Consider the Equipment Replacement Problem Presented in the Chapter

question 36

Multiple Choice

Consider the equipment replacement problem presented in the chapter. Recall that in the network model formulation of this problem a node represents a year when the equipment was purchased. An arc from node i to node j indicates that the equipment purchased in year i can be replaced at the beginning of year j. How could the network model below be modified to depict an equipment purchase in year 4 and operating costs only through the remainder of the planning window?

• A)Modify the cost on arc 4-5 to account for only operating costs.
• B)Add a second arc 4-5 to represent just the operating costs.
• C)Add a dummy node, 6, so that arc 4-6 represents just the operating costs.
• D)Add a dummy node, 6, so that arc 4-5 represents operating costs and 5-6 represents new equipment purchase.

---

Definitions:

Laissez-Faire Leadership

A style of leadership that involves the avoidance or absence of leadership.

Transformational

Transformational describes something capable of inducing significant change or development in a system, process, or individual's way of thinking.

Transactional Leadership

A leadership style focused on the exchanges between leaders and followers, where performance is rewarded and non-performance might be punished.

Contingent Reward Behaviours

Actions taken by leaders to reward employees only when specific performance criteria are met.