1) Extra inventory that is used to avoid stockouts is known as
A) planned shortages.
B) quantity discounts.
C) safety stock.
D) service level.
E) ABC analysis.
2) Bags of pretzels are sampled to ensure proper weight. The overall average for the
samples is 9 ounces. Each sample contains 25 bags. The standard deviation is estimated
to be 3 ounces. The upper control chart limit (for 99.7% confidence) for the average
would be ________ ounces.
A) 9.4
B) 18.0
C) 10.2
D) 7.2
E) 10.8
3) Table M7-3
According to Table M7-3, which is the final simplex tableau for a problem with two
variables and two constraints, what is the maximum possible profit (objective function
value) for this problem?
A) 20
B) 40
C) 800
D) 26.667
E) None of the above
4) The critical path of a network is the
A) path with the least variance.
B) path with zero slack.
C) path with the most activities.
D) path with the largest variance.
E) None of the above
5) The equation P(A|B) = P(AB)/P(B) is
A) the marginal probability.
B) the formula for a conditional probability.
C) the formula for a joint probability.
D) only relevant when events A and B are collectively exhaustive.
E) None of the above
6) Simulation can be effectively used in many
A) inventory problems.
B) plant layout problems.
C) maintenance policy problems.
D) sales forecasting problems.
E) All of the above
7) Table 12-3
According to the information provided in Table 12-3, which presents a queuing problem
solution, on average, how long does each customer spend waiting in line?
A) 0.333 minute
B) 0.889 minute
C) 0.222 minute
D) 0.722 minute
E) 0.111 minute
8) A reference to the criterion used to select the regression line, to minimize the squared
distances between the estimated straight line and the observed values is called
A) Mean square error.
B) Sum of Squares.
C) Maximum likelihood.
D) R-square.
E) Least Squares.
9) A consulting firm has received 2 Super Bowl playoff tickets from one of its clients.
To be fair, the firm is randomly selecting two different employee names to “win” the
tickets. There are 6 secretaries, 5 consultants, and 4 partners in the firm. Which of the
following statements is true?
A) The probability of a partner winning on the second draw given that a partner won on
the first draw is 3/14.
B) The probability of a secretary winning on the second draw given that a secretary
won on the first draw is 2/15.
C) The probability of a consultant winning on the second draw given that a consultant
won on the first draw is 5/14.
D) The probability of a partner winning on the second draw given that a secretary won
on the first draw is 8/30.
E) None of the above are true.
10) The objective of a(n) ________ system is to reduce costs by integrating all of the
operations of a firm.
A) MRP
B) ERP
C) JIT
D) VMI
E) EOQ
11) If one changes the contribution rates in the objective function of an LP problem,
A) the feasible region will change.
B) the slope of the iso-profit or iso-cost line will change.
C) the optimal solution to the LP will no longer be optimal.
D) All of the above
E) None of the above