What Is One Assumption Made When Using Linear Programming to Optimize

question 22

Multiple Choice

What is one assumption made when using linear programming to optimize the assignment of shipping amounts from plants to regional centers?

• A)Supply must equal demand.
• B)All costs and volumes are known with certainty.
• C)There must be a solution.
• D)Supply cannot exceed demand.

---

Definitions:

Weighted Average

A calculation that takes into account the varying significance of different data points, more heavily influencing the average with more important or larger values.

FIFO

An inventory valuation method where the first items produced or purchased are the first ones considered sold, standing for "First-In, First-Out."

Departmental Production Report

A detailed document that summarizes the production activities and outcomes of a specific department within a manufacturing company.

Equivalent Units

A concept in cost accounting used to express a quantity of partially completed goods in terms of fully completed units.