Which of the following would be considered as an example of a proportional
relationships constraint?
A) making certain that only a certain amount of units are produced
B) guaranteeing that a certain amount of workforce will be available for a certain month
C) balancing the input to the output during production
D) ensuring that the budget allocated to marketing is thrice that of research and
development
Remington Textiles has a mill that produces three types of fabrics on a make-to-order
basis. The mill operates on a 24/7 basis. The key decision facing the plant manager is
about the type of loom needed to process each fabric during the coming 12 weeks to
meet demands for the three fabrics and not exceed the capacity of the looms in the mill.
Two types of looms are used: Jaquard and Northrop. Jaquard looms can be used to
make all fabrics and are the only looms that can weave certain fabrics, such as plaids.
Demands, variable costs for each fabric, and production rates on the looms are given in
the table below. The mill has 10 Northrop looms and 2 Jaquard looms. Any fabrics that
cannot be woven in the mill because of limited capacity will be purchased from an
external supplier, finished at the mill, and sold at the selling price. In addition to
determining which looms to use to process the fabrics, the manager also needs to
determine which fabrics to buy externally.
According to the model, what is the total amount of Fabric 3 to be purchased?
A) 2,405
B) 0
C) 32,595
D) 35,000
What should be the value of Integer Tolerance in order to find the guaranteed optimal
integer solution?
A) -1
B) 0
C) 0.5
D) 1
Which of the following formulas are used to calculate the In-house recording cost?
A) B10*B12
B) B10*B12-B17
C) B6+B10*B12
D) =SUM(B6:B12)-B7
Below is the spreadsheet for a project selection model.
Answer the following question(s) using a model with uncertainty on project selection.
Assume that the distribution on each project return is LogNormal. Use 10,000 trials and
1 for random seed for the simulation.
What is the value of mean obtained from the simulation results? [Hint: Choose the
approximate value.]
A) $ 405,897
B) $ 358,138
C) $ 269,406
D) $ 452,785
Below is the spreadsheet for a project selection model:
What is the total amount of cash used for all five projects?
A) $ 175,000
B) $ 163,000
C) $ 215,000
D) $ 260,000
Stone Age Surfboards is a small manufacturer of two types of popular low-tide
surfboards, the Graystone and the Lava models. The manufacturing process consists of
two departments: fabrication and finishing. The fabrication department has 8 skilled
workers, each of whom works 9.25 hours per day. The finishing department has 5
workers, each of whom works a 6 -hour shift per day. Each pair of Graystone
surfboards requires 2.5 labor hours in the fabrication department and 2 labor hours in
finishing. The Lava model requires 4.2 labor-hours in fabrication and 3.6 labor-hours in
finishing. The company operates 6 days a week. It makes a per unit profit of $40 on the
Graystone model and $60 on the Lava model. The company anticipates selling at least
twice as many Lava models as Graystone models.
If the unit profit on Graystone surfboards is increased by $10, what is the shadow price
for the finishing hours used?
A) $18.48
B) $17.39
C) $15.42
D) $14.15
Latin Hypercube sampling differs from Monte Carlo sampling in that the Latin
Hypercube sampling ________.
A) selects random variates independently over the entire range of possible values of the
distribution
B) uses an uncertain variable whose probability distribution is divided into intervals of
equal probability
C) is used for evaluating the model performance under various what-if scenarios
D) achieves less accurate forecast statistics for a fixed number of trials
Pickson Luthiers Corporation is studying where to locate a phone charging point on the
factory floor. The locations of five production cells are expressed as X– and
Y-coordinates on a rectangular grid of the factory layout. The daily demand for the
charging point (measured as the number of trips to the charging point) at each
production cell is also known. Because of the nature of the equipment layout in the
factory and for safety reasons, workers must travel along marked horizontal and vertical
aisles to access the charger. Thus, the distance from a cell to the charger is measured as
rectilinear distance.
The table below provides the relevant information.
The optimal location should minimize the total weighted distance between the charging
point and all production cells, where the weights are the daily number of trips to the
phone charging point.According to the model, which of the following is the weighted
distance between the phone charger and Testing cell?
A) 7.00
B) 17.50
C) 22.50
D) 27.50
Which of the following is true about the value of the power of the test?
A) low value will enable valid conclusions to be made
B) small sample sizes generate a low value of the power of the test
C) low value will help in detecting small differences in sample statistics
D) small sample sizes incur higher costs than large sample sizes
Which of the following tests is used to determine if two categorical variables are
independent?
A) Chi-square test
B) t-test
C) z-test
D) ANOVA
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails,
rivets, and clips-which are machined on two CNC machining centers. The machining
centers have a capacity of 250,000 minutes per year. The gross margin per unit and
machining requirements are shown in the spreadsheet below.
When a model has a unique optimal solution, it means that ________.
A) the objective is maximized or minimized by more than one combination of decision
variables
B) there is no solution that simultaneously satisfies all the constraints
C) the Allowable Increase or Allowable Decrease values for changing cells are zero
D) there is exactly one solution that will result in the maximum or minimum objective
The Delphi method used for forecasting:
A) obtains forecasts through a comparative analysis with a previous situation.
B) uses measures that are believed to influence the behavior of a variable that the
researcher wishes to forecast.
C) uses a single measure that weights multiple indicators and provides a measure of
overall expectation.
D) uses a panel of experts, whose identities are typically kept confidential from one
another, to respond to a sequence of questionnaires.
Following is an extract from the Employee Payroll Database of HFR Informatics Inc.
What is the cumulative relative frequency of employees on a ‘A to D’ pay scale?
A) 1.00
B) 0.80
C) 0.30
D) 0.60
Decision variables:
A) cannot be directly controlled by the decision maker.
B) are assumed to be constant.
C) are always uncertain.
D) can be selected at the discretion of the decision maker.