1) The assignment of a utility value of 1 to an alternative implies that alternative is
preferred to all others.
2) One PERT/COST assumption is that money is spent at a constant rate over the time
taken to complete an activity.
3) Resource restrictions are called constraints.
4) A trend-projection forecasting method is a causal forecasting method.
5) The linear programming model of the production scheduling process can include the
impact of hiring and layoffs, regular and overtime pay rates, and the desire to have a
constant and stable production schedule over a several-month period.
6) In the minimal-spanning tree technique, if there is a tie for the nearest node, that
suggests that there may be more than one optimal solution.
7) A mathematical model shows the relationship between quantifiable and
non-quantifiable information.
8) Fresh First grocery store purchases bread at $1 per loaf and sells it at $1.50 a loaf.
Any unsold bread is fed to the geese at a local pond. What is the decision rule?
A) stock an additional unit if P>= 0.33
B) stock an additional unit if P>= 0.4
C) stock an additional unit if P>= 0.5
D) stock an additional unit if P>= 0.67
E) stock an additional unit if P>= 0.75
9) Given an activity’s optimistic, most likely, and pessimistic time estimates of 2, 5, and
14 days respectively, compute the PERT expected activity time for this activity.
A) 6
B) 7
C) 9
D) 5
E) None of the above
10) A c-chart is based on which of the following probability distributions?
A) Poisson
B) Binomial
C) Uniform
D) Exponential
E) Gamma
11) There are seven cities (City 1-City 7) served by Acme Trucking. Route availability
is limited. The distances, in hundreds of miles, are given in the table below for each
route.
What route should the truck from City 1 to City 7 take?
A) 1-2, 2-5, 5-7
B) 1-3, 3-4, 4-6, 6-7
C) 1-2, 2-4, 4-5, 5-6, 6-7
D) 1-3, 3-5, 5-6, 6-7
E) None of the above
12) Which of the following is not an advantage of simulation?
A) It allows for the study of what-if questions.
B) Each simulation model is unique.
C) It allows the study of interaction of components or variables to determine which are
important.
D) It allows time compression.
E) None of the above
13) When using the stepping-stone method, what is the maximum amount that can be
shipped on the new route?
A) the smallest number found in the squares with minus signs
B) the smallest number found in the squares with plus signs
C) the smallest number along the closed path
D) the minimum of the demand requirement for that column and the supply capacity for
that row
E) the largest number found on the squares with minus signs
14) A quadratic programming problem involves which of the following conditions?
A) squared terms in the objective function and linear constraints
B) linear objective function and squared terms in the constraints
C) squared terms in both the objective function and constraints
D) a strictly goal programming problem with squared terms in the objective function
E) None of the above
15) In Bayesian analysis, conditional probabilities are also known as which of the
following?
A) anterior probabilities
B) posterior probabilities
C) prior probabilities
D) marginal probabilities
E) joint probabilities
16) Suppose that, historically, April has experienced rain and a temperature between 35
and 50 degrees on 20 days. Also, historically, the month of April has had a temperature
between 35 and 50 degrees on 25 days. You have scheduled a golf tournament for April
12. If the temperature is between 35 and 50 degrees on that day, what will be the
probability that the players will get wet?
A) 0.333
B) 0.667
C) 0.800
D) 1.000
E) 0.556
17) The following information describes a shortest-route problem with the distance in
miles. How many stages will this dynamic problem have?
A) 8
B) 4
C) 3
D) 2
E) 1
18) Which of the following represents the primary reason simulation cannot be used for
the classic EOQ model?
A) too many parameters involved
B) too many decision variables
C) EOQ models are probabilistic
D) EOQ models are deterministic
E) None of the above
19) A p-chart has been developed for a particular item. In the past, 4% of such items
have been found to be defective. If a sample of 100 is taken, and 9 of these are found to
be defective, should the process be considered out of control based on 95.5% control
limits? Explain.
20) As increases, the spread of a distribution ________.
21) List three general categories of inventory.
22) Describe the concept of “mutually exclusive” in the context of Markov analysis.