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1) The Department of Motor Vehicles (DMV) can service customers at a rate of 20 per
hour (or 1/3 per minute) when it comes to license renewals. The service time follows an
exponential distribution. What is the probability that it will take less than 3 minutes for
a particular customer to get a license renewal?
A) 0.5
B) 0
C) 1
D) 0.368
E) 0.632
2) The selection of specific investments from among a wide variety of alternatives is the
type of LP problem known as
A) the product mix problem.
B) the investment banker problem.
C) the Wall Street problem.
D) the portfolio selection problem.
E) None of the above
3) If one changes a nonbasic objective function coefficient, the optimal solution of a
maximization problem will remain optimal if
A) the increase in the coefficient does not exceed the value of the Zj associated with
that nonbasic variable.
B) the increase in the coefficient does not exceed the values of the Zj's of every basic
variable.
C) the decrease in the coefficient does not exceed the value of the Zj associated with the
nonbasic variable.
D) the new Cj - Zj associated with the nonbasic variable remains positive.
E) None of the above
4) In making inventory decisions, the purpose of the basic EOQ model is to
A) minimize carrying costs.
B) minimize ordering costs.
C) minimize the sum of carrying costs and ordering costs.
D) minimize customer dissatisfaction.
E) minimize stock on hand.
5) Table 13-3
A pharmacy is considering hiring another pharmacist to better serve customers. To help
analyze this situation, records are kept to determine how many customers will arrive in
any 10-minute interval. Based on 100 ten-minute intervals, the following probability
distribution has been developed and random numbers assigned to each event.
According to Table 13-3, the number of arrivals in any 10-minute period is between 6
and 10, inclusive. Suppose the next three random numbers were 20, 50, and 79, and
these were used to simulate arrivals in the next three 10-minute intervals. How many
customers would have arrived during this 30-minute time period?
A) 18
B) 19
C) 20
D) 21
E) None of the above
6) The annual demand for a product has been projected at 2,000 units. This demand is
assumed to be constant throughout the year. The ordering cost is $20 per order, and the
holding cost is 20 percent of the purchase cost. The purchase cost is $40 per unit. There
are 250 working days per year. Whenever an order is placed, it is known that the entire
order will arrive on a truck in 6 days. Currently, the company is ordering 500 units each
time an order is placed. What level of safety stock would give a reorder point of 60
units?
A) 10
B) 14
C) 18
D) 12
E) 22
7) Infeasibility in a linear programming problem occurs when
A) there is an infinite solution.
B) a constraint is redundant.
C) more than one solution is optimal.
D) the feasible region is unbounded.
E) there is no solution that satisfies all the constraints given.
8) According to Table 8-1, which describes a production problem, which of the
following would be a necessary constraint in the problem?
A) T + C =< 40
B) T + C =< 200
C) T + C =< 180
D) 120T + 80C >=1000
E) None of the above
9) When waiting time is based on time in the queue, which of the following is the
correct equation for total cost?
A) mCs + »WCw
B) mCw + »WCs
C) mCs + »WqCs
D) mCs + »WqCw
E) mCw + »WqCs
10) Which of the following problems can be solved as a linear program using binary
decision variables?
A) maximal-flow problem
B) shortest-route problem
C) minimal-spanning tree problem
D) A and B
E) A, B, and C
11) The school of business has 3 fax machines. The toner in each machine needs to be
changed after about 5 hours of use. There is one unit secretary who is responsible for
the fax machine maintenance. It takes him 15 minutes to replace the toner cartridge.
What is the probability that 2 fax machines need toner at the same time?
A) .8576
B) .1286
C) .0129
D) .1415
E) None of the above
12) Table 11-1
The following represents a project with known activity times. All times are in weeks.
According to Table 11-1, compute the slack time for activity D.
A) 0
B) 5
C) 3
D) 6
E) None of the above
13) 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 you realize that
you can trade off assembly hours for finishing hours, but that the total number of
finishing hours, including the trade-off hours, cannot exceed 240 hours. How would this
constraint be written?
A) 7T + 5C =< 360
B) 3T + 2C =< 240
C) 4T + 3C =< 140
D) T C =< 80
E) None of the above
14) Given the following small project, the critical path is ________ days.
A) 10
B) 14
C) 16
D) 20
E) None of the above
15) Consider the following general form of a linear programming problem:
The shadow price for S1 is 25, for S2 is 0, and for S3 is 40. If the right-hand side of
constraint 3 were changed from 150 to 151, what would happen to maximum possible
profit?
A) It would not change.
B) It would increase by 25.
C) It would decrease by 25.
D) It would increase by 40.
E) It would decrease by 40.
16) Table M2-1
The data below is a dynamic programming solution for a shortest route problem.
Using the data in Table M2-1, determine the distance of stage 1 for the optimal route.
A) 0
B) 8
C) 12
D) 16
E) 24
