Introduction to Management Science 12th Edition

Expected opportunity loss is the expected value of the regret for each decision. Answer: TRUE Answer: TRUE Answer: TRUE There is exactly one optimal solution point to a linear program. Answer: FALSE Answer: FALSE Answer: FALSE Constraints for nonlinear programs are usually nonlinear. Answer: FALSE Answer: FALSE Answer: FALSE

Jolt - K The soda machine outside the lecture hall sees a steady stream of customers throughout the day. The machine takes 4 seconds to deliver a can of carbonated sugar water once the button is pressed and students generally know what they want from the machine - the average

What are the differences between deterministic and probabilistic techniques? Answer: Deterministic techniques assume that no uncertainty exists in the model parameters. Probabilistic techniques include uncertainty and assume that there can be more than one solution. Answer: Deterministic techniques assume that no uncertainty exists in the model parameters. Probabilistic techniques

Validation of a simulation model occurs when the true steady state average results have been reached. Answer: TRUE Answer: TRUE Answer: TRUE Branches connect nodes and show flow from one point to another. Answer: TRUE Answer: TRUE Answer: TRUE A key element of a decision support system (DSS) is

Nodes represent junction points connecting branches. Answer: TRUE Answer: TRUE Answer: TRUE Events are mutually exclusive if one, and only one, can occur at a time. Answer: TRUE Answer: TRUE Answer: TRUE If the number of unique assignments is less than the number of rows or columns, a line

Semester Prep The department chair reviewed last year's schedule, the degree requirements for the ever popular Operations and Supply Chain major, and the emails that had drifted into her mailbox over the last week. Naturally, every professor in the department had his own pet course and wanted to maintain control

Experiments with repeated independent trials will be described by the binomial distribution if: A) each trial result influences the next. B) each trial has exactly two outcomes whose probabilities do not change. C) the trials are continuous. D) the time between trials is constant. Answer: B Answer: B Answer: B What is the

Billy Hill's Still William J Hill runs a small batch artisnal bourbon distillery at a secluded location in the hills of Kentucky. He makes two products, known among his customers as Rotgut and White Lightning. The recipes for the two have been passed down in the Hill family for generations and

Cumulative probabilities are analogous to the discrete ranges of random numbers used in the Monte Carlo process. Answer: TRUE Answer: TRUE Answer: TRUE A two-person game encompasses two players. Answer: TRUE Answer: TRUE Answer: TRUE In a weighted moving average, weights must sum to 1. Answer: TRUE Answer: TRUE

The daily demand for a product is normally distributed with a mean of 80 and a standard deviation of 8. Constant lead time is 4 days. The cost of placing an order is $20. The item costs $8 and the carrying rate per year is 10% of the item

Use the following table to answer the question(s) below. What decision should be made under minimax regret? Answer: 3-way tie Answer: 3-way tie Answer: 3-way tie If one location for a warehouse can be selected only if a specific location for a manufacturing facility is also selected, this decision can be

A rendering plant wishes to use the data (sales records from a few local businesses and the month of the year) to help determine their supply level for the coming months. The records shown in the table provide an excellent opportunity for you to assist them with their forecasting. What

The following data summarizes the historical demand for a product: If the forecasted demand for June, July, and August is 32, 38 and 42, respectively, what is MAD? Answer: MAD = 4.67 Answer: MAD = 4.67 Answer: MAD = 4.67 Due to increased sales, a company is considering building three new

The objective function 3x + 2y + 4xy violates the assumption of ________. Answer: proportionality Answer: proportionality Answer: proportionality Use the following table to answer the question(s) below. What decision should be made by the optimistic decision maker? Answer: d2 Answer: d2 Answer: d2 The committee would like to assign three reviewers to each applicant. A partial

The assistant manager had taken a management science class a few years before and while she knew enough to formulate the problem and implement it in Excel, the only sensitivity training she had ever received had to do with being more empathetic to the plight of her minimum wage

The Cruise Their cruise would port out of New Orleans and promised seven days with a panoply of excursions in Jamaica, Cozumel, and Grand Cayman. A list of excursions at each site and key features of each appear in the table. The excursions were all day affairs, so it was possible

The ________ problem deals with the distribution of goods from several sources to several destinations. A) network B) assignment C) transportation D) transshipment Answer: C Answer: C Answer: C The local grocery store consists of two cashiers. The customers arrive at the checkout according to the Poisson distribution and the service times are

A point of equilibrium is a value that is simultaneously the minimum of a row and the maximum of a column. Answer: TRUE Answer: TRUE Answer: TRUE A posterior probability is the likelihood that an event has occurred after the decision maker has reached a decision. Answer: FALSE Answer:

A retired operations management professor moves to New Orleans, joins the Krewe of Orpheus and convinces krewe leadership to buy their own swizzle stick production equipment. They invest in a medium-scale machine called the Swizzo 2025, which is capable of producing swizzle sticks at the rate of 1800 per

A single-channel queuing system has an average service time of 10 minutes and an average time between arrivals of 15 minutes. What is the arrival rate? Answer: 4 per hour Answer: 4 per hour Answer: 4 per hour The sensitivity range for a(n) ________ coefficient is the range of

For the ________ inventory system, Q, the quantity ordered, can vary. Answer: periodic Answer: periodic Answer: periodic In a ________ transportation model where supply equals demand, all constraints are equalities. Answer: balanced Answer: balanced Answer: balanced In a factory, machines breakdown at an average of 6 machines per hour

Consider the following network, which shows the location of various facilities within a youth camp and the distances (in tens of yards) between each facility. Walking trails will be constructed to connect all the facilities. In order to preserve the natural beauty of the camp (and to minimize the construction

The Lagrange multiplier, , reflects a change in the objective function from a unit change in the ________ value of a constraint. Answer: right-hand-side Answer: right-hand-side Answer: right-hand-side The ________ normal distribution has a mean of 0 and a standard deviation of 1. Answer: standard Answer: standard Answer: standard

Jim is considering pursuing an MS in Information Systems degree. He has applied to two different universities. The acceptance rate for applicants with similar qualifications is 20% for University X and 45% for University Y. What is the probability that Jim will be accepted at both universities? Answer: 0.09 Answer:

Manual simulation is limited because of the amount of real time required to simulate even one trial. Answer: TRUE Answer: TRUE Answer: TRUE Shorter-period moving averages react more slowly to recent demand changes than do longer-period moving averages. Answer: FALSE Answer: FALSE Answer: FALSE An opportunity cost table is

The arrival rate can generally be described by a(n) ________ distribution. Answer: Poisson Answer: Poisson Answer: Poisson Max Z = x1 + 6x2 Subject to: 17x1 + 8x2 136 3x1 + 4x2 36 x1, x2 0 and integer Find the optimal solution. Answer: x1 = 0, x2 = 9, Z

A script writer has received an advance against royalties of $10,000. The royalty rate is $2 for every performance in the U.S., and $3 for every performance outside the U.S. Write an expression that could be used to compute the number of performances in order to cover the advance. Answer: 10000

In a transshipment problem, items may be transported from sources through transshipment points on to destinations. Answer: TRUE Answer: TRUE Answer: TRUE In portfolio selection problems, risk is measured by the variance of the return on the portfolio. Answer: TRUE Answer: TRUE Answer: TRUE In a transshipment problem, items may be transported from one destination to

Comedy Pasture A horse and two llamas are discussing the key areas of their domain on a lazy summer afternoon. The llamas favor the pond and shade and like to browse the fruit trees and oaks on the property, making their way to the barn only when their owner favors

The model was entered into an Excel spreadsheet and the table below shows part of the sensitivity report. Calculate the expected per unit profit for the three services. Answer: The model provides a solution that calls for only a sale price for P1 of $45.57 - coupled with its price

The derivative of a function equals the slope of the curve defined by that function. Answer: TRUE Answer: TRUE Answer: TRUE The first step in formulating a linear programming model is to define the objective function. Answer: FALSE Answer: FALSE Answer: FALSE The branch and bound method is a

Dinnertime A professor is planning an informal gathering for 100 or so of his closest friends. The project breaks down as follows: What is the early start time for the Hire valets activity? A) 31 B) 27 C) 23 D) 20 Answer: B Answer: B Answer: B In the formulation of a constraint: A) a surplus variable

Knowledgeable individuals bring their opinions to bear in ________, a qualitative method of forecasting. Answer: the Delphi method Answer: the Delphi method Answer: the Delphi method The first step in solving a linear programming model manually with the simplex method is to convert the model into ________ form. Answer: standard

In general, an increase in price increases the break-even point if all costs are held constant. Answer: FALSE Answer: FALSE Answer: FALSE In the regression equation y=a+bx, the slope of the equation is x. Answer: FALSE Answer: FALSE Answer: FALSE If variable costs increase, but price and fixed costs

An automotive center keeps tracks of customer complaints received each week. The probability distribution for complaints can be represented as the table shown below. The random variable xi represents the number of complaints, and p(xi) is the probability of receiving xi complaints. What is the average number of complaints received per

The minimal spanning tree problem is to connect all nodes in a network so that the total branch lengths are minimized. Answer: TRUE The appropriate criterion is dependent on the risk personality and philosophy of the decision maker. Answer: TRUE The first derivative of a cost function equals zero at the point V

A single-server queuing system has average time between arrivals of 20 minutes and a service time of 10 minutes each. Assuming Poisson arrivals and exponential service times, the utilization factor is approximately: A) 0.25. B) 0.33. C) 0.50. D) 2.0. Answer: C Answer: C Answer: C The production manager for the Coory soft

Management science modeling techniques focus on model construction and problem solution. Answer: TRUE In solving the facility location problem, the objective is to locate a centralized facility that serves customers or other facilities such that the distance traveled between the facility and customers or other facilities is minimized. Answer: TRUE Objective functions

An investor is consider four different opportunities, A, B, C, or D. The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below. Economic ConditionPoor Average Good Excellent Investment (S1) (S2) (S3) (S4) A 50 75 20 30 B 80 15 40 50 C -100

Project teams are made up of individuals from various areas and departments within a company. Answer: TRUE Answer: TRUE Answer: TRUE The basic single-server queuing model assumes an infinite calling population. Answer: TRUE Answer: TRUE Answer: TRUE The minimal spanning tree allows the visitation of each node without backtracking.

Spring is right around the corner and that can mean only one thing: it's time to incubate some eggs for a fresh crop of chickens to supplement the existing flock for the year. There are three breeds that are popular: Leghorns, Buff Orpingtons, and Cochins, and each has its

The Wiethoff Company has a contract to produce 10,000 garden hoses for a customer. Wiethoff has four XOAXOAerent machines that can produce this kind of hose. Because these machines are from XOAXOAerent manufacturers and use XOAXOAering technologies, their specifications are not the same and not all four machines have to

The value of the game is the defensive player's gain and the offensive player's loss in a zero-sum game. Answer: FALSE Answer: FALSE Answer: FALSE One aspect of project control is team building. Answer: FALSE Answer: FALSE Answer: FALSE In a transportation problem, a demand constraint for a specific

Canning Transport wants to move goods from three (3) factories to three (3) distribution centers. Information about the move is given below: Shipping costs are (in $): According to the Vogel's Approximation Method, the initial solution would give to cell CII a loading of ________. Answer: 0 or 25 units Answer: 0

The analytics gurus at Zevon realize that they had misformulated their demand curves. They now believe that demand for X1 is given by 1000 - 2.25p1, demand for X2 is given by 2000 - 3p2, and demand for X3 is given by 3000 - 3.5p3. This model is entered in

An investor has $80,000 to invest in three stocks, stock A costs $100, stock B costs $120 and stock C costs $80. Each stock A has a risk factor of 8, each stock B has a risk factor of 10 and each stock C has a risk factor of

A newsboy sells newspapers and his goal is to maximize profit. He kept a record of his sales for 125 days with the following result: His ordering policy is to order an amount each day that is equal to the previous day's demand. A newspaper costs the carrier 50 cents and

The ________ determines when an order should be placed for a continuous review inventory system. Answer: reorder point Answer: reorder point Answer: reorder point List the four properties of linear programming models and provide an example of a violation of each. Answer: Properties and brief discussions are contained in

In a given experiment the probabilities of mutually exclusive events sum to: A) o B) 0.5 C) 1 D) This cannot be answered without knowing the probability values of the events. Answer: C Answer: C Answer: C The ________ criterion results in the maximum of the minimum payoffs. A) minimax B) maximax C) maximin D) minimin Answer:

Answer: Answer: Answer: A company distributes repair parts for high-end appliances. The annual demand is 81,000 and the company operates 300 days per year. The annual carrying cost is 20% of the item cost, which is $500. The ordering cost is estimated at $60 and the shortage cost is $150. What

In a balanced transportation model, supply equals demand such that all constraints can be treated as equalities. Answer: TRUE Answer: TRUE Answer: TRUE In a transportation problem, a demand constraint (the amount of product demanded at a given destination) is a less-than-or equal-to constraint (). Answer: FALSE Answer: FALSE Answer: FALSE Dependent demand items are final