BUS 21098 | Course Paper

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Validation of a simulation model occurs when the true steady state average results have

been reached.

Branches connect nodes and show flow from one point to another.

A key element of a decision support system (DSS) is the person using the system.

Management science modeling techniques provide results that are known with certainty.

A feasible solution is ensured by rounding down non-integer solution values.

A goal can be achieved at the expense of another lower-priority goal.

In a game situation, it is assumed that the payoff table is known to all players.

On a preference scale for pairwise comparisons, the number “1” indicates that two

objects are equally preferred.

A traffic system could be represented as a network in order to determine bottlenecks

using the maximal flow network algorithm.

A succession of events that does not affect other events is independent.

In a transportation problem, items are allocated from sources to destinations at a

minimum cost.

In the graphical approach, simultaneous equations may be used to solve for the optimal

solution point.

Qualitative methods use management judgment, expertise, and opinion to make

forecasts.

In a minimal spanning tree, the source and destination nodes must be connected along a

single path.

In a mixed strategy game, players switch decision in response to the other player.

The slope of a curve at any point is equal to the derivative of the curves function.

When using a linear programming model to solve the diet problem, the objective is

generally to maximize profit.

A cycle is an up-or-down movement in demand that repeats itself in less than 1 year.

Data cannot exhibit both trend and cyclical patterns.

If we are solving a 0-1 integer programming problem, the constraint x1 = x2 is a

conditional constraint.

Linear programming is a model consisting of linear relationships representing a firm’s

decisions given an objective and resource constraints.

In the method of Lagrange multipliers, constraints as multiples of a multiplier are

subtracted from the objective function, which is then differentiated with respect to each

variable and solved.

The calling population is the source of customers.

In a continuous inventory system, a constant amount is ordered when inventory declines

to a predetermined level.

A basic feasible solution satisfies the model constraints and has the same number of

variables with negative values as there are constraints.

Rounding non-integer solution values up to the nearest integer value can result in an

infeasible solution to an integer programming problem.

A linear programming model solution with integer restrictions is called a relaxed

solution.

If average forecast error is positive, it indicates that the forecast is biased high.

A car wash with two attendants who work together as a team would be an example of a

multiple-server system.

The Lagrange multiplier at the optimum gives only the instantaneous rate of change in

the objective value.

The term ________ refers to testing how a problem solution reacts to changes in one or

more of the model parameters.

A) graphical solution

B) decision analysis

C) sensitivity analysis

D) break-even analysis

The Hurwicz criterion multiplies the:

A) best payoff by the coefficient of optimism.

B) worst payoff by the coefficient of optimism.

C) best payoff by the worst payoff.

D) none of the above

The manager of the Quick Stop Corner convenience store (which is open 360 days per

year) sells four cases of Stein soda each day (1440 cases per year). Order costs are

$8.00 per order. The lead time for an order is three days. Annual holding costs are equal

to $57.60 per case.If the manager orders 16 cases each time she places an order, how

many orders would she place in a year?

A) 22.5

B) 50

C) 72

D) 90

The derivative of a function ________ the slope of the curve defined by that function.

A) is larger than

B) equals

C) is smaller than

D) is similar to

Kushie’s Coffee in Bangalore is a quaint establishment nestled near MG Road in the

central business district. It serves coffee and fruit cake to a clientele that has been

enjoying these products for over fifty years. The demand for coffee beans is 6600 cases

per year (each case has 24 ten-pound bags). It would be disastrous for them to run out

of coffee, so they keep a safety stock of 30 cases. The cases cost $4800 and it costs $5

per case to order coffee. As coffee is a perishable product, the holding cost is fairly high

at $40/case/year. The lead time to receive an order is seven days. Kushie’s is open 300

days a year.

How many orders per year do they place if they order at double their EOQ quantity?

A) 40.6

B) 81.2

C) 162.5

D) 325

In synthesization, dividing each value in each column of the pairwise comparison

matrix by the corresponding column sum, we obtain the ________ matrix.

A) pairwise

B) normalized

C) preference

D) criteria

The activities that must be completed prior to the start of an activity in question are

called the immediate ________ of the activity in question.

A) successors

B) predecessors

C) successors and predecessors

D) followers

The Wiethoff Company has a contract to produce 10,000 garden hoses for a customer.

Wiethoff has four different machines that can produce this kind of hose. Because these

machines are from different manufacturers and use differing technologies, their

specifications are not the same and not all four machines have to be used to produce all

of the garden hoses.

Write a constraint to ensure that if machine 4 is used, machine 1 will not be used.

A) y1 + y4 ≤ 0

B) y1 + y4 ≥ 1

C) y1 + y4 ≤ 1

D) y1 – y4 ≤ 1

E) y1 – y4 ≤ 0

After plowing through contracts for a decade, the contract writer knew about how long

it took to crank out the material necessary to satisfy a contract’s requirements. The

distribution could be modeled using the data provided in this table.

Using the random number table 14.3 in your text, column 1, reading across row 1, what

is the standard deviation of the average length of the next five contracts?

A) 1

B) 0

C) 1.414

D) 5

Under the normal curve, the area between z = 2 and z = -2 includes ________ of the

values.

A) 98%

B) 96%

C) 95%

D) 93%

Which one of the following techniques is not a mathematical programming technique?

A) linear programming models

B) transportation models

C) analytical hierarchy process

D) integer linear programming technique

The interval labeled “E” in the diagram is:

A) production cycle.

B) production run length.

C) shipping lead time.

D) inventory fill rate.

What is the 95% confidence interval width for a sample with a mean of 50 and a

standard deviation of 14 based on 75 observations?

A) (44.13, 55.87)

B) (46.83, 53.17)

C) (40.67, 59.32)

D) (48.22, 51.78)

Zevon Enterprises

Zevon Enterprises provides services for clients worldwide and to protect all parties to

this course as well as Zevon, we shall refer to those services as X1, X2, and X3. Each of

these services has its own special mix of needs for the resources the company has at its

disposal. The X1 product requires three lawyers, seven guns, and $6,000; the X2

product requires two lawyers, five guns, and $4,000; and the X3 product requires four

lawyers, six guns, and $7,000. Zevon has access to 5,000 lawyers, 10,000 guns, and

$15,000,000. For ease of conversation, Zevon employees usually speak about dollars as

“per thousand” so one of them asking for $7 means that they really need $7,000.

Zevon’s demand is variable depending on what they charge for it. For example, the X1

product’s demand is 200 – 2.25p1. The demand for X2 is 300 – 3p2, and the demand for

X3 is 400 – 3.5p3. The per unit profit forX1 through X3 can be calculated by subtracting

the per unit cost from the sales price, so for X1, the profit is p1 – 25, for X2 the profit is

p2– 3, and for X3 the profit is p3– 3.5.

The model is entered in Excel and executes to reveal that p2 equals $51.50. Which of

these conclusions is correct?

A) The contribution to net profit from service X2 is $7,056.75.

B) The per unit profit for service X2 is $51.50.

C) There is excess demand for service X1.

D) The demand for X2 is 194.

In Bayesian analysis, additional information is used to alter the ________ probability of

the occurrence of an event.

A) marginal

B) conditional

C) binomial

D) revised

In the simplex procedure, if all cj– zj ≤ 0 and one or more of the basic variables are

artificial, this indicates that:

A) the solution is infeasible.

B) the solution is unbounded.

C) there are multiple optimal solutions.

D) the formulation is incorrect.

________ use management judgment, expertise, and opinion to make forecasts.

A) Qualitative methods

B) Regression

C) Time series

D) Quantitative methods

Consider the following maximization problem.

MAX z = x + 2y

s.t.

2x + 3y ≤ 6

5x + 6y ≤ 30

y ≥ 1

The optimal solution:

A) occurs where x = 4.67 and y = 1.11.

B) occurs where x = 0 and y = 2.

C) occurs where x = 6 and y = 0.

D) results in an objective function value of 12.

The weight of a jar of jelly is normally distributed with a mean of 16 oz and a standard

deviation of 0.02 oz. What is the probability that a jar of jelly contains more than 16.03

oz?

A) .0668

B) .1587

C) .4332

D) .9332

________ techniques assume that no uncertainty exists in model parameters.

A) Probability

B) Probabilistic

C) Deterministic

D) Distribution

In a pairwise comparison matrix the diagonal values will ________ equal ________.

A) sometimes, 1

B) always, 0

C) sometimes, 0

D) always, 1

A ________ probability is the probability that an event will occur given that another

event has already occurred.

A) posterior

B) conditional

C) marginal

D) low

Kushie’s Coffee in Bangalore is a quaint establishment nestled near MG Road in the

central business district. It serves coffee and fruit cake to a clientele that has been

enjoying these products for over fifty years. The demand for coffee beans is 6600 cases

per year (each case has 24 ten-pound bags). It would be disastrous for them to run out

of coffee, so they keep a safety stock of 30 cases. The cases cost $4800 and it costs $5

per case to order coffee. As coffee is a perishable product, the holding cost is fairly high

at $40/case/year. The lead time to receive an order is seven days. Kushie’s is open 300

days a year.

What is their reorder point if they order at twice their EOQ?

A) 46 cases

B) 92 cases

C) 184 cases

D) 368 cases

Armed only with his fingers, the owner decides that the safest forecasting approach is a

linear trend line. Generate a forecast for the year using this technique and then calculate

forecast errors using MAPD. What is the mean absolute deviation for this forecasting

approach?

A) 3.33%

B) 2.17%

C) 2.82%

D) 4.29%

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 day. How many production

runs per year will the Swizzo 2025 be producing if they produce the optimal batch size?

A) 8

B) 2

C) 6

D) 9

Zevon Enterprises

Zevon Enterprises provides services for clients worldwide and to protect all parties to

this course as well as Zevon, we shall refer to those services as X1, X2, and X3. Each of

these services has its own special mix of needs for the resources the company has at its

disposal. The X1 product requires three lawyers, seven guns, and $6,000; the X2