In Solving the NLP Problem, Solver Produced a Message "Solver

question 3

Multiple Choice

In solving the NLP problem, Solver produced a message "Solver cannot improve the current solution. All constraints are satisfied." This means that Solver found:

• A) a local optimal solution
• B) a global optimal solution
• C) the objective function changed very slowly for the last few iterations
• D) a degenerate model

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected (or standard) amount based on efficient operations.

Standard Costing System

A cost accounting system that uses cost estimates for material, labor, and overhead to calculate a standard cost for products.

Variable Manufacturing Overhead

Manufacturing costs that vary in direct proportion to changes in production volume, such as utilities and indirect materials.

Machine-hours

A measure of production output based on the number of hours machines are operated within a given period.