ISAT 645 Review for Exam I
October 17, 2005
1. Which of the following is not a reason for the failure of a particular quantitative analysis technique in solving a problem?
(a) underestimating the total cost of using quantitative techniques
(b) failure to define the real problem
(c) under-emphasis on theory and over-emphasis on application
(d) underestimating the total time required to develop and implement the most appropriate technique
(e) resistance to change and reluctance of decision-makers to trust and act upon the results obtained by using unfamiliar techniques
2. Who is credited with pioneering the principles of the scientific approach to management?
(a) Adam Smith
(b) Henri Fayol
(c) John R. Locke
(d) Frederick W. Taylor
(e) Charles Babbage
1. A(n) ______is an abstract representation of reality or of a reallife situation.
(a) objective
(b) model
(c) analysis
(d) algorithm
(e) none of the above
4. A measurable quantity that may vary, or is subject to change, and can be controlled, is known as a(n)
(a) decision variable.
(b) algorithm.
(c) parameter.
(d) solution.
(e) none of the above
5. A set of logical and mathematical operations performed in a specific sequence is called a(n)
(a) complete enumeration.
(b) diagnostic analysis.
(c) algorithm.
(d) objective.
(e) none of the above
6. The variability of a solution to changes in the model and input data is a very important part of the analysis of the results. This type of analysis is called ______analysis.
(a) sensitivity
(b) implicit
(c) normal
(d) scale
(e) objective
7. The last step in the quantitative analysis approach is to
(a) develop a solution.
(b) test the solution.
(c) analyze the results.
(d) implement the results.
(e) none of these
8. Which of the following is not a step in the quantitative analysis approach?
(a) developing a model
(b) acquiring input data
(c) implementing the results
(d) analyzing the results
(e) writing a computer program
9. The final step in the problem solution process is:
(a) developing a model.
(b) obtaining input data.
(c) implementing the solution.
(d) evaluating the solution.
(e) none of the above.
10. All of the following terms are interchangeable except
(a) quantitative analysis.
(b) operations research.
(c) management science.
(d) research management.
(e) none of the above
11. Which of the following is a qualitative factor rather than a quantitative factor?
(a) weekly sales for a company
(b) new legislation
(c) total production cost
(d) gross national product
(e) all of the above
12. A controllable variable is also called a
(a) parameter.
(b) decision variable.
(c) mathematical model.
(d) measurable quantity.
(e) none of the above.
13. 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
14. In developing a quantitative model, it is most important to
(a) be especially good at mathematics.
(b) be especially good a using computers.
(c) ask the right questions.
(d) represent reality as accurately as possible.
(e) none of the above
15. A southwestern tourist city has records indicating that the average daily temperature in the summer is 82 degrees F, which is normally distributed with a standard deviation of 3 degrees F. Based on these records, determine:
(a) the probability of a daily temperature between 79 degrees F and 85 degrees F
(b) the probability that the daily temperature exceeds 90 degrees F
(c) the probability that the daily temperature is below 76 degrees F
16. Using the table for finding the areas under normal curves, find the area under a normal curve with a mean of 200 and a standard deviation of 10 between the values of:
(a) 200 to 205
(b) 195 to 205
(c) 200 to 215
(d) 195 to 215
(e) 186.5 to 217
17. Arrivals in a university advising office during the week of registration are known to follow a Poisson distribution with an average of 4 people arriving each hour.
(a) What is the probability that exactly 4 people will arrive in the next hour?
(b) What is the probability that exactly 5 people will arrive in the next hour?
18. Over the last two months, the Wilmington Phantoms have been encountering trouble with one of their star basketball players. During the last 30 games, he has fouled out 15 times. The owner of the basketball team has stated that if this player fouls out 2 more times in their next 5 games, the player will be fined $200. What is the probability that the player will be fined? What is the probability that the player will foul out of all 5 games? What is the probability that the player will not foul out of any of the next 5 games?
19. Which of the following is a valid use of inventory?
(a) the decoupling function.
(b) to take advantage of quantity discounts.
(c) to avoid shortages and stockouts.
(d) to smooth out irregular supply and demand.
(e) all of the above
20. Which of the following is not an assumption for the basic EOQ model?
(a) Only an integer number of orders can be made each year.
(b) Quantity discounts are not possible.
(c) Inventory receipt is instantaneous (all at once).
(d) With orders placed at the correct time, there will be no shortages.
(e) Demand is known.
(f)
21. In making inventory decisions, the purpose of the basic model is to
(a) minimize customer dissatisfaction.
(b) minimize stock on hand.
(c) minimize carrying costs.
(d) minimize ordering costs.
(e) minimize the sum of carrying costs and ordering costs.
22. The reorder point is
(a) the average inventory level.
(b) found by a square root formula.
(c) the quantity level at which to place an order for Q.
(d) the slope of the inventory level curve.
(e) where ordering cost equals carrying cost.
23. In the production run model, the maximum inventory level will be
(a) greater than the production quantity.
(b) equal to the production quantity.
(c) less than the production quantity.
(d) equal to the daily production rate plus the daily demand
24. 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
25. A feasible solution to a linear programming problem
(a) must satisfy all of the problem's constraints simultaneously.
(b) need not satisfy all of the constraints, only the non-negativity constraints.
(c) must be a corner point of the feasible region.
(d) must give the maximum possible profit.
26. An optimal solution to a linear program
(a) will always lie at an extreme point of the feasible region.
(b) could be any point in the feasible region of the problem.
(c) will always be unique (only one optimal solution possible for any one problem).
(d) will always include at least some of each product or variable.
(e) must always be in whole numbers (integers).
27. Infeasibility in a linear programming problem occurs when
(a) there is an infinite solution.
(b) a constraint is redundant.
(c) more than one solution is optimal.
(d) the feasible region is unbounded.
(e) there is no solution that satisfies all the constraints given.
28. Adding a constraint to a linear programming (maximization) problem may result in
(a) a decrease in the value of the objective function.
(b) an increase in the value of the objective function.
(c) no change to the objective function.
(d) either (c) or (a) depending on the constraint.
(e) either (c) or (b) depending on the constraint.
29. Sensitivity analysis may also be called
(a) postoptimality analysis.
(b) parametric programming.
(c) optimality analysis.
(d) all of the above
(e) none of the above
30. Changes in the technological coefficients of an LP problem
(a) often reflect changes in the state of technology.
(b) have no effect on the objective function of the linear program.
(c) can produce a significant change in the shape of the feasible solution region.
(d) all of the above
(e) none of the above
31. Mr. Glass distributes specialty mirrors. They have an annual demand of 20,000 mirrors and a cost of $80 per mirror. The cost of ordering is $100 per order and inventory carrying cost is $4 per mirror. Lead time is four working days. Determine (assume 200 working days):
(a) the economic order quantity
(b) the reorder point
(c) the optimal number of orders per year
(d) the average inventory level
32. The MetalShoppe inventories product R. The carrying cost of one unit per year is $30.00, and the cost of a stockout is $50.00 per unit. Using the lead time demand probability distribution given below, determine the appropriate safety stock. Assume two orders are placed per year.
Lead Time Demand (Units) / Probability30 / 0.10
40 / 0.20
ROP=> / 50 / 0.30
60 / 0.20
70 / 0.20
33. Jimmie’s machine shop uses 2500 brackets in one year. Jimmie decides to produce these brackets in-house. There are 250 working days per year. The setup cost is about $25, and 50 brackets could be produced in one day. The holding cost is $1.48 per bracket per year.
a. What is the optimal production quantity?
b. How long will take to produce the optimal quantity?
c. Given the optimal production run size, what is the total annual inventory cost (exclude the cost of material)?
34. Solve the following LP problem using the corner point method
Maximize Profit
Subject to: , .
35. Friendly Manufacturing has three factories (1, 2, and 3) and three warehouses (A, B, and C). The table below shows the shipping costs between each factory (in dollars) and warehouse, the factory manufacturing capabilities (in 1000s) and the warehouse capacities (in 1000s). Write the objective function and the constraint inequalities. Let X1A = 1000s of units shipped from factory 1 to warehouse A, etc.
From To Production
A B C Capability
Factory 1 6 5 3 6
Factory 2 8 10 8 8
Factory 3 11 14 18 10
Capacity 7 12 5
36. Consider the following LP problem:
maximize Profit
Subject to :
a. What is the optimal solution?
b. If a technical breakthrough occurred that raised the profit per unit of X to $3, would this affect the optimal solution?
c. If the profit coefficient of Y is changed to 1.5, would this affect the optimal solution?
d.
How much more profit can be gained if the right-hand side is increased to 120?