Section 6.6 Review Questions 1. List and explain the assumptions involved in LP. a limited quantity of economic resources is available for allocation The resources are used in the production of products or services There are two or more ways in which the resources can be used. Each is called a solution or a program Each activity (product or service) in which the resources are used yields a return in terms of the stated goal The allocation is usually restricted by several limitations and requirements called constraints List and explain the characteristics of LP measured by a common unit (e.g, dollars, utility/!at is, they can be Returns from different allocations can be compared The return from any allocation is independent of other allocations The total return is the sum of the returns yielded by the different activities All data are known with certainty The resources are to be used in the most economical manner Describe an allocation problem a typical allocation problem focuses around the most efficient use of a scarce resource Define the product-mix problem A typical product-mix problem focuses around the most efficient ratios of two or more products to be produced Define the blend ing problem a typical blending problem combines the issues of an allocation problem (scarcity) with the issues of a product-mix problem(ratios) Copyright C2018 Pearson Education, Inc.7 Copyright © 2018Pearson Education, Inc. Section 6.6 Review Questions 1. List and explain the assumptions involved in LP. • A limited quantity of economic resources is available for allocation. • The resources are used in the production of products or services. • There are two or more ways in which the resources can be used. Each is called a solution or a program. • Each activity (product or service) in which the resources are used yields a return in terms of the stated goal. • The allocation is usually restricted by several limitations and requirements, called constraints. 2. List and explain the characteristics of LP. • Returns from different allocations can be compared; that is, they can be measured by a common unit (e.g., dollars, utility). • The return from any allocation is independent of other allocations. • The total return is the sum of the returns yielded by the different activities. • All data are known with certainty. • The resources are to be used in the most economical manner. 3. Describe an allocation problem. A typical allocation problem focuses around the most efficient use of a scarce resource. 4. Define the product-mix problem. A typical product-mix problem focuses around the most efficient ratios of two or more products to be produced. 5. Define the blending problem. A typical blending problem combines the issues of an allocation problem (scarcity) with the issues of a product-mix problem (ratios)