Week 2

Question 1

Allocation problem

Answer 1

calls for maximizing an objective to less than or equal constraints on capacity

Question 2

Product mix

Answer 2

allocation model with additional constraints

Question 3

Difference between allocation and product mix

Answer 3

Product mix has more constraints, therefore, the optimal solution tot he product mix problem has an objective function value less than or equal to the objective function of the optimal solution to the allocation problem

Question 4

Covering problems

Answer 4

minimizing an objective subject to greater than or equal (GT) constraints on required coverage

Question 5

Covering vs allocation?

Answer 5

allocation divides resources and assigns to competing activities, the covering model combines resources and coordinates activities

Question 6

Marginal Cost?

Answer 6

the cost added by producing one additional unit of a product or service.