1) There are three categories of simulation models: Monte Carlo, operational gaming,
and systems simulation.
2) A PERT/CPM network is a graphical display of a project that connects activities.
3) Both dynamic programming and linear programming take a multi-stage approach to
solving problems.
4) The constraint , when converted to an = constraint for use in the
simplex algorithm, will be .
5) The maximal-flow model might be of use to an engineer looking for spare capacity
in an oil pipeline system.
6) When absorbing states exist, the fundamental matrix is used to compute equilibrium
conditions.
7) The linear programming transportation model allows us to solve problems where
supply does not equal demand.
8) When establishing a probability distribution based on historical outcomes, the
relative frequency for each possible outcome of a variable is found by dividing the
frequency of each outcome by the total number of observations.
9) In general, linear programming is unable to solve complex labor planning as the
objective function is usually not definable.
10) Assume you have a normal distribution representing the likelihood of completion
times. The mean of this distribution is 10, and the standard deviation is 3. The
probability of completing the project in 8 or fewer days is the same as the probability of
completing the project in 18 days or more.
11) Regression is always a superior forecasting method to exponential smoothing, so
regression should be used whenever the appropriate software is available.
12) When computing Z for a break-even analysis: as increases, Z decreases.
13) The three types of integer programs are: pure integer programming, impure integer
programming, and 0-1 integer programming.
14) Using the additive decomposition model, what would be the period 2, Q3 forecast
using the following equation: = 20 + 3.2X1 + 1.5X2 + 0.8X3 + 0.6X4?
A) 23.2
B) 25
C) 27
D) 27.2
E) 27.9
15) A state probability when equilibrium has been reached is called
A) state probability.
B) prior probability.
C) steady state probability.
D) joint probability.
E) transition probability.
16) An n x m matrix when added to a p x m matrix (p < m), yields
A) an n x m matrix.
B) an n x p matrix.
C) an m x p matrix.
D) an m x m matrix.
E) None of the above
17) Table 11-2
The following represents a project with four activities. All times are in weeks.
According to Table 11-2, there are four activities in the project. Assume the normal
distribution is appropriate to use to determine the probability of finishing by a particular
time. What is the probability that the project is finished in 16 weeks or fewer? (Round
to two decimals.)
A) 0.07
B) 0.93
C) 0.43
D) 0.77
E) None of the above
18) Shown below is a consistency vector from an Analytic Hierarchy Process analysis.
2.6895
2.5555
2.7985
2.6105
Compute ».
A) Not enough information is given to compute »
B) 2.7985
C) 2.6000
D) 10.6540
E) 2.6635
19) Table 12-1
According to the information provided in Table 12-1, on average, how many units are in
the line?
A) 1.646
B) 0.563
C) 0.280
D) 1.125
E) 0.521
20) Element 2,1 of the inverse of the matrix is
A) -5.
B) -4.
C) 3.
D) 7.
E) None of the above
21) Table 15-1
Refer to Table 15-1. To guarantee that cans of soup are properly filled, some cans are
sampled and the amounts measured. The overall average for the samples is 12 ounces.
Each sample contains 10 cans. The average range is 0.4 ounces. The upper control chart
limit for the sample averages would be
A) 12.1232.
B) 11.8768.
C) 13.2.
D) 12.308.
E) None of the above
22) 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. If
R. C. wishes to minimize his total annual inventory costs, he must evaluate the total
cost for two possible order quantities. What are these two possible quantities? (Round
answer to nearest unit.)
A) 300 and 306
B) 300 and 500
C) 306 and 50
D) 200 and 306
E) None of the above
23)
A)
B)
C)
D)
E) None of the above
24) Define what a matrix transpose is.
25) If two events (A,B) are mutually exclusive, what is the probability of event A or
event B occurring?
26) ________ are graphs that show upper and lower limits for the process we want to
control.
27) The following is a partial simplex tableau for a maximization problem after one
iteration. Fill out the rest of this tableau, and then develop the next simplex tableau.
28) If D = 0.75, s = 500, K = 6, and the selling price/unit = 5, determine EOL.
29) Explain, briefly, why the larger number of periods included in a moving average
forecast, the less well the forecast identifies rapid changes in the variable of interest.
30) ( Due to the high prices of components from nonroutine suppliers, management
wants to minimize the purchase of additional materials.
Given the above additional information, set this up as a goal programming problem.
d3
+ = additional amount of components needed
31) Consider a product mix problem, where the decision involves determining the
optimal production levels for products X and Y. A unit of X requires 4 hours of labor in
department 1 and 6 hours of labor in department 2. A unit of Y requires 3 hours of labor
in department 1 and 8 hours of labor in department 2. Currently, 1000 hours of labor
time are available in department 1, and 1200 hours of labor time are available in
department 2. Furthermore, 400 additional hours of cross-trained workers are available
to assign to either department (or split between both). Each unit of X sold returns a $50
profit, while each unit of Y sold returns a $60 profit. All units produced can be sold.
Formulate this problem as a linear program. (Hint: Consider introducing other decision
variables in addition to the production amounts for X and Y.)
32) Four projects must be completed, and each of four employees will be assigned to
work on exactly one of the four projects. The table below presents an estimate of the
cost that each employee would incur if working on the respective projects. What is the
minimum-cost assignment of workers to projects?
