1) Consider the tasks, durations, and predecessor relationships in the following
network. Draw the network and answer the questions that follow.
(a) What is the expected duration of the project?
(b) What is the probability of completion of the project before week 42?
2) Find the shortest route from Node 1 to Node 4.
A) 750
B) 500
C) 550
D) 600
E) 50
3) In Markov analysis, the fundamental matrix
A) is necessary to find the equilibrium condition when there are absorbing states.
B) can be found but requires, in part, partitioning of the matrix of transition
probabilities.
C) is equal to the inverse of the I minus B matrix.
D) is multiplied by the A matrix in order to find the probabilities that amounts in
non-absorbing states will end up in absorbing states.
E) All of the above
4) At a university with 1,000 business majors, there are 200 business students enrolled
in an introductory statistics course. Of these 200 students, 50 are also enrolled in an
introductory accounting course. There are an additional 250 business students enrolled
in accounting but not enrolled in statistics. If a business student is selected at random
and found to be enrolled in statistics, what is the probability that the student is also
enrolled in accounting?
A) 0.05
B) 0.30
C) 0.20
D) 0.25
E) None of the above
5) Expressing profits through the relationship among unit price, fixed costs, and
variable costs is an example of
A) a sensitivity analysis model.
B) a quantitative analysis model.
C) a postoptimality relationship.
D) a parameter specification model.
E) None of the above
6) R. C. Barker makes purchasing decisions for his company. One product that he buys
costs $50 per unit when the order quantity is less than 500. When the quantity ordered
is 500 or more, the price per unit drops to $48. The ordering cost is $30 per order and
the annual demand is 7,500 units. The holding cost is 10 percent of the purchase cost.
How many units should R. C. order to minimize his total annual inventory cost? (Round
your answer to the nearest unit.)
A) 300
B) 306
C) 500
D) 200
E) None of the above
7) A model containing a linear objective function and requiring that one or more of the
decision variables take on an integer value in the final solution is called
A) an integer programming problem.
B) a goal programming problem.
C) a nonlinear programming problem.
D) a multiple objective LP problem.
E) insufficient information.
8) Table 11-4
The following represents a project with known activity times. All times are in weeks.
Using the data in Table 11-4, what is the minimum possible time required for
completing the project?
A) 8
B) 12
C) 18
D) 10
E) None of the above
9) A plant manager considers the operational cost per hour of five machine alternatives.
The cost per hour is sensitive to three potential weather conditions: cold, mild, and
warm. The following table represents the operations cost per hour for each
alternative-state of nature combination:
Assume that for a randomly selected day, there is a 30% probability of cold weather,
50% probability of mild weather, and 20% probability of warm weather. What is the
EVPI?
A) $5.8
B) $6.6
C) $1.6
D) $3.2
E) $7.4
10) Judith Thompson is the manager of the student center cafeteria. She is introducing
pizza as a menu item. The pizza is ordered frozen from a local pizza establishment and
baked at the cafeteria. Judith anticipates a weekly demand of 10 pizzas. The cafeteria is
open 45 weeks a year, 5 days a week. The ordering cost is $15 and the holding cost is
$0.40 per pizza per year. What is the optimal number of pizzas Judith should order?
A) 184 pizzas
B) 9 pizzas
C) 5 pizzas
D) 28 pizzas
E) None of the above
11) Neki Sports Company manufactures treadmills in factories located in Pittsburgh and
Kansas City. These are shipped to regional distribution centers in Chicago, Phoenix,
and Philadelphia. Ultimately they are delivered to supply houses in New York and Los
Angeles. The available supplies at the factories, demands at the final destinations, and
shipping costs are illustrated in the table below.
Determine how many units should be shipped for all possible origin and destination
points (final or intermediate) in the distribution network in order to minimize shipping
costs.
12) When using the shortest-route technique, the second step is to
A) find the next-nearest node to the origin and put the distance in a box by the node.
B) trace the path from the warehouse to the plant.
C) determine the average distance traveled from source to end.
D) find the nearest node to the origin and put a distance box by the node.
E) None of the above
13) Pipeline fluid flows are indicated below. Determine the maximum flow from Node
1 to Node 4.
A) 100
B) 150
C) 200
D) 50
E) None of the above