1) An ingredient or blending problem is a special case of the more general problem
known as diet and feed mix problems.
2) For knapsack problems, sn-1 = an sn + bn dn + cn is a typical transformation
expression.
3) Shortening a project is called crashing.
4) In any regression model, there is an implicit assumption that a relationship exists
between the variables.
5) On a practical notewe should probably view the checkout counters in a grocery store
as a set of single channel systems.
6) If the significance level for the F-test is high enough, there is a relationship between
the dependent and independent variables.
7) A sensitivity analysis allows a manager to answer the “what if” questions.
8) An increase in ordering cost will increase the economic order quantity, holding all
other factors constant.
9) Equilibrium state probabilities may be estimated by using Markov analysis for a
large number of periods.
10) CPM is a probabilistic analysis of managing a project.
11) The points on the network are referred to as nodes.
12) Assume that you have an urn containing 10 balls of the following description:
4 are white (W) and lettered (L)
2 are white (W) and numbered (N)
3 are yellow (Y) and lettered (L)
1 is yellow (Y) and numbered (N)
If you draw a lettered ball (L), the probability that this ball is white (W) is 0.571.
13) The following objective function is nonlinear: Max 5X + (1/8)Y – Z.
14) The minimal-spanning tree technique determines the path through the network that
connects all the points while minimizing total distance.
15) With ________, inventory arrives just before it is needed.
A) VMI
B) ABC
C) ERP
D) JIT
E) JBT
16) Which of the following is not a part of every linear programming problem
formulation?
A) an objective function
B) a set of constraints
C) non-negativity constraints
D) a redundant constraint
E) maximization or minimization of a linear function
17) In the ABC analysis of inventory, the A group items
A) are critical to the functioning of the organization.
B) are the most expensive class of items.
C) typically account for over 70 percent of the company’s business in dollars.
D) typically account for about 10 percent of a company’s inventory items.
E) All of the above
18) A concessionaire for the local ballpark has developed a table of conditional values
for the various alternatives (stocking decision) and states of nature (size of crowd).
If the probabilities associated with the states of nature are 0.30 for a large crowd, 0.50
for an average crowd, and 0.20 for a small crowd, determine:
(a) the opportunity loss table.
(b) minimum expected opportunity loss (EOL).
19) The process of determining that the computer model is internally consistent and
following the logic of the conceptual model is called
A) validation.
B) verification.
C) simulation.
D) experimentation.
E) None of the above
20) Table 8-1
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 3 hours of assembly, 2 hours of finishing, and 1 hour of inspection.
Each chair requires 2 hours of assembly, 2 hours of finishing, and 1 hour of inspection.
The profit per table is $120 while the profit per chair is $80. Currently, each week there
are 200 hours of assembly time available, 180 hours of finishing time, and 40 hours of
inspection time. 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 8-1, which describes a production problem, suppose it is decided
that there must be 4 chairs produced for every table. How would this constraint be
written?
A) T >=C
B) T =< C
C) 4T = C
D) T = 4C
21) 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. If you wished to find the probability of finishing the project in 20 weeks or fewer,
it would be necessary to find the variance and then the standard deviation to be used
with the normal distribution. What variance would be used?
A) 2
B) 4
C) 8
D) 12
E) None of the above
22) A company uses 2,750 per year of a certain subassembly that has a purchase cost of
$450, and an annual holding cost of $500 per unit. Each order placed costs $150. The
company operates 300 days per year and it has found that an order must be placed with
the supplier 12 working days before it can expect to receive that order. For this
subassembly, find:
(a) the economic order quantity.
(b) the reorder point.
23) A model containing a linear objective function and linear constraints but requiring
that one or more of the decision variables take on an integer value in the final solution
is called
A) a goal programming problem.
B) an integer programming problem.
C) a nonlinear programming problem.
D) a multiple objective LP problem.
E) a branch-and-bound programming problem.
24) A dummy variable is also called a(n)
A) indicator variable.
B) dependent variable.
C) continuous variable.
D) response variable.
E) None of the above
25) Table M2-5
The data below is a dynamic programming solution for a shortest route problem.
Using the data in Table M2-5, determine the optimal distance of stage 2.
A) 10
B) 7
C) 8
D) 11
E) None of the above
26) A certain grocery store has created the following tables of intervals of random
numbers with regard to the number of people who arrive at its three checkout stands
ready to check out, and the time it takes to check out the individuals. Simulate the
utilization rate of the three checkout stands over four minutes using the following
random numbers for arrivals: 07, 60, 49, and 95. Use the following random numbers for
service: 77, 76, 51, and 16. Describe the results at the end of the four-minute period.
27) Inaccurate model input data leads to inaccurate model solutions. This phenomenon
is commonly referred to as ________.
28) In a PERT analysis, how is the optimistic time defined?
29) Find the shortest route from Node 1 to each of the other nodes in the transportation
network represented below.
30) Explain what an artificial variable represents in a constraint.
31) Explain what the correlation coefficient is.
32) List the six steps in decision making.
33) List the two parameters of the normal distribution.