 + x3 ≥ 1 {Constraint 4}
x2 = x4 {Constraint 5}
Which of the constraints enforces a mutually exclusive relationship?

A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5
Answer: C
Explanation: Constraint 3 allows at most one of the two variables to have a value of 1, which is a
mutually exclusive relationship.
Bloom's: Understand
14
Max 20x1 + 30x2 + 10x3 + 15x4

x1 + x2 + x3 + x4 ≥ 2 {Constraint 2}
Which of the constraints enforces a contingent relationship?

A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5
Answer: E
Explanation: Constraint 5 requires that option 2 and option 4 will have the same decision. Each
option is contingent on the other.
Bloom's: Understand
15
Max 20x1 + 30x2 + 10x3 + 15x4

x1 + x2 + x3 + x4 ≥ 2 {Constraint 2}
Which of the constraints ensures that at least two of the potential sites will be selected?
A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5
Answer: B
Explanation: Constraint 2 requires that at least two of the variables have a value of 1.
Bloom's: Understand
16
Max 20x1 + 30x2 + 10x3 + 15x4

x1 + x2 + x3 + x4 ≥ 2 {Constraint 2}
Which constraint ensures that the firm will not spend more capital than it has available (assume
that each potential location has a different cost)?
A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5
Answer: A
Explanation: Since all locations have a different cost, constraint 1 shows each selected location
(xj = 1) will consume a limited resource (capital).
Bloom's: Understand
17
40) Note: This problem requires the use of a linear programming application such as Solver or
Analytic Solver.
A firm has prepared the following binary integer program to evaluate a number of potential
Max 20x1 + 30x2 + 10x3 + 15x4

x1 + x2 + x3 + x4 ≥ 2 {Constraint 2}
Set up the problem in Excel and find the optimal solution. Which locations are selected?
A) Location 1
B) Location 2
C) Location 4
D) Locations 2 and 4
E) Locations 1 and 3
Answer: E
Explanation: The optimal solution selects locations 1 and 3 for the new warehouses.
Difficulty: 3 Hard
Bloom's: Analyze
AACSB: Technology
18
Analytic Solver.
A firm has prepared the following binary integer program to evaluate a number of potential
Max 20x1 + 30x2 + 10x3 + 15x4

x1 + x2 + x3 + x4 ≥ 2 {Constraint 2}
Set up the problem in Excel and find the optimal solution. What is the expected net present value
of the optimal solution?
A) 20
B) 30
C) 35
D) 40
E) 45
Answer: B
Explanation: The optimal solution selects locations 1 and 3 for the new warehouses and has an
expected value of 30.
Difficulty: 3 Hard
Bloom's: Analyze
AACSB: Technology
19
new capital projects. The firm's goal is to maximize the net present value of their decision while
not spending more than their currently available capital.
Max 100x1 + 120x2 + 90x3 + 135x4

x1 + x2 + x3 + x4 ≥ 2 {Constraint 2}
Which of the constraints enforces a mutually exclusive relationship?

A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5
Answer: C
Explanation: Constraint 3 allows at most one of the two variables to have a value of 1, which is a
mutually exclusive relationship.
Bloom's: Understand
20
Max 100x1 + 120x2 + 90x3 + 135x4

x1 + x2 + x3 + x4 ≥ 2 {Constraint 2}
Which of the constraints enforces a contingent relationship?

A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5
Answer: E
Explanation: Constraint 5 requires that option 1 and option 4 will have the same decision. Each
option is contingent on the other.
Bloom's: Understand
21
Max 100x1 + 120x2 + 90x3 + 135x4

x1 + x2 + x3 + x4 ≥ 2 {Constraint 2}
Which of the constraints ensures that at least two of the potential projects will be selected?
A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5
Answer: B
Explanation: Constraint 2 requires that at least two of the variables have a value of 1.
Bloom's: Understand
22
Max 100x1 + 120x2 + 90x3 + 135x4

x1 + x2 + x3 + x4 ≥ 2 {Constraint 2}
Which constraint ensures that the firm will not spend more capital than it has available (assume
that each potential project has a different cost)?
A) Constraint 1
B) Constraint 2
C) Constraint 3
D) Constraint 4
E) Constraint 5
Answer: A
Explanation: Since all projects have a different cost, constraint 1 shows each selected project (xj
= 1) will consume a limited resource (capital).
Bloom's: Understand
23
Analytic Solver.
A firm has prepared the following binary integer program to evaluate a number of potential new
capital projects. The firm's goal is to maximize the net present value of their decision while not
spending more than their currently available capital.
Max 100x1 + 120x2 + 90x3 + 135x4

x1 + x2 + x3 + x4 ≥ 2 {Constraint 2}
Set up the problem in Excel and find the optimal solution. Which projects are selected?
A) Project 1
B) Project 2
C) Project 4
D) Projects 2 and 3
E) Projects 1 and 3
Answer: D
Explanation: The optimal solution selects projects 2 and 3.
Difficulty: 3 Hard
Bloom's: Analyze
AACSB: Technology
24
Analytic Solver.
A firm has prepared the following binary integer program to evaluate a number of potential new
capital projects. The firm's goal is to maximize the net present value of their decision while not
spending more than their currently available capital.
Max 100x1 + 120x2 + 90x3 + 135x4

x1 + x2 + x3 + x4 ≥ 2 {Constraint 2}
Set up the problem in Excel and find the optimal solution. What is the expected net present value
of the optimal solution?
A) 210
B) 220
C) 235
D) 310
E) 435
Answer: A
Explanation: The optimal solution selects projects 2 and 3 and has an expected value of 210.
Difficulty: 3 Hard
Bloom's: Analyze
AACSB: Technology
25
48) A new pizza restaurant is moving into town. The owner is considering a number of potential
sites and would like to minimize the initial investment involved with purchasing locations.
However, the owner is very concerned about delivery time and wants to make sure that every
neighborhood in the city can have a pizza delivered in 15 minutes or less. The owner has divided
the city into 10 neighborhoods (A–J) and is currently considering a total of 8 different locations.
To help with the decision, the owner formulated the following linear programming model:
Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8

s.t.x1 + x2 + x5 + x7 ≥ 1 {Neighborhood A constraint}
x1 + x2 + x3 ≥ 1 {Neighborhood B constraint}
x5 + x6 + x8 ≥ 1 {Neighborhood C constraint}
x1 + x4 + x7 ≥ 1 {Neighborhood D constraint}
x2 + x3 + x7 ≥ 1 {Neighborhood E constraint}
x3 + x4 + x8 ≥ 1 {Neighborhood F constraint}
x2 + x5 + x7 ≥ 1 {Neighborhood G constraint}
x1 + x4 + x6 ≥ 1 {Neighborhood H constraint}
x1 + x6 + x8 ≥ 1 {Neighborhood I constraint}
x1 + x2 + x7 ≥ 1 {Neighborhood J constraint}
Which of the constraints is a set covering constraint?

A) Neighborhood A constraint
B) Neighborhood C constraint
C) Neighborhood F constraint
Answer: D
Explanation: All of the constraints (with the exception of the binary constraint) are set covering
constraints.
Problem
travel industry.
Bloom's: Understand
26
Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8

s.t. x1 + x2 + x5 + x7 ≥ 1 {Neighborhood A constraint}
Which of the locations is the most expensive?

A) Location 1.
B) Location 2.
C) Location 3.
D) Location 4.
E) Location 5.
Answer: D
Explanation: Because the objective is to minimize the cost of locations, the objective function
coefficient must represent the cost of each location. Therefore, location 4 (coefficient = 135) is the
most expensive of the choices.
Problem
facilities.
Bloom's: Understand
27
Min 100x1 + 120x2 + 90x3 + 135x4 +75x 5 + 85x6 + 110x7 + 135x8

Which of the locations is within 15 minutes of neighborhoods C, H, and I?

A) Location 2
B) Location 4
C) Location 6
D) Location 8
E) None of these locations is within 15 minutes of neighborhoods C, H, and I.
Answer: C
Explanation: The variable for location 6 (x6) appears in the set covering constraints for
neighborhoods C, H, and I.
Problem
facilities.
Bloom's: Understand
28
Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8

Which of the locations is NOT within 15 minutes of neighborhood A?

A) Location 1
B) Location 2
C) Location 5
D) Location 6
E) Location 7
Answer: D
Explanation: The variable for location 6 (x6) does not appear in the set covering constraint for
neighborhood A.
Problem
facilities.
Bloom's: Understand
29
Analytic Solver.
A new pizza restaurant is moving into town. The owner is considering a number of potential sites
and would like to minimize the initial investment involved with purchasing locations. However,
the owner is very concerned about delivery time and wants to make sure that every neighborhood
in the city can have a pizza delivered in 15 minutes or less. The owner has divided the city into 10
neighborhoods (A–J) and is currently considering a total of 8 different locations. To help with the
decision, the owner formulated the following linear programming model:
Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8

A) Location 1
B) Location 3
C) Location 5
D) None of locations 1, 3, and 5 are selected.
E) All of locations 1, 3, and 5 are selected.
Answer: E
Explanation: The optimal solution selects locations 1, 3, and 5.
Difficulty: 3 Hard
Problem
facilities.
Bloom's: Analyze
AACSB: Technology
30
Analytic Solver.
A new pizza restaurant is moving into town. The owner is considering a number of potential sites
and would like to minimize the initial investment involved with purchasing locations. However,
the owner is very concerned about delivery time and wants to make sure that every neighborhood
in the city can have a pizza delivered in 15 minutes or less. The owner has divided the city into 10
neighborhoods (A–J) and is currently considering a total of 8 different locations. To help with the
decision, the owner formulated the following linear programming model:
Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8

Set up the problem in Excel and find the optimal solution. What is the cost of the optimal set of
locations?
A) 210
B) 220
C) 265
D) 310
E) 435
Answer: C
Explanation: The optimal solution selects locations 1, 3, and 5 at a cost of 265.
Difficulty: 3 Hard
Problem
facilities.
Bloom's: Analyze
AACSB: Technology
31
54) The university administration would like to add some additional parking locations. To make
everyone happy, they would like each building to be within a 5 minute walk of one set of new
parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is
considering six locations for the new parking spaces, but would like to minimize the overall cost of
the project. In addition to the walking time requirement, the university would like to add at least 40
new parking spaces (at least 4 blocks of 10). To help with the decision, the management science
department formulated the following linear programming model:
Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6

s.t. x1 + x2 + x5 + x6 ≥ 1 {Residence Hall A constraint}
x1 + x2 + x3 ≥ 1 {Residence Hall B constraint}
x4 + x5 + x6 ≥ 1 {Science building constraint}
x1 + x4 + x5 ≥ 1 {Music building constraint}
x2 + x3 + x4 ≥ 1 {Math building constraint}
x3 + x4 + x5 ≥ 1 {Business building constraint}
x2 + x5 + x6 ≥ 1 {Auditorium constraint}
x1 + x4 + x6 ≥ 1 {Arena constraint}
x1 + x2 + x3 + x4 + x5 + x6 ≥ 4 {Total locations constraint}
I. Residence Hall A constraint.

II. Science building constraint.
III. Total locations constraint.
A) I only
B) II only
C) III only
D) All of these
E) I and II only
Answer: E
Explanation: All of the constraints (with the exception of the binary constraint and the Total
locations constraint) are set covering constraints.
Problem
facilities.
Bloom's: Understand
32
Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6

Which of the locations is the most expensive?

A) Location 2
B) Location 3
C) Location 4
D) Location 5
E) Location 6
Answer: E
Explanation: Because the objective is to minimize the cost of locations, the objective function
coefficient must represent the cost of each location. Therefore, location 6 (coefficient = 500) is the
most expensive of the choices.
Problem
facilities.
Bloom's: Understand
33
Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6

Which of the locations is within 5 minutes of the science, music, math, and business buildings?
A) Location 2
B) Location 4
C) Location 5
D) Location 6
E) None of these locations is within 5 minutes of the listed buildings.
Answer: B
Explanation: The variable for location 4 (x4) appears in the set covering constraints for the
science, music, math, and business buildings.
Problem
facilities.
Bloom's: Understand
34
Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6

Which of the locations is NOT within 5 minutes of the Arena?

A) Location 1
B) Location 2
C) Location 4
D) Location 6
E) Location 7
Answer: B
Explanation: The variable for location 4 (x4) does not appear in the set covering constraint for the
Arena.
Problem
facilities.
Bloom's: Understand
35
Analytic Solver.
The university administration would like to add some additional parking locations. To make
Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6

s.t. x1 + x2 + x5 + x6 ≥ 1{Residence Hall A constraint}
A) Locations 1, 3, 4, and 5
B) Locations 1, 2, 4, and 5
C) Locations 1, 2, 3, and 5
D) Locations 2, 3, 4, and 5
E) Locations 1, 3, and 5
Answer: B
Explanation: The optimal solution selects locations 1, 2, 4, and 5.
Difficulty: 3 Hard
Problem
facilities.
Bloom's: Analyze
AACSB: Technology
36
Analytic Solver.
The university administration would like to add some additional parking locations. To make
Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6

locations?
A) 1,445
B) 1,535
C) 1,655
D) 1,715
E) 1,865
Answer: B
Explanation: The optimal solution selects locations 1, 2, 4, and 5 at a cost of 1,535.
Difficulty: 3 Hard
Problem
facilities.
Bloom's: Analyze
AACSB: Technology
37
60) The university is scheduling cleaning crews for its ten buildings. Each crew has a different cost
and is qualified to clean only certain buildings. There are eight possible crews to choose from in
this case. The goal is to minimize costs while making sure that each building is cleaned. The
management science department formulated the following linear programming model to help with
the selection process.
Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8

s.t. x1 + x2 + x5 + x7 ≥ 1 {Building A constraint}
x1 + x2 + x3 ≥ 1 {Building B constraint}
x6 + x8 ≥ 1 {Building C constraint}
x1 + x4 + x7 ≥ 1 {Building D constraint}
x2 + x7 ≥ 1 {Building E constraint}
x3 + x8 ≥ 1 {Building F constraint}
x2 + x5 + x7 ≥ 1 {Building G constraint}
x1 + x4 + x6 ≥ 1 {Building H constraint}
x1 + x6 + x8 ≥ 1 {Building I constraint}
x1 + x2 + x7 ≥ 1 {Building J constraint}

A) Building A constraint
B) Building C constraint
C) Building F constraint
Answer: D
Explanation: All of the constraints (with the exception of the binary constraint) are set covering
constraints.
travel industry.
Bloom's: Understand
38
Min 200x1 + 250x2 + 225x3 + 190x4 +215x 5 + 245x6 + 235x7 + 220x8

Which of the crews is the least expensive?

A) Crew 1
B) Crew 2
C) Crew 3
D) Crew 4
E) Crew 5
Answer: D
Explanation: Because the objective is to minimize the cost of crews, the objective function
coefficient must represent the cost of each location. Therefore, crew 4 (coefficient = 190) is the
least expensive of the choices.
travel industry.
Bloom's: Understand
39
Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8

Which of the crews can be scheduled to clean buildings B and F?

A) Crew 3
B) Crew 4
C) Crew 6
D) Crew 7
E) Crew 8
Answer: A
Explanation: The variable for crew 3 (x3) appears in the set covering constraints for buildings B
and F.
travel industry.
Bloom's: Understand
40
Min200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8

Which of the crews can be scheduled to clean building A?

A) Crew 1
B) Crew 2
C) Crew 5
D) Crew 6
E) Crew 7
Answer: D
Explanation: The variable for location 6 (x6) does not appear in the set covering constraint for
building A.
travel industry.
Bloom's: Understand
41
Analytic Solver.
The university is scheduling cleaning crews for its ten buildings. Each crew has a different cost
Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8

Set up the problem in Excel and find the optimal solution. Which crews are selected?
A) Crews 1, 2, and 3
B) Crews 1, 5, and 6
C) Crews 1, 7, and 8
D) Crews 2, 3, and 5
E) Crews 3, 4, and 5.
Answer: E
Explanation: The optimal solution selects crews 1, 7, and 8.
Difficulty: 3 Hard
travel industry.
Bloom's: Analyze
AACSB: Technology
42
Analytic Solver.
The university is scheduling cleaning crews for its ten buildings. Each crew has a different cost
Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8

x1 + x6 + x8 ≥ 1{Building I constraint}
locations?
A) 255
B) 355
C) 455
D) 555
E) 655
Answer: E
Explanation: The optimal solution selects crews 1, 7, and 8 at a cost of 655.
Difficulty: 3 Hard
Problem
facilities.
Bloom's: Analyze
AACSB: Technology
43
66) A manufacturer has the capability to produce both chairs and tables. Both products use the
same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for
tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it
can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making
process, an analyst has formulated the following linear programming model:
Max 20x1 + 65x2 – 100y1 – 200y2

s.t. 5x1 + 10x2 ≤ 100 {Constraint 1}
20x1 + 50x2 ≥ 250 {Constraint 2}
1x1 + 1.5x2 ≤ 10 {Constraint 3}
My1 ≥ x1 {Constraint 4}
Which of the constraints limit the amount of raw materials that can be consumed?
A) Constraint 1
B) Constraint 4
C) Constraint 5
D) Constraint 1 and 4 only
E) None of these
Answer: A
Explanation: Constraints 1, 2, and 3 limit the amount of raw materials that can be consumed to
the available quantities.
Wyndor Problem
Bloom's: Understand
44
67) A manufacturer has the capability to produce both chairs and tables. Both products use the
same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for
tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it
can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making
process, an analyst has formulated the following linear programming model:
Max 20x1 + 65x2 – 100y1 – 200y2

s.t. 5x1 + 10x2 ≤ 100 {Constraint 1}
20x1 + 50x2 ≥ 250 {Constraint 2}
1x1 + 1.5x2 ≤ 10 {Constraint 3}
Which of the following would be a reasonable value for the variable "M"?
A) 100
B) 10
C) 1
D) 0.1
E) 0.01
Answer: A
Explanation: M is a "sufficiently" large number to ensure that Myj will exceed any reasonable
decision variable. In this case, production of chairs and tables could reasonably exceed 10, but not
100.
Wyndor Problem
Bloom's: Understand
45
Analytic Solver.
A manufacturer has the capability to produce both chairs and tables. Both products use the same
materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The
firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce.
The daily supply of wood, nails and paint is limited. To manage the decision-making process, an
analyst has formulated the following linear programming model:
Max 20x1 + 65x2 – 100y1 – 200y2

s.t. 5x1 + 10x2 ≤ 100 {Constraint 1}
20x1 + 50x2 ≥ 250 {Constraint 2}
1x1 + 1.5x2 ≤ 10 {Constraint 3}
Set up the problem in Excel and find the optimal solution. What is the optimal production
schedule?
A) 10 chairs, 0 tables
B) 0 chairs, 5 tables
C) 10 chairs, 5 tables
D) 5 chairs, 10 tables
E) 15 chairs, 5 tables
Answer: B
Explanation: After solving the linear program, the optimal production schedule is 0 chairs and 5
tables.
Difficulty: 3 Hard
Wyndor Problem
Bloom's: Analyze
AACSB: Technology
46
Analytic Solver.
A manufacturer has the capability to produce both chairs and tables. Both products use the same
materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The
firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce.
The daily supply of wood, nails and paint is limited. To manage the decision-making process, an
analyst has formulated the following linear programming model:
Max 20x1 + 65x2 – 100y1 – 200y2

s.t. 5x1 + 10x2 ≤ 100 {Constraint 1}
20x1 + 50x2 ≥ 250 {Constraint 2}
1x1 + 1.5x2 ≤ 10 {Constraint 3}
Set up the problem in Excel and find the optimal solution. What is the maximum profit possible?
A) $25
B) $50
C) $75
D) $100
E) $125
Answer: E
Explanation: After solving the linear program, the optimal production schedule is 0 chairs and 5
tables and the profit is $125.
Difficulty: 3 Hard
Wyndor Problem
Bloom's: Analyze
AACSB: Technology
47
70) A bakery produces both pies and cakes. Both products use the same materials (flour, sugar and
eggs) and both have a setup cost ($100 for cakes, $200 for pies). The baker earns a profit of $10 per
cake and $12 per pie and can sell as many of each as it can produce. The daily supply of flour,
sugar and eggs is limited. To manage the decision-making process, an analyst has formulated the
following linear programming model (assume that it is possible to produce fractional pies and
cakes for this example):
Max 10x1 + 12x2 – 100y1 – 200y2

s.t. 5x1 + 10x2 ≤ 1000 {Constraint 1}
2x1 + 5x2 ≥ 2500 {Constraint 2}
2x1 + 1x2 ≤ 300 {Constraint 3}
Which of the constraints limit the amount of raw materials that can be consumed?
A) Constraint 3
B) Constraint 4
C) Constraint 5
D) Constraint 3 and 4
E) None of these.
Answer: A
Explanation: Constraints 1, 2, and 3 limit the amount of raw materials that can be consumed to
the available quantities.
Wyndor Problem
Bloom's: Understand
48
71) A bakery produces both pies and cakes. Both products use the same materials (flour, sugar and
Max 10x1 + 12x2 – 100y1 – 200y2

s.t. 5x1 + 10x2 ≤ 1000 {Constraint 1}
2x1 + 5x2 ≥ 2500 {Constraint 2}
Which of the following would be a reasonable value for the variable "M"?
A) 0.1
B) 1
C) 10
D) 100
E) 1,000
Answer: E
Explanation: M is a "sufficiently" large number to ensure that Myj will exceed any reasonable
decision variable. In this case, production of pies and cakes could reasonably exceed 100, but not
1,000.
Wyndor Problem
Bloom's: Understand
49
Analytic Solver.
A bakery produces both pies and cakes. Both products use the same materials (flour, sugar and
Max 10x1 + 12x2 – 100y1 – 200y2

s.t. 5x1 + 10x2 ≤ 1000 {Constraint 1}
2x1 + 5x2 ≥ 2500 {Constraint 2}
Set up the problem in Excel and find the optimal solution. What is the optimal production
schedule?
A) 133⅓ cakes, 33⅓ pies
B) 133⅓ cakes, 0 pies
C) 0 cakes, 33⅓ pies
D) 33⅓ cakes, 133⅓ pies
E) 133⅓ cakes, 133⅓ pies
Answer: A
Explanation: After solving the linear program, the optimal production schedule is 133⅓ cakes
and 33⅓ pies.
Difficulty: 3 Hard
Wyndor Problem
Bloom's: Analyze
AACSB: Technology
50
Analytic Solver.
A bakery produces both pies and cakes. Both products use the same materials (flour, sugar and
Max 10x1 + 12x2 – 100y1 – 200y2

s.t. 5x1 + 10x2 ≤ 1000 {Constraint 1}
2x1 + 5x2 ≥ 2500 {Constraint 2}
A) $1,233.33
B) $1,333.33
C) $1,433.33
D) $1,533.33
E) $1,633.33
Answer: C
Explanation: After solving the linear program, the optimal production schedule is 133⅓ cakes
and 33⅓ pies and the profit is $1,433.33.
Difficulty: 3 Hard
Wyndor Problem
Bloom's: Analyze
AACSB: Technology
51
Analytic Solver.
Your employer is trying to select from a list of possible capital projects. The projects, along with
their cost and benefits, are listed below. The capital budget available is $1 million. In addition to
spending constraints, your employer would like to select at least two projects. If project 1 is chosen
then project 2 cannot be selected. Formulate the problem as a linear program and determine the
optimal solution.
Project Cost Net Present Value Notes

1 $ 250,000 $ 500,000 Cannot be selected if 2 is selected
2 $ 500,000 $ 750,000 Cannot be selected if 1 is selected
3 $ 290,000 $ 333,000
4 $ 650,000 $ 400,000
5 $ 750,000 $ 600,000
A) Project 1 and project 2

B) Project 1 and project 3
C) Project 1 and project 5
D) Project 2 and project 3
E) Project 3 and project 5
Answer: C
Explanation: Solving the linear program below shows that the optimal solution is to select
projects 1 and 5.
Max 500x1 + 750x2 + 333x3 + 400x4 + 600x5

s.t. 250x1 + 500x2 + 290x3 + 650x4 +750x5 ≤ 1000 {Capital}
x1 + x2 ≤ 1 {Projects 1 and 2 are mutually exclusive}
x1 + x2 + x3 + x4 + x5 ≥ 10200 {Select at least two projects}
Difficulty: 3 Hard
Bloom's: Create
AACSB: Analytical Thinking
52
Analytic Solver.
To enhance the safety of your facility, you decide to add more fire extinguishers. Your goal is to
have each area within 50 feet of a fire extinguisher, but to minimize the total number of fire
extinguishers you need to purchase. You have divided the facility into 7 zones and have identified
8 possible locations for fire extinguishers. The following table shows the distance (in feet) from
each zone to each potential location.
Distance to location (in feet)

Zone A Zone B Zone C Zone D Zone E Zone F Zone G
Location 1 51 40 70 73 36 32 50
Location 2 75 40 65 48 52 79 55
Location 3 58 73 74 64 41 59 67
Location 4 80 51 52 30 50 64 43
Location 5 42 38 59 54 41 74 55
Location 6 53 59 51 46 61 36 47
Location 7 71 52 62 67 63 62 30
Location 8 74 68 31 77 60 32 38
How many fire extinguishers should you purchase?

A) 2
B) 3
C) 4
D) 5
E) 6
53
Answer: B
Explanation: Solving the linear program below shows that the optimal solution is to select
locations 2, 5, and 8 (although other optimal solutions may exist, 3 fire extinguishers is the
minimum required).
Difficulty: 3 Hard
Problem
facilities.
Bloom's: Create
AACSB: Analytical Thinking
54
Test Bank for Introduction to Management Science: A Modeling and Case Studies Approach with
76) A manufacturer produces both widgets and gadgets. Widgets generate a profit of $50 each and
gadgets have a profit margin of $35 each. To produce each item, a setup cost is incurred. This setup
cost of $500 for widgets and $400 for gadgets. Widgets consume 4 units of raw material A and 5
units of raw material B. Gadgets consume 6 units of raw material A and 2 units of raw material B.
Each day, the manufacturer has 500 units of each raw material available.
A) $3,500
B) $4,500
C) $5,500
D) $6,500
E) $7,500
Answer: B
Explanation: After solving the linear program below, the optimal production schedule is 100
widgets and 0 gadgets, the profit is $4,500.
Max 50x1 + 35x2 – 500y1 – 400y2
s.t. 4x1 + 6x2 ≤ 500 {Raw material A}
5x1 + 2x2 ≤ 500 {Raw material B}
My1 ≥ x1 {Widget Setup Cost}
My2 ≥ x2 {Gadget Setup Cost}
Difficulty: 3 Hard
Wyndor Problem
Bloom's: Analyze
AACSB: Technology
55
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2) Binary variables are variables whose only possible values are 0 or 1.

14) BIP can be used to determine the timing of activities.

28) Binary integer programming can be used for:

I. The sensitivity report.

Max 20x1 + 30x2 + 10x3 + 15x4

Which of the constraints enforces a mutually exclusive relationship?

Max 20x1 + 30x2 + 10x3 + 15x4

Which of the constraints enforces a contingent relationship?

Max 20x1 + 30x2 + 10x3 + 15x4

Max 20x1 + 30x2 + 10x3 + 15x4

Max 20x1 + 30x2 + 10x3 + 15x4

Max 20x1 + 30x2 + 10x3 + 15x4

Max 100x1 + 120x2 + 90x3 + 135x4

Which of the constraints enforces a mutually exclusive relationship?

Max 100x1 + 120x2 + 90x3 + 135x4

Which of the constraints enforces a contingent relationship?

Max 100x1 + 120x2 + 90x3 + 135x4

Max 100x1 + 120x2 + 90x3 + 135x4

Max 100x1 + 120x2 + 90x3 + 135x4

Max 100x1 + 120x2 + 90x3 + 135x4

Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8

Which of the constraints is a set covering constraint?

Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8

Which of the locations is the most expensive?

Min 100x1 + 120x2 + 90x3 + 135x4 +75x 5 + 85x6 + 110x7 + 135x8

Which of the locations is within 15 minutes of neighborhoods C, H, and I?

Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8

Which of the locations is NOT within 15 minutes of neighborhood A?

Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8

Min 100x1 + 120x2 + 90x3 + 135x4 +75x5 + 85x6 + 110x7 + 135x8

Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6

Which of the constraints is a set covering constraint?

I. Residence Hall A constraint.

Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6

Which of the locations is the most expensive?

Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6

Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6

Which of the locations is NOT within 5 minutes of the Arena?

Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6

Min 400x1 + 375x2 + 425x3 + 350x4 +410x5 + 500x6

Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8

Which of the constraints is a set covering constraint?

Min 200x1 + 250x2 + 225x3 + 190x4 +215x 5 + 245x6 + 235x7 + 220x8

Which of the crews is the least expensive?

Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8

Which of the crews can be scheduled to clean buildings B and F?

Min200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8

Which of the crews can be scheduled to clean building A?

Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8

Min 200x1 + 250x2 + 225x3 + 190x4 +215x5 + 245x6 + 235x7 + 220x8

Max 20x1 + 65x2 – 100y1 – 200y2

Max 20x1 + 65x2 – 100y1 – 200y2

Max 20x1 + 65x2 – 100y1 – 200y2

Max 20x1 + 65x2 – 100y1 – 200y2

Max 10x1 + 12x2 – 100y1 – 200y2

Max 10x1 + 12x2 – 100y1 – 200y2

Max 10x1 + 12x2 – 100y1 – 200y2

Max 10x1 + 12x2 – 100y1 – 200y2

Project Cost Net Present Value Notes