1) In a quantity discount model, the purchase cost or material cost must be included in
the total cost calculation.
2) Simulation models are designed to generate optimal solutions, which can then be
applied to real-world situations.
3) In a transportation problem, each destination must be supplied by one and only one
source.
4) Simulation models are useful for economic order quantity problems with
probabilistic demand and lead time.
5) If the upper value of the game is larger than the lower value of the game, a saddle
point condition exists.
6) Through the use of PERT/CPM, astute managers can derive flexibility by identifying
noncritical activities and replanning, rescheduling, and reallocating resources such as
personnel and finances.
7) To determine the effect of input changes on decision results, we should perform a
sensitivity analysis.
8) We cannot multiply an n x m matrix by an m x 1 matrix.
9) The criterion of realism is also called the Laplace criterion.
10) In any linear programming problem, if a variable is to enter the solution, it must
have a positive coefficient in the Cj – Zj row.
11) Using the stepping-stone method to solve a maximization problem, we would
choose the route with the largest positive improvement index.
12) C-charts are used to analyze the proportion defective in a sample.
13) PERT was developed for a project for which activity or task times were uncertain.
14) We can always perform the matrix multiplication AA.
15) The problem that NASA has in determining what types of cargo may be loaded on
the space shuttle is an example of a knapsack problem.
16) Assignment problems solved previously by linear programming techniques are also
examples of
A) pure-integer programming problems.
B) mixed-integer programming problems.
C) zero-one integer programming problems.
D) goal programming problems.
E) nonlinear programming problems.
17) Consider the following 0 – 1 integer programming problem:
If we wish to add the constraint that X must be positive, and that only Y or Z, but not
both, can be positive, how would the additional constraint(s) be written?
A) X + Y + Z =< 3, Y + Z =< 1
B) X =< 1, Y + Z = 1
C) X =< 2, and Y =< 2, and Z =< 2
D) X = 1, Y + Z =< 1
E) None of the above
18) If P(A) = 0.3, P(B) = 0.2, P(A and B) = 0.0, what can be said about events A and B?
A) They are independent.
B) They are mutually exclusive.
C) They are posterior probabilities.
D) None of the above
E) All of the above
19) 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 3 for the optimal route.
A) 22
B) 23
C) 24
D) 7
E) 10
20) 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.
Formulate this problem as a linear program.
21) CleanClothes dry cleaners is opening a pick-up and delivery service. There is only
one other dry cleaner that currently offers this service. To advertise, CleanClothes is
considering either newspaper ads or attaching flyers to the doors of many local homes.
The payoff for each of CleanClothes’ potential strategies is given in the table below.
What strategy will CleanClothes (X) play?
A) X1
B) X2
C) Y1
D) Y2
E) Not enough information given
22) Consider the following linear programming problem:
This is a special case of a linear programming problem in which
A) there is no feasible solution.
B) there is a redundant constraint.
C) there are multiple optimal solutions.
D) this cannot be solved graphically.
E) None of the above
23) Evaluating all possible values of a variable in a model is called
A) trial and error.
B) complete enumeration.
C) an algorithm.
D) variablization.
E) None of the above
24) At a local fast food joint, cars arrive randomly at a rate of 12 every 30 minutes. The
fast food joint takes exactly 2 minutes (this is constant). The average total time in the
system is
A) 5.4 minutes.
B) 6.0 minutes.
C) 8.0 minutes.
D) 2.5 minutes.
E) None of the above
25) The diagram below illustrates data with a
A) negative correlation coefficient.
B) zero correlation coefficient.
C) positive correlation coefficient.
D) correlation coefficient equal to +1.
E) None of the above
26) The crash time of an activity represents
A) the normal time to complete an activity.
B) the most pessimistic time to complete an activity.
C) the incremental decrease in the time to complete an activity.
D) the shortened activity time.
E) None of the above
27) What are the decision variables in the diet problem?
A) amount of each ingredient to use
B) number of ingredients to use
C) amount of each type of food to purchase
D) number of items of food to purchase
E) None of the above
28) Table 12-4
According to the information provided in Table 12-4, which presents a queuing problem
solution for a queuing problem with a constant service rate, on average, how many
customers arrive per time period?
A) 3
B) 4
C) 1.875
D) 1.125
E) None of the above
29) Describe the nave forecasting method.
30) Compare the shadow price to the dual price.
31) Briefly describe the opportunity loss function.
32) Describe the purpose and structure of a scatter diagram.
33) Given the following two-person game, what strategy should the players play?
34) Before a market survey is done, there is a 50/50 chance that a new soccer supply
store would be a success. The people doing the survey have determined that there is a
0.9 probability that the survey will be favorable given a successful store. There is also a
0.75 probability that the survey will be unfavorable given an unsuccessful store. What
is the probability that the survey will be unfavorable?