1) Which of the following is not a property of all linear programming problems?
A) the presence of restrictions
B) optimization of some objective
C) a computer program
D) alternate courses of action to choose from
E) usage of only linear equations and inequalities
2) Historical data indicates that only 20% of cable customers are willing to switch
companies. If a binomial process is assumed, then in a sample of 20 cable customers,
what is the probability that exactly 2 customers would be willing to switch their cable?
A) 0.1
B) 0.04
C) 0.137
D) 0.206
E) 0.794
3) If the total supply from the sources does not equal the total demand from the
destinations in the transportation problem,
A) and if supply is greater than demand, add a dummy source or factory.
B) the amount put in a dummy source or destination should make supply and demand
equal.
C) and if demand is greater than supply, add a dummy destination or warehouse.
D) All of the above
E) None of the above
4) Multiply matrix by .
A) [31 -6]
B)
C) [-6 31]
D)
E) None of the above
5) In the exponential smoothing with trend adjustment forecasting method, is the
A) slope of the trend line.
B) new forecast.
C) Y-axis intercept.
D) independent variable.
E) trend smoothing constant.
6) Media selection problems are typically approached with LP by either
A) maximizing audience exposure or maximizing number of ads per time period.
B) maximizing the number of different media or minimizing advertising costs.
C) minimizing the number of different media or minimizing advertising costs.
D) maximizing audience exposure or minimizing advertising costs.
E) minimizing audience exposure or minimizing advertising costs.
7) 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 3 random numbers were 02, 81, and 18. These
numbers are used to simulate arrivals into the pharmacy. What would the average
number of arrivals per 10-minute period be based on this set of occurrences?
A) 6
B) 7
C) 8
D) 9
E) None of the above
8) Inventory
A) is any stored resource used to satisfy current or future need.
B) includes raw materials, work-in-process, and finished goods.
C) levels for finished goods are a direct function of demand.
D) needs from raw materials through finished goods can be reasonably determined,
once finished goods demand is determined.
E) All of the above
9) Assume that you have tried three different forecasting models. For the first, the MAD
= 2.5, for the second, the MSE = 10.5, and for the third, the MAPE = 2.7. We can then
say:
A) the third method is the best.
B) the second method is the best.
C) methods one and three are preferable to method two.
D) method two is least preferred.
E) None of the above
10) The following payoff table provides profits based on various possible decision
alternatives and various levels of demand.
The probability of a low demand is 0.4, while the probability of a medium and high
demand is each 0.3.
(a) What decision would an optimist make?
(b) What decision would a pessimist make?
(c) What is the highest possible expected monetary value?
(d) Calculate the expected value of perfect information for this situation.
11) A manager is deciding whether or not to build a small facility. Demand is uncertain
and can be either at a high or low level. If the manager chooses a small facility and
demand is low, the payoff is $300. If the manager chooses a small facility and demand
is high, the payoff is $100. On the other hand, if the manager chooses a large facility
and demand is low, the payoff is -$200, but if demand is high, the payoff is $800.
(a) What would be the best decision based on the maximax criterion?
(b) What would be the best decision based on the maximin criterion?
(c) What would be the best decision based on the minimax regret?
12) Furniture Manufacturers Inc., uses 20,000 loads of lumber per year. A load of
lumber costs $500 and the carrying cost is 10 percent of the unit cost. The cost to order
is $200 per order and the lead-time is three working days. Assuming 200 working days,
determine:
(a) the economic order quantity.
(b) the reorder point.
(c) number of orders per year.
(d) working days between orders.