Download Final Exam 61.252 Introduction to Management Sciences Instructor

Final Exam 61.252 Introduction to Management Sciences
Instructor: G. V. Johnson
December 17, 2002
1:30 p.m. to 3:30 p.m.
Room 210-224 University Centre
Seats 307-328
Paper No. 492
Model Building: Break-Even Analysis
1.
__________ are generally independent of the volume of units produced and
sold.
a. Fixed costs
b. Variable costs
c. Profits
d. all of the above
A Maximization Model Example
2.
Non-negativity constraints restrict the decision variables to
a. 0
b. positive values
c. negative values
d. a and b
Sensitivity Analysis
3.
Mallory furniture buys 2 products for resale: big shelves (b) and medium
shelves (m). Each big shelf costs $500 and requires 100 cubic feet of
storage space, and each medium shelf costs $300 and requires 90 cubic
feet of storage space. The company has $75,000 to invest in shelves this
week, and the warehouse has 18,000 cubic feet available for storage.
Profit for each big shelf is $300 and for each medium shelf is $150.
What is the maximum profit?
a. $25,000
b. $35,000
c. $45,000
d. $55,000
A Multiperiod Scheduling Example
4.
Defining decision variables is the __________ step in systematic model
formulation.
a. fourth
b. third
c. second
d. first
Page 2
Integer Programming Graphical Solution
5.
The linear programming relaxation contains the objective function and
_______________ of the integer programming problem, but drops all
integer restrictions.
a. different variables
b. slack values
c. constraints
d. decision variables
The Transportation Model
6.
In a transportation problem, items are allocated from sources to
destinations
a. at a maximum cost
b. at a minimum cost
c. at a minimum profit
d. at a minimum revenue
7.
Which of the following are assumptions or requirements of the
transportation problem?
a. Minimum quantities must be shipped.
b. Shipping costs per unit do not vary with the quantity shipped.
c. There can only be one source.
d. all of the above
The Shortest Route Problem
8.
The first step in the shortest route solution method is to
a. select the node with the shortest direct route from the origin
b. determine all nodes directly connected to the permanent set nodes
c. establish a permanent set with the origin node
d. make sure that all nodes have joined the permanent set
9.
The last step in the shortest route solution method is to
a. select the node with the shortest direct route from the origin
b. determine all nodes directly connected to the permanent set nodes
c. establish a permanent set with the origin node
d. make sure that all nodes have joined the permanent set
The Minimal Spanning Tree Problem
10. The minimal spanning tree problem determines the
a. minimum amount that should be transported along any one path
b. maximum amount that can be transported along any one path
c. shortest distance between a source node and a destination node
d. minimum total branch lengths connecting all nodes in the network
Page 3
11. The minimal spanning tree problem determines the minimum total branch
lengths connecting all _________ in the network.
a. nodes
b. arcs
c. connections
d. connectors
The Maximal Flow Problem
12. The objective of the maximal flow solution approach is to
a. maximize resource allocation
b. maximize the total amount of flow from an origin to a destination
c. determine the longest distance between an originating point and one
or more destination points
d. determine the shortest distance between an originating point and one
or more destination points
The Elements of Project Management
13. Once a project is underway, the project manager is responsible for the
a. people
b. cost
c. time
d. all of the above
14. Elements of project planning are
a. hire personnel
b. divide up the work load
c. account for project funds
d. define project objectives
The Project Network
15. Project management differs from management for more traditional
activities mainly because of
a. its limited time frame
b. its unique set of activities
c. a and b
d. none of the above
16. _______ is the latest time an activity can start without delaying
critical path time.
a. EL
b. ES
c. EF
d. LS
Forecasting Components
17. Random variations are movements that are
a. not predictable
b. not following a pattern
c. none of the above
d. all of the above
Page 4
Time Series Methods
18. The closer beta is to ____________, the stronger a trend is reflected.
a. -1 / 1
b. -1
c. 0
d. 1
Model Building: Break-Even Analysis
19. A newly opened bed-and-breakfast projects the following:
Monthly fixed costs
$6000
Variable cost per occupied room per night
$20
Revenue per occupied room per night
$75
If there are 12 guest rooms available, what percentage of rooms would
have to be occupied, on average, to break even?
Computer Solution
20. If the original amount of a resource is 8, and the range of feasibility
for it can increase by 2, then the amount of the resource can increase
to what amount?
Sensitivity Analysis
21. Mallory furniture buys 2 products for resale: big shelves (b) and medium
shelves (m). Each big shelf costs $500 and requires 100 cubic feet of
storage space, and each medium shelf costs $300 and requires 90 cubic
feet of storage space. The company has $75,000 to invest in shelves this
week, and the warehouse has 18,000 cubic feet available for storage.
Profit for each big shelf is $300 and for each medium shelf is $150.
What is the storage space constraint?
A Marketing Example
22. The owner of Chips etc. produces 2 kinds of chips: Lime (L) and Vinegar
(V). He has a limited amount of the 3 ingredients used to produce these
chips available for his next production run: 4800 ounces of salt, 9600
ounces of flour, and 200 ounces of herbs. A bag of Lime chips requires 2
ounces of salt, 6 ounces of flour, and 1 ounce of herbs to produce;
while a bag of Vinegar chips requires 3 ounces of salt, 8 ounces of
flour, and 2 ounces of salt. Profits for a bag of Lime chips are $0.40,
and for a bag of Vinegar chips $0.50. For the production combination of
800 bags of Lime and 600 bags of Vinegar, which resource is slack?
Page 5
Computer Solution of a Transportation Problem
23.
SS
100
200
150
50
1
2
3
4
DD
1
5
4
3
9
250
2
6
2
6
7
250
How many supply-side constraints are there?
24.
SS
1
1
100
5
2
200
4
3
150
3
4
50
9
DD
250
What are the demand-side constraints?
2
6
2
6
7
250
The Project Network
25. Given the following data for a project network:
Events (nodes)
Activity
A
B
C
D
E
F
G
H
Start
1
1
2
2
3
4
5
6
Finish
2
3
4
5
5
6
6
7
Times (weeks)
Most
Optimistic
Likely
9
15
13
21
6
9
23
35
19
26
23
29
14
20
2
5
Pessimistic
21
23
18
47
27
41
26
8
What are the estimated expected mean times (in weeks) for activities AH?
Page 6
26. Given the following data for a project network:
Events (nodes)
Activity
A
B
C
D
E
F
G
H
Start
1
1
2
2
3
4
5
6
Finish
2
3
4
5
5
6
6
7
Times (weeks)
Most
Optimistic
Likely
9
15
13
21
6
9
23
35
19
26
23
29
14
20
2
5
Pessimistic
21
23
18
47
27
41
26
8
What is the critical path for this project network?
Time Series
27. Given the following data on hotel check-ins for a 6-month period:
July: 70 rooms
August: 105 rooms
September: 90 rooms
October: 120 rooms
November: 110 rooms
December: 115 rooms
What is the 3-month moving average for January?
28. Given the following data on the number of pints of ice cream sold at a
local ice cream store for a 6-period time frame:
Period
Demand
1
200
2
245
3
190
4
270
5
280
6
300
Compute a 3-period moving average for period 4.
Forecast Accuracy
29. If the forecast is 33 and the actual value is 44, then the error this
period is
30. If the absolute errors were calculated for 5 periods and the sum of the
absolute deviation is 60, what is the value of the MAD?
Page 7
The Management Science Approach to Problem Solving
31. A management science technique usually applies to a specific model type.
a. True
b. False
Characteristics of Linear Programming Problems
32. Linear programming models have an objective function to be minimized but
not maximized.
a. True
b. False
33. In the graphical approach, once the feasible solution area and the
optimal solution point have been determined from the graph, simultaneous
equations are solved to determine the values of x1 and x2 at the
solution point.
a. True
b. False
Sensitivity Analysis
34. Sensitivity analysis is the analysis of the effect of parameter changes
on the optimal solution.
a. True
b. False
A Blend Example
35. The shadow price is the marginal economic value of one additional unit
of a resource.
a. True
b. False
Integer Programming Models
36. In a total integer model, some solution values for decision variables
are integer and others can be non-integer.
a. True
b. False
Integer Programming Graphical Solution
37. Rounding integer solution values up to the nearest integer value will
still result in a feasible solution.
a. True
b. False
Page 8
Network Components
38. Networks are popular because they provide a picture of a system and
because a large number of systems can be easily modeled as networks.
a. True
b. False
The Minimal Spanning Tree Problem
39. The third step of the minimal spanning tree solution method is to select
the node closest to the starting node to join the spanning tree.
a. True
b. False
40. In a minimal spanning tree, all nodes in a network are connected.
a. True
b. False
The Maximal Flow Problem
41. The first step of the maximal flow solution method is to arbitrarily
select any path in the network from origin to destination.
a. True
b. False
The Shortest Route Problem
42. The shortest route problem is to find the shortest distance between an
origin and various destination points.
a. True
b. False
The Elements of Project Management
43. Comparing project schedule objectives is an element of project planning.
a. True
b. False
44. Identifying activities is an element of project planning.
a. True
b. False
45. Establishing precedence relationships is an element of project planning.
a. True
b. False
Page 9
46. Accounting for project funds is an element of project planning.
a. True
b. False
Forecasting Components
47. A trend is a gradual, long-term, up or down movement of demand.
a. True
b. False
48. Regression methods are the most common type of forecasting method for
the long-term strategic planning process.
a. True
b. False
Time Series Methods
49. Time series methods relate the forecast to time as the only factor.
a. True
b. False
50. Longer-period moving averages react more slowly to recent demand changes
than do shorter-period moving averages.
a. True
b. False