Introduction to Management Science
1) Management science involves the philosophy of approaching a problem in a subjective manner.
2) Management science techniques can be applied only to business and military organizations.
3) Management scientists use the terms "data" and "information" interchangeably--that is, the two terms mean the same thing
4) A management science solution can be either a recommended decision or information that helps a manager make a decision
5) A variable is a value that is usually a coefficient of a parameter in an equation.
6) Parameters are known, constant values that are usually coefficients of variables in equations.
7) Data are pieces of information from the problem environment.
8) A model is a mathematical representation of a problem situation including variables, parameters, and equations.
9) A management science technique usually applies to a specific model type.
10) The first step of the management science process is to define the problem.
11) Management science modeling techniques provide results that are known with certainty.
12) The term "sensitivity analysis" refers to testing how a problem solution reacts to changes in one or more of the model parameters.
13) Fixed costs depend on the number of items produced.
14) Variable costs depend on the number of items produced.
15) Fixed cost is the difference between total cost and total variable cost.
16) The break-even point is the volume that equates total revenue with total cost.
17) In general, an increase in price increases the break-even point if all costs are held constant.
18) If variable costs increase, but price and fixed costs are held constant, the break-even point will decrease.
19) Managers utilize spreadsheets to conduct their own analyses in management science studies.
20) Management science techniques focus primarily on observation, model construction, and implementation to find an appropriate solution to a problem.
21) Management science modeling techniques focus on model construction and problem solution.
22) A typical objective function might be written as 3S + 2R + 5Z ≤ 20.
23) Decision Support Systems (DSS) use computers to help decision makers address complex problems.
24) In both an objective function and a constraint, the decision variables are represented by numbers.
25) Constraints usually appear as equations that are less than, equal to, or greater than a parameter.