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Transportation models and assignment models

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1. Pick the most accurate statement given below about the relationship between transportation models and assignment models in our LP world.

A. The models are unrelated in all ways.

B. The models are related because their union is legal in all 50 states.

C. Basic assignment models are transportation models with supply and demand set equal to 1.

D. Transportation models are assignment models without restrictions on integrality.

2. Coca-Cola’s “Simply Orange” product division ships oranges from three different groves to five processing plants. Typically, how many decision variables would be needed for the core distribution model? Additionally, how many combined supply and demand constraints would be needed?

A. 8 decision variables, 15 supply/demand constraints

B. 15 decision variables, 8 supply/demand constraints

C. 15 decision variables, 15 supply/demand constraints

D. Cannot be determined

3. Which of the following is the best example of an agency problem?

A. A CEO makes a decision that maximizes his or her own self-interest at the expense of shareholders

B. The CEO of one organization sits on the board of directors of another organization

C. Both shareholders and managers express an interest in maximizing organizational profits

D. A CEO decides to take a pay cut because the corporation is struggling

E. A female CEO receives less salary than she should just because she is a woman

Reference no: EM132186979

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