A supply-chain team is choosing shipment quantities and wants to spend as little as possible on transportation while meeting customer demand. Which quantity should its objective function minimize?
5 Optimization Basics for Supply Chains Online Quiz Questions
Use this free practice quiz with 20 questions to review 5 Optimization Basics for Supply Chains, test your knowledge, and prepare for your next test or exam.
A shipment plan is feasible if it satisfies every constraint, even if another feasible plan has a better objective value.
- A
True
- B
False
In a shipment-allocation model, what are the choices representing quantities shipped on each supplier-to-center route called?
A distribution center must receive exactly its stated demand. How should the model represent the total quantity shipped to that center?
- A
Make the center's total inbound shipments less than or equal to its demand
- B
Make the center's total inbound shipments greater than or equal to its demand
- C
Make the center's total inbound shipments equal to its demand
- D
Include the center's demand only in the objective function
Supplier 2 charges $3 per unit to ship to Center A. In a total-cost objective, that route contributes .
A shipment variable is measured in units, and its route cost is measured in dollars per unit. What unit does the resulting transportation-cost objective have?
- A
Dollars
- B
Units
- C
Dollars per unit
- D
Units per dollar
Unless integrality is specified, a basic linear program can allow fractional shipment quantities.
- A
True
- B
False
A plan ships 10 units from Supplier 1 to Center A, 30 from Supplier 1 to Center B, 10 from Supplier 2 to Center A, and 20 from Supplier 2 to Center B. Route costs are $2, $4, $3, and $1 per unit, respectively. What is the plan's total transportation cost? Enter the exact value in dollars.
Which statements describe a basic linear program with continuous decision variables? Select all that apply.
- A
Its objective function is linear.
- B
Its decision variables must always be whole numbers.
- C
Its constraints are linear.
- D
It can represent only decisions to open or close facilities.
If shipments may exceed a stated minimum requirement, use a constraint.
A company wants to model whether to open a warehouse and how many whole truckloads to dispatch. Which modeling changes can represent these requirements? Select all that apply.
- A
Use a binary variable to represent whether a warehouse is open.
- B
Keep every variable continuous and rely on the objective to force whole-number decisions.
- C
Use an integer variable for a quantity that must count whole truckloads.
- D
Remove the capacity constraints so the model can choose whole quantities.
When forecasts, costs, lead times, or capacities may be uncertain or out of date, teams should validate an optimization recommendation and test how it changes under different assumptions.
- A
True
- B
False
A shipment variable is measured in cases, but the supplier's capacity limit is entered in pallets. What should the modeler address before relying on the result?
- A
The model needs more decision variables.
- B
The objective should maximize the number of units shipped.
- C
The shipment and capacity units are inconsistent unless cases are converted to pallets or vice versa.
- D
The capacity should be placed in the objective instead of a constraint.
Formulate a linear program for a shipping problem with two suppliers and two distribution centers. Supplier 1 has capacity 40 units and per-unit costs of $2 to Center A and $4 to Center B. Supplier 2 has capacity 30 units and per-unit costs of $3 to Center A and $1 to Center B. Center A requires exactly 20 units, and Center B requires exactly 50 units. State the decision variables, objective, and constraints.
A supply-chain model decides how many units to ship from each supplier to each distribution center. Which part of the model represents those shipment quantities?
- A
The total shipping expense for all routes
- B
The quantity shipped from each supplier to each distribution center
- C
The maximum capacity of each supplier
- D
The requirement that each center's demand be met
A company wants its shipment plan to have the lowest possible total transportation expense. Which model component expresses that goal?
- A
The amount available from each supplier
- B
The quantity shipped on each route
- C
The total transportation expense to minimize
- D
The demand required at each distribution center
A distribution center must receive exactly 20 units. Which constraint form best represents this requirement?
- A
Use an equality constraint for the demand requirement.
- B
Use a less-than-or-equal constraint for the demand requirement.
- C
Leave demand out of the model because it is not a capacity.
- D
Put the demand requirement only in the objective function.
Under the proportionality assumption of a basic linear program, what happens to a route's modeled cost if its shipment quantity doubles?
- A
A route's cost is fixed regardless of how much is shipped.
- B
The cost of one route depends on the quantity shipped on every other route.
- C
The model automatically restricts each shipment to whole truckloads.
- D
Doubling the quantity shipped on a route doubles its modeled cost on that route.
A plan ships 20 units from Supplier 1 to Center A, 20 units from Supplier 1 to Center B, and 30 units from Supplier 2 to Center B. The per-unit costs are $2 from Supplier 1 to Center A, $4 from Supplier 1 to Center B, $3 from Supplier 2 to Center A, and $1 from Supplier 2 to Center B. What is the total transportation cost? Enter the numeric value in dollars.
An inventory-allocation model must respect a hard limit on how much space is available in each warehouse. What capacity limit should be represented in the model?