Question 1: In a balanced transportation model where supply equals demand,
a. all constraints are equalities
b. none of the constraints are equalities
c. all constraints are inequalities
d. none of the constraints are inequalities
Question 2: 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
Question 3: The assignment model is a special case of the ________ model.
a. maximum-flow
b. transportation
c. shortest-route
d. none of the above
Question 4: The linear programming model for a transportation problem has constraints for supply at each ______ and _______ at each destination.
a. destination / source
b. source / destination
c. demand / source
d. source / demand
Question 5: An assignment problem is a special form of transportation problem where all supply and demand values equal
a. 0
b. 1
c. 2
d. 3
Question 6: The transshipment model is an extension of the transportation model in which intermediate transshipment points are ______ between the sources and destinations.
a. decreased
b. deleted
c. subtracted
d. added
Question 7: Inventory costs include
a. carrying
b. ordering
c. shortage costs
d. all of the above
Question 8: In a(an) ____________ inventory system a constant amount is ordered when inventory declines to a predetermined level.
a. optional
b. economic
c. periodic
d. continuous
Question 9: EOQ is a(an) _________ inventory system.
a. periodic
b. continuous
c. optimal
d. economic
Question 10: As order size increases, total
a. inventory costs will increase, reach a maximum and then quickly decrease.
b. inventory cost will decrease, reach a minimum and then increase.
c. ordering costs will initially increase while total carrying cost will continue to decrease
d. carrying cost decreases while the total ordering cost increases
Question 11: If we roll 1 die the probability of any 1 of the 6 possible outcomes' occurring is 1/6. This is an example of a
a. subjective probability
b. classical probability
c. conditional probability
d. relative frequency probability
Question 12: A _________ probability is the probability that an event will occur given that another event has already occurred.
a. subjective
b. objective
c. conditional
d. binomial
Question 13: Farmer Green has a herd of cattle. Twenty percent of his herd are bulls. He has three different breeds of bulls--10 are Jerseys, 20 are Holsteins, and 20 are Guernseys. Given that you have selected a bull, what is the probability that the bull is also a Holstein?
a. 0.02
b. 0.20
c. 0.40
d. 0.80
Question 14: The events in an experiment are _________ if only one can occur at a time.
a. mutually exclusive
b. non-mutually exclusive
c. mutually inclusive
d. non-mutually inclusive
Question 15: Bayesian Analysis enables one to calculate posterior probabilities.
a. True
b. False
Question 16: A subjective probability reflects the feelings or opinions regarding the likelihood that an outcome will occur.
a. True
b. False
Question 17: The shipping company manager wants to determine the best routes for the trucks to take to reach their destinations. The problem can be solved using the
a. shortest route solution technique
b. minimum spanning tree solution method
c. maximal flow solution method
d. minimal flow solution method
Question 18: In the linear programming formulation of the shortest route problem, there is one constraint for each node indicating
a. capacity on each path
b. whatever comes into a node must also go out
c. capacity on each arc
d. a maximum capacity on a path
Question 19: The minimal spanning tree problem determines the ___________ total branch lengths connecting all nodes in the network
a. selected
b. maximum
c. minimum
d. divided
Question 20: The objective of the maximal flow solution approach is to _________ the total amount of flow from an origin to a destination
a. minimize
b. maximize
c. discriminate
d. divide
Question 21: Once a project is underway, the project manager is responsible for the
a. people
b. cost
c. time
d. all of the above
Question 22: If an activity cannot be delayed without affecting the entire project, it is a _______ activity
a. completed
b. critical
c. conjugated
d. none of the above
Question 23: A ____________ represents the beginning and end of activities, referred to as events.
a. path
b. arc
c. branch
d. node
Question 24: When an activity is completed at a node, it has been
a. finished
b. ended
c. realized
d. completed
Question 25: 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
Question 26: The critical path is the ____________ time the network can be completed.
a. maximum
b. minimum
c. longest
d. shortest
Question 27: Attributes of decision-making techniques include all of the following except:
a. payoffs
b. constraints
c. alternatives
d. states of nature
Question 28: With the criterion ____________, the decision maker attempts to avoid regret.
a. minimax regret
b. equal likelihood
c. Hurwicz
d. maximin
Question 29: To lose the opportunity to make a defined profit by making the best decision is referred to as:
a. equal likelihood criterion
b. state
c. payoff
d. regret
Question 30: When is it most appropriate to use a decision tree?
a. if the decision maker wishes to minimize opportunity loss
b. if a decision situation requires a series of decisions
c. if the decision maker must use perfect information
d. if all states of nature are equally likely to occur
Question 31: The coefficient of optimism may be selected to being a value between:
a. 0 and -1
b. 0 and +1
c. -1 and +1
d. -6 and +6
Question 32: According to the _____, the defensive player will select the strategy that has the smallest of the maximum payoffs.
a. maximax strategy
b. minimin strategy
c. maximin strategy
d. minimax strategy
Question 33: The expected opportunity loss criterion will always result in the same decision as the expected value criterion.
a. True
b. False
Question 34: A cereal company that is planning on marketing a new low-cholesterol cereal should be concerned about the states of nature--that is the probability that people will stay interested in eating healthy foods.
a. True
b. False
Question 35: The length of a queue
a. could be finite
b. could be infinite
c. can constantly change
d. all of the above
Question 36: Items may be taken from a queue
a. on a first-come-first-serve basis
b. on a last-come-first-serve basis
c. according to the due date of the item
d. all of the above
Question 37: Which of the following items is not a part of the queuing system?
a. arrival rate
b. service facility
c. waiting line
d. activity flow
Question 38: In a single-server queuing model, the average number customers in the queuing system is calculated by dividing the arrival rate by:
a. service rate
b. service time
c. service rate minus arrival rate
d. service rate plus arrival rate
Question 39: The most important factors to consider in analyzing a queuing system are
a. the service and arrival rate
b. the nature of the calling population
c. the queue discipline
d. all of the above
Question 40: Queuing analysis is a deterministic technique.
a. True
b. False
Question 41: The operating characteristics of a queuing system provide information rather than an optimization of a queuing system.
a. True
b. False
Question 42: The applicability of forecasting methods depends on
a. the time frame of the forecast
b. the existence of patterns in the forecast
c. the number of variables to which the forecast is related
d. all of the above
Question 43: _________ is a gradual, long-term, up or down movement of demand.
a. seasonal pattern
b. cycle
c. trend
d. prediction
Question 44: ___________ is good for stable demand with no pronounced behavioral patterns.
a. longer-period moving average
b. shorter-period moving average
c. moving average
d. weighted moving average
Question 45: The Delphi method for acquiring informed judgments and opinions from knowledgeable individuals uses a series of questionnaires to develop a consensus forecast about what will occur in the future.
a. True
b. False
Question 46: ___________ methods assume that what has occurred in the past will continue to occur in the future.
a. Time series
b. Regression
c. Quantitative
d. Qualitative
Question 47: In exponential smoothing, the closer alpha is to ___________, the greater the reaction to the most recent demand.
a. -1
b. 0
c. 1
d. 5
Question 48: Time series methods tend to be most useful for short-range forecasting.
a. True
b. False
Question 49: An exponential smoothing forecast will react more strongly to immediate changes in the data than the moving average.
a. True
b. False
Question 50: Longer-period moving averages react more quickly to recent demand changes than do shorter-period moving averages.
a. True
b. False