1) A solution to the transportation problem can become degenerate at any iteration.
2) Inventory is any stored resource that is used to satisfy a current or future need.
3) In a competitive business market, one company’s strategy might be to minimize its
potential losses.
4) The vector of state probabilities for any period is equal to the vector of state
probabilities for the preceding period multiplied by the matrix of transition
probabilities.
5) In multifactor decision making, individuals quantitatively and objectively consider
the various factors in making their decisions.
6) A scatter diagram is useful to determine if a relationship exists between two
variables.
7) For any absorbing state, the probability that a state will remain unchanged in the
future is one.
8) A transient state is the normal operating condition of the queuing system.
9) Interviews, statistical sampling, and company reports provide input data for
quantitative analysis models.
10) Given the following distribution:
The expected value is 3.
11) The corner point solution method
A) will always provide one, and only one, optimum.
B) will yield different results from the isoprofit line solution method.
C) requires that the profit from all corners of the feasible region be compared.
D) requires that all corners created by all constraints be compared.
E) will not provide a solution at an intersection or corner where a non-negativity
constraint is involved.
12) Little’s Flow Equations are transferable to a production environment. Which of the
following would be a proper interpretation of Little’s Flow Equations?
A) Flow Rate = Inventory Flow Time
B) Flow Time = Inventory Flow Rate
C) Inventory = Flow Rate Flow Time
D) Time to Take an Order = Flow Rate Flow Time
E) Flow Rate = Time to Take an Order Flow Time
13) Which of the following functions is nonlinear?
A) 4X + 2Y + 7Z
B) -4X + 2Y
C) 4X + (1/2)Y + 7Z
D) Z
E) 4X/Y + 7Z
14) ( Use all of the product B available.
Let X1 = number of Zigs, X2 = number of Zags.
d1
– = underachievement of Zig goal
d1
+ = overachievement of Zig goal
d2
– = underachievement of profit target
d2
+ = overachievement of profit target
d3
– = unused product B
d3
+ = additional amount of product B needed
In the goal programming problem described in Table 10-7, how is the goal of the use of
all product B available expressed?
A) 15X1 + 30X2 + d3
– – d3
+ = 3200
B) X1 + X2 + d3
– – d3
+ = 3200
C) X1 + X2 + d3
– = 3200
D) 15X1 + 30X2 + d3
– = 3200
E) 15X1 + 3-X2 – d3
+ = 3200
15) Assume that we are using a waiting line model to analyze the number of service
technicians required to maintain machines in a factory. Our goal should be to
A) maximize productivity of the technicians.
B) minimize the number of machines needing repair.
C) minimize the downtime for individual machines.
D) minimize the percent of idle time of the technicians.
E) minimize the total cost (cost of maintenance plus cost of downtime).
16) List four components of TIME SERIES data.
17) indicate changes in
A) variation.
B) central tendency.
C) natural variations.
D) numbers of defects.
E) None of the above
18) There are seven cities (City 1-City 7) served by Acme Trucking. Route availability
is limited. The distances, in hundreds of miles, are given in the table below for each
route.
If the truck were required to take the route from City 4 to City 5, what would be the
shortest distance from City 1 to City 7?
A) 2900 miles
B) 3200 miles
C) 3700 miles
D) 3400 miles
E) None of the above
19) Table 8-7
Ivana Myrocle wishes to invest her inheritance of $200,000 so that her return on
investment is maximized, but she also wishes to keep her risk level relatively low. She
has decided to invest her money in any of three possible ways: CDs, which pay a
guaranteed 6 percent; stocks, which have an expected return of 13 percent; and a money
market mutual fund, which is expected to return 8 percent. She has decided that any or
all of the $200,000 may be invested, but any part (or all) of it may be put in any of the 3
alternatives. Thus, she may have some money invested in all three alternatives. In
formulating this as a linear programming problem, define the variables as follows:
C = dollars invested in CDs
S = dollars invested in stocks
M = dollars invested in the money market mutual fund
According to Table 8-7, which describes an investment problem, suppose that Ivana has
assigned the following risk factors to each investment instrument CDs (C): 1.2; stocks
(S): 4.8; money market mutual fund (M): 3.2. If Ivana decides that she wants the risk
factor for the whole investment to be less than 3.3, how should the necessary constraint
be written?
A) 1.2C + 4.8S + 3.2M =< 3.3
B) C + S + M =< 3.3
C) 1.2C + 4.8S + 3.2M =< 3.3(C + S + M)
D) (1.2C + 4.8S + 3.2M)/3 =< 3.3
E) S = 0
20) Suppose a linear programming (maximization) problem has been solved and the
optimal value of the objective function is $300. Suppose a constraint is removed from
this problem. Explain how this might affect each of the following:
(a) the feasible region.
(b) the optimal value of the objective function.
21) Which of the following statements is FALSE regarding control charts?
A) X-bar charts measure central tendency in a process.
B) R-charts measure the variability of a process.
C) It is not possible to have a LCL below 0 in a c-chart.
D) It is not possible to have a UCL value above 1 in a p-chart.
E) The nominal line is always the midpoint between the UCL and LCL.
22) Table 11-2
The following represents a project with four activities. All times are in weeks.
According to the data in Table 11-2, what is the critical path?
A) A-B
B) A-C
C) B-D
D) A-B-C-D
E) None of the above
23) Table 8-4
A small furniture manufacturer produces tables and chairs. Each product must go
through three stages of the manufacturing process: assembly, finishing, and inspection.
Each table requires 4 hours of assembly, 3 hours of finishing, and 1 hour of inspection.
Each chair requires 3 hours of assembly, 2 hours of finishing, and 2 hours of inspection.
The selling price per table is $140 while the selling price per chair is $90. Currently,
each week there are 220 hours of assembly time available, 160 hours of finishing time,
and 45 hours of inspection time. Assume that one hour of assembly time costs $5.00;
one hour of finishing time costs $6.00; one hour of inspection time costs $4.50; and that
whatever labor hours are not required for the table and chairs can be applied to another
product. Linear programming is to be used to develop a production schedule. Define the
variables as follows:
T = number of tables produced each week
C = number of chairs produced each week
According to Table 8-4, which describes a production problem, suppose it was decided
that all the labor hour costs have to be covered through the sale of the tables and chairs,
regardless of whether or not all the labor hours are actually used. How would the
objective function be written?
A) maximize 140T + 90C
B) minimize 140T + 90C
C) maximize 97.5T + 54C
D) maximize T + C
E) maximize 140T + 90C – 1100(T + C) – 960(T + C) – 202.5(T + C)
24)
A)
B)
C) [0]
D)
E) None of the above
25) ( Use all of the product B available.
Let X1 = number of Zigs, X2 = number of Zags.
d1
– = underachievement of Zig goal
d1
+ = overachievement of Zig goal
d2
– = underachievement of profit target
d2
+ = overachievement of profit target
d3
– = unused product B
d3
+ = additional amount of product B needed
In the goal programming problem described in Table 10-7, how is the goal of achieving
a target profit of at least $750 expressed?
A) X1 + X2 + d2
– = 750
B) X1 + X2 + d2
– – d2
+ = 750
C) 4X1 +6 X2 + d2
– = 750
D) 4X1 + 6X2 + d2
– – d2
+ = 750
E) X1 + X2 – d2
+ = 750
26) Given the pipeline fluid flows indicated below, determine the maximum flow from
Node 1 to Node 5.
A) 250
B) 300
C) 350
D) 450
E) None of the above
27) CleanClothes dry cleaners is opening a pick-up and delivery service. There is only
one other dry cleaner that currently offers this service. To advertise, CleanClothes is
considering either newspaper ads or attaching flyers to the doors of many local homes.
The payoff for each of CleanClothes’ potential strategies is given in the table below.
What is the saddle point, if any, of this game?
A) 37
B) 17
C) 16
D) 8
E) There is no saddle point
28) The time between arrivals at a drive-through window of a fast-food restaurant
follows the distribution given below. The service time distribution is also given in the
table below. Use the random numbers provided to simulate the activity of the first five
arrivals. Assume that the window opens at 11:00 a.m. and the first arrival after this is
based on the first interarrival time generated.
Random numbers for arrivals: 14, 74, 27, 03
Random numbers for service times: 88, 32, 36, 24
What times does the fourth customer leave the system?
29) A seasonal index of ________ indicates that the season is average.
A) 10
B) 100
C) 0.5
D) 0
E) 1
30) In general terms, describe what causal forecasting models are.
31) How can an analyst overcome the threats to successful implementation of a
quantitative model?
32) What are the five uses of inventory?
33) Explain how a multiple optimal solution is recognized when using the simplex
algorithm.
34) A retail store charts the number of customer returns per day. Under normal
conditions, the store expects 10 customer returns per day. During the past 10 days, the
observed customer returns were as follows: 12, 9, 8, 14, 8, 13, 8, 10, 9, 11. Using 99.7%
control limits, is the process under control?
35) Define alternate optimal solutions with respect to an LP solution.
36) CPM is the acronym for what?
37) Given the following initial pairwise comparison matrix, determine the consistency
ratio.
38) Define deviational variables.
39) List the parameter(s) of the Poisson distribution.