7-1 CHAPTER 7 NETWORK OPTIMIZATION PROBLEMS Review Questions 7.1-1 A supply node is a node where the net amount of flow generated is a fixed positive number. A demand node is a node where the net amount of flow generated is a fixed negative number. A transshipment node is a node where the net amount of flow generated is fixed at zero. 7.1-2 The maximum amount of flow allowed through an arc is referred to as the capacity of that arc. 7.1-3 The objective is to minimize the total cost of sending the available supply through the network to satisfy the given demand. 7.1-4 The feasible solutions property is necessary. It states that a minimum cost flow problem will have a feasible solution if and only if the sum of the supplies from its supply nodes equals the sum of the demands at its demand nodes. 7.1-5 As long as all its supplies and demands have integer values, any minimum cost flow problem with feasible solutions is guaranteed to have an optimal solution with integer values for all its flow quantities. 7.1-6 Network simplex method. 7.1-7 Applications of minimum cost flow problems include operation of a distribution network, solid waste management, operation of a supply network, coordinating product mixes at plants, and cash flow management. 7.1-8 Transportation problems, assignment problems, transshipment problems, maximum flow problems, and shortest path problems are special types of minimum cost flow problems. 7.2-1 One of the company’s most important distribution centers (Los Angeles) urgently needs an increased flow of shipments from the company. 7.2-2 Auto replacement parts are flowing through the network from the company’s main factory in Europe to its distribution center in LA. 7....
