Question

Why do we need binary variables in our model? Select one or more: a. To represent 2 type of variables. b. To represent total amount of money needed for investment. c. To represent yes or no type of variables. (To invest or not) d. To represent number of unit to be produced. What are the application of Operation Research? Select one or more: a. Dispatching Shipment b. Airline scheduling c. All of the above d. Investment Analysis In a production application involving a fixed setup cost and a variable cost, the use of makes including the setup cost possible in a production model. Select one or more: a. Objective Function Coefficients b. Binary Variables c. Location variables d. Non-integer Constraints Binary variables are identified with the designation in the Solver Parameters dialog box. Select one or more: Da, bin b. O and 1 C. det d. int

Answer 1

1. We need binary variables :

Option C) To represent Yes or No type conditions.. Is Correct

Binary Variables are those variables that can take either 0 or 1 as it's values. It means either yes or no for a given condition.

2. Application of Operations research:

C) All of the above.

Operations research applying linear programming and optimization techniques to apply to diverse cases like

• Airline scheduling - Scheduling flights for given pair of routes and given number of pilots and attendants
• Shipment Dispatch - Transportation problem involving reducing transportation costs
• Investment Analysis - Optimizing Investment portfolio by minimizing the standard deviation of risks associated with each of the investments under consideration.

3.

Option B) Binary Variables is correct.

Binary variables help represent whether we need to represent Fixed Setup costs in our model or not while we set up our optimization model for production application.

4. Option A) is correct.

Binary Variables is represented by the function "Bin" representing 0-1 Variables.