In Robust Optimization, What Is Meant by the Term "Soft

question 74

Multiple Choice

In robust optimization, what is meant by the term "soft constraint"?

• A) A constraint that is not violated.
• B) A constraint that has a shadow price of zero.
• C) A constraint that can be violated slightly without serious repercussions.
• D) A constraint that can be violated dramatically without serious repercussions.
• E) A constraint that cannot be violated.

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Definitions:

Variable Overhead

Costs that vary with the level of production output, such as utilities for manufacturing equipment, which are not fixed.

Standard Cost

An estimated or pre-determined cost of manufacturing a product or performing a service, used for budgeting and performance evaluation.

Variable Manufacturing Overhead

Indirect production costs that fluctuate with the level of production output, such as utilities for the manufacturing plant.

Direct Labor-Hours

The total number of hours worked by employees directly involved in manufacturing goods or providing services.