CAIIB ABM UNIT 8 MCQ – Linear Programming. Practice CAIIB ABM Unit 8 Linear Programming MCQs. Master LP formulation, constraints, graphical and Simplex methods for optimal resource allocation.

Question 1: What is the primary purpose of Linear Programming techniques?
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Correct Answer: B. To allocate limited resources optimally among competing demands. Linear Programming involves mathematical methods specifically designed to find the best way to use restricted resources when faced with various needs or activities.
Question 2: For a problem to be solvable using Linear Programming, what characteristic must its constraints and objective function possess?
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Correct Answer: C. They must be linear. Linear Programming requires that the relationships represented by the objective function and the constraints can be expressed as straight lines or planes, meaning they are linear equations or inequalities.
Question 3: Which term describes the function that a decision-maker aims to maximise or minimise in a Linear Programming problem?
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Correct Answer: C. Objective function. In Linear Programming, the goal, such as maximising profit or minimising cost, is mathematically represented by the objective function.
Question 4: What are the variables called in a Linear Programming problem whose values need to be determined to find the optimal solution?
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Correct Answer: D. Decision variables. These represent the quantities or choices that can be controlled or decided upon to achieve the objective, like the number of units of different products to produce.
Question 5: Which condition is essential for formulating a Linear Programming problem, implying proportionality?
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Correct Answer: B. All equations must be linear. Linearity ensures that if inputs are scaled, outputs scale proportionally; for instance, if producing 1 unit requires 4 persons, producing 3 units requires 12 persons.
Question 6: In the context of Linear Programming formulation, what does the condition of being ‘deterministic’ mean for constraints?
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Correct Answer: C. The constraints are known with certainty and do not involve probabilities. Deterministic constraints mean that the values and relationships are fixed and known; the probability of their occurrence is assumed to be 1.0.
Question 7: What is a fundamental rule regarding the values of decision variables in a standard Linear Programming problem?
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Correct Answer: C. They must be non-negative. A standard requirement in Linear Programming is that the decision variables cannot take negative values; they must be zero or positive.
Question 8: A firm produces two products, X and Y. Producing one unit of X requires 3 hours of machine time, and one unit of Y requires 1 hour. The total available machine time per day is 10 hours. How is this capacity constraint represented mathematically?
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Correct Answer: C. 3x + y ≤ 10. This inequality indicates that the total machine hours used for producing x units of product X (3x hours) and y units of product Y (1y hour) must not exceed the available 10 hours.
Question 9: A firm produces radios (x) and television sets (y). Producing one radio requires 1 hour of assembly time, and one television set also requires 1 hour. The total available assembly time per day is 4 hours. How is this constraint expressed?
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Correct Answer: B. x + y ≤ 4. This inequality represents the limitation that the total assembly time used for radios (x hours) and television sets (y hours) cannot be more than the available 4 hours.
Question 10: A company produces radios (x) and televisions (y). A radio costs ₹500 in wages and ₹500 in materials (total ₹1000). A television costs ₹2500 in wages and ₹1500 in materials (total ₹4000). The firm has ₹12,000 cash available. How is this financial constraint formulated?
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Correct Answer: D. 1000x + 4000y ≤ 12000. The total cash needed for producing x radios (1000x) and y televisions (4000y) must be less than or equal to the available cash balance of ₹12,000.
Question 11: What approach provides a quick visual insight into the nature of Linear Programming problems, especially when involving only two decision variables?
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Correct Answer: C. Graphic Approach. Plotting the constraints on a graph allows for visualisation of the feasible region and helps in identifying the optimal solution, particularly for problems with two variables.
Question 12: In the standard Linear Programming (LP) format used for the Simplex method, what is done to convert inequality constraints (like ≤) into equations?
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Correct Answer: B. Slack variables are added. To transform ‘less than or equal to’ constraints into equalities, non-negative slack variables are introduced to represent the unused amount of the resource.
Question 13: A constraint is given as 4B + 6C ≤ 120. How is this converted into an equation for the standard LP format using a slack variable ‘m’?
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Correct Answer: B. 4B + 6C + m = 120. A non-negative slack variable ‘m’ is added to the left side of the ‘≤’ inequality to make it an equation, representing the difference between the limit (120) and the resources used (4B + 6C).
Question 14: In the Simplex method, what does the initial tableau represent?
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Correct Answer: C. The coefficients of variables in the standard LP format equations and the initial solution state. The initial tableau sets up the problem by showing the coefficients from the objective function and constraint equations, usually starting with a basic solution where only slack variables have non-zero values.
Question 15: In the Simplex tableau, how is the ‘entering variable’ (the variable to bring into the solution) typically identified in a maximization problem?
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Correct Answer: C. The variable with the most negative coefficient in the Z-row. In maximization problems, the variable corresponding to the largest negative value in the objective function row (Z-row) is chosen to enter the solution because increasing it offers the greatest potential improvement in the objective function value.
Question 16: After identifying the entering variable in the Simplex method, how is the ‘leaving variable’ (the variable to be replaced in the basis) determined?
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Correct Answer: B. By calculating the ratios of the ‘Solution’ column entries to the corresponding positive entries in the pivot column and selecting the variable associated with the smallest non-negative ratio. This ‘minimum ratio test’ ensures that feasibility (non-negativity of variables) is maintained in the next iteration.
Question 17: What is the ‘pivot entry’ or ‘pivot element’ in a Simplex tableau?
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Correct Answer: C. The element at the intersection of the pivot row (leaving variable’s row) and the pivot column (entering variable’s column). This element is crucial for performing the row operations to update the tableau in the next iteration.
Question 18: How is the ‘new pivot row’ calculated when updating the Simplex tableau?
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Correct Answer: B. Divide the current pivot row by the pivot entry. This operation normalises the pivot row so that the pivot element becomes 1, preparing for the elimination of other non-zero entries in the pivot column.
Question 19: How are the other rows (non-pivot rows) updated in the Simplex tableau during an iteration?
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Correct Answer: C. New Row = Current Row – (Corresponding Pivot Column Entry) * (New Pivot Row). This formula uses row operations to make all other entries in the pivot column zero, effectively substituting the entering variable for the leaving variable in the basis.
Question 20: In a maximization problem using the Simplex method, when is the optimal solution reached?
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Correct Answer: B. When there are no negative numbers in the Z-row (objective function row). For maximization, a non-negative Z-row indicates that no further improvement in the objective function is possible by bringing any non-basic variable into the solution.
Question 21: How does the procedure for identifying the entering variable differ in a Simplex minimization problem compared to a maximization problem?
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Correct Answer: C. The variable associated with the largest positive value in the Z-row enters. In minimization problems, a positive value in the Z-row indicates a potential reduction in the objective function value, so the variable with the largest positive coefficient is chosen to enter.
Question 22: In the optimal Simplex tableau, what does a positive value for a slack variable indicate?
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Correct Answer: C. The corresponding resource is not fully used up (it is an abundant resource). A positive slack variable means there is unused capacity or surplus of the resource associated with that constraint.
Question 23: If a slack variable associated with a specific resource (e.g., workshop capacity) has a value of zero in the optimal Simplex tableau, what does this imply?
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Correct Answer: C. The resource is scarce and is being utilized to its full capacity. A zero value for a slack variable signifies that the corresponding constraint is binding, meaning the associated resource is fully consumed in achieving the optimal solution.
Question 24: What type of analysis using Linear Programming helps understand the effect of changes in costs or resource availability on the optimal solution and profit?
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Correct Answer: B. Sensitivity analysis. LP results can be further analysed to see how sensitive the optimal solution and objective function value are to changes in input parameters like costs or resource limits.
Question 25: What is Goal Programming, mentioned as a special type of Linear Programming?
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Correct Answer: B. A technique where desired goals are incorporated directly into the objective function, allowing for multiple objectives. Goal Programming allows decision-makers to specify target levels for various goals and seeks a solution that minimizes deviations from these targets.
Question 26: What key structural requirement must a problem satisfy to be solvable using Linear Programming (LP)?
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Correct Answer: B. All relationships (objective function and constraints) must be linear. LP requires that the goal (like profit or cost) and all limitations can be represented by linear equations or inequalities. For example, if cost increases directly with production quantity (e.g., Cost = 5 * Quantity), it’s linear; if it involves squared terms (e.g., Cost = 5 * Quantity^2), it’s non-linear and not suitable for standard LP.
Question 27: What fundamental information do ‘slack variables’ provide in the context of a Linear Programming solution?
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Correct Answer: B. They represent the amount of unused resources corresponding to ‘less than or equal to’ constraints. Slack variables are added to convert ‘≤’ inequalities into equations. For instance, if a constraint is MachineHours ≤ 100, and the optimal solution uses 90 hours, the slack variable for this constraint will be 10, indicating 10 unused machine hours.
Question 28: In the graphical method of solving LP problems, where is the optimal solution typically found?
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Correct Answer: C. At a corner point (vertex) of the feasible region. The feasible region is the area satisfying all constraints. Because the objective function is linear, the maximum or minimum value will occur at one of the vertices where the boundary lines of the constraints intersect. For example, if the feasible region is a triangle, the optimum will be at one of its three corners.
Question 29: Under what specific condition might a Linear Programming problem have multiple optimal solutions when using the graphical method?
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Correct Answer: B. When the objective function line is parallel to one of the constraint lines forming an edge of the feasible region. If the objective function slope matches the slope of a binding constraint that forms an edge of the feasible region, all points along that edge segment represent optimal solutions. For example, if Maximize Z = 2x + 2y and a constraint line x + y = 10 forms an edge of the feasible region, any combination of x and y on that line segment might yield the same maximum Z.
Question 30: What is the purpose of plotting the objective function line in the graphical method of solving an LP problem?
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Correct Answer: B. To identify which corner point of the feasible region yields the best value for the objective function. By plotting the objective function (often as a line representing a certain profit/cost level) and moving it parallelly across the feasible region, one can find the corner point that the line touches last (for maximization) or first (for minimization) while still being in the feasible region, thus identifying the optimum. For example, moving the profit line outwards until it just touches the last corner of the feasible area.
Question 31: Model Transport Ltd. needs to mix Fuel A (x litres) and Fuel B (y litres). What constraint represents the requirement that the total mixture must be no less than 3000 litres?
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Correct Answer: C. x + y >= 3000. The total volume of the mixture is the sum of the volumes of Fuel A (x) and Fuel B (y). The phrase “no less than” translates to “greater than or equal to” (>=).
Question 32: Model Transport Ltd. has a maximum storage capacity of 4000 litres for the mixed fuel. How is this constraint represented, using x for Fuel A litres and y for Fuel B litres?
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Correct Answer: B. x + y <= 4000. The total amount of fuel stored, which is the sum of Fuel A (x) and Fuel B (y), cannot exceed the maximum capacity of 4000 litres. “Maximum capacity” implies “less than or equal to” (<=).
Question 33: Model Transport Ltd. has 2,000 litres of Fuel A and 4,000 litres of Fuel B available. Which constraints represent the availability of individual fuels?
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Correct Answer: A. x <= 2000 and y <= 4000. The amount of Fuel A used (x) cannot exceed the available 2,000 litres, and the amount of Fuel B used (y) cannot exceed the available 4,000 litres.
Question 34: The mixed fuel for Model Transport Ltd. must have an octane rating of no less than 80. Fuel A has octane 90, and Fuel B has octane 75. How is this quality constraint formulated, where x is litres of Fuel A and y is litres of Fuel B? (Hint: Octane rating is a weighted average).
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Correct Answer: B. (90x + 75y)⁄(x+y) >= 80. The weighted average octane is the total octane (90x + 75y) divided by the total volume (x+y). This average must be “no less than” (>=) 80.
Question 35: Model Transport Ltd. wants to minimise costs. Fuel A costs Rs. 20 per litre (x) and Fuel B costs Rs. 13.33 per litre (y). What is the objective function?
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Correct Answer: B. Minimise Z = 20x + 13.33y. The total cost is the sum of the cost of Fuel A (20 times the litres of A, x) and the cost of Fuel B (13.33 times the litres of B, y). The company aims to minimise this total cost.
Question 36: A hospital diet requires between 1,800 and 3,600 calories. If the diet is made of Food A (x kg) and Food B (y kg), and Food A provides 600 calories/kg (200 starch + 400 protein) and Food B provides 900 calories/kg (700 starch + 100 protein + 100 fat), how are the total calorie constraints represented?
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Correct Answer: B. 600x + 900y >= 1800 AND 600x + 900y <= 3600. Total calories from Food A (600x) plus Food B (900y) must be greater than or equal to 1,800 and less than or equal to 3,600.
Question 37: The hospital diet must contain no more than 1,400 starch calories. Food A (x kg) has 200 starch calories/kg, and Food B (y kg) has 700 starch calories/kg. How is this starch constraint written?
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Correct Answer: D. 200x + 700y <= 1400. The total starch calories from Food A (200x) plus Food B (700y) must be “no more than,” which means less than or equal to (<=), 1,400.
Question 38: The hospital diet requires no less than 400 protein calories. Food A (x kg) has 400 protein calories/kg, and Food B (y kg) has 100 protein calories/kg. What is the protein constraint?
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Correct Answer: B. 400x + 100y >= 400. The total protein from Food A (400x) plus Food B (100y) must be “no less than,” meaning greater than or equal to (>=), 400 calories.