FINAL EXAMINATION

 

Date:

DECEMBER 07, 2000

School Year:

2000-2001

Course and No.:

ADMN2616EA

Time:

9:00 AM-12:00 PM

Professor:

REED, T

Department:

Arts & Science

Number of Pages:

17 + cover

Time Allowed:

3 Hours

Special Instructions:

 

PLEASE ANSWER ALL QUESTIONS ON MULTIPLE-CHOICE ANSWER SHEETS.

 

 

 

1. Managers need to know the mathematical theory behind the techniques of management science so that they can lead management science teams.

A) True

B) False

 

2. Management science is a discipline that attempts to aid managerial decision making by applying a scientific approach to managerial problems that involve quantitative factors.

A) True

B) False

 

3. Managers make decisions based solely on the quantitative factors involved in the problem.

A) True

B) False

 

4. The mathematical model of a business problem is the system of equations and related mathematical expressions that describes the essence of the problem.

A) True

B) False

 

5. Given the following 2 constraints, which solution is a feasible solution for a minimization problem?

(1)

(2)

 

A) .

B) .

C) .

D) .

E) .

 

6. Which objective function has the same slope as this one: 4x + 2y = 20.

A) 2x + 4y = 20.

B) 2x - 4y = 20.

C) 4x - 2y = 20.

D) 8x + 8y = 20.

E) 4x + 2y = 10.

 

7. Solving linear programming problems graphically,

A) is possible with any number of decision variables.

B) provides geometric intuition about what linear programming is trying to achieve.

C) will always result in an optimal solution.

D) All of the above.

E) None of the above.

 

8.When using the graphical method, the region that satisfies all of the constraints of a linear programming problem is called the:

A) optimum solution space.

B) region of optimality.

C) profit maximization space.

D) feasible region.

E) region of non-negativity.

 

9. For the products A, B, C, and D, which of the following could be a linear programming objective function?

A) .

B) .

C) .

D) .

E) All of the above.

 

10. When formulating a linear programming problem on a spreadsheet, which of the following is true?

A) Parameters are called data cells.

B) Decision variables are called changing cells.

C) Non-negativity constraints must be included.

D) The objective function is called the target cell.

E) All of the above.

 

11. A network representation is helpful because it shows the geographical layout of the sources and destinations of a problem.

A) True

B) False

 

12. Transportation problems are a special type of distribution-network problem.

A) True

B) False

 

13. Transportation problems can be solved by the simplex method.

A) True

B) False

 

14. Assignment problems are cost minimization problems and cannot be solved as a profit maximization problem.

A) True

B) False

 

15. The transportation model method for evaluating location alternatives minimizes:

A) the number of sources.

B) the number of destinations.

C) total supply.

D) total demand.

E) total shipping cost

 

16. Which of the following can be used to solve transportation problems?

A) The simplex method.

B) The transportation simplex method.

C) The network simplex method.

D) All of the above.

E) None of the above.

 

17. Testing how a problem solution reacts to changes in one or more of the model parameters is called:

A) analysis of tradeoff.

B) sensitivity analysis.

C) priority recognition.

D) analysis of variance.

E) decision analysis.

 

18. Determining the worst payoff for each alternative and choosing the alternative with the "best worst" is the criterion called:

A) minimin.

B) maximin.

C) maximax.

D) maximum likelihood.

E) Bayes decision rule.

 

19. Safety stock is held to meet anticipated need.

A) True

B) False

 

20. Using the basic EOQ model, the higher an itemís holding costs, the more frequently it will be ordered.

A) True

B) False

 

21. In the JIT philosophy, the smaller the lot sizes, the better.

A) True

B) False

 

22. In the basic EOQ model, annual setup cost is equal to:

A) the EOQ multiplied by setup cost.

B) the EOQ divided by setup cost.

C) setup cost multiplied by the ratio of the annual demand to the EOQ.

D) setup cost multiplied by the ratio of the EOQ to annual demand.

E) setup cost multiplied by annual demand.

 

23. In the basic EOQ model, if annual demand doubles what is the effect on the EOQ?

A) It doubles.

B) It is four times its previous amount.

C) It is half its previous amount.

D) it is about 70% of its previous amount.

E) It increases by about 40%.

 

24. In the basic EOQ model, an annual demand of 40 units, a setup cost of $5, and a holding cost of $1/unit per year will result in an EOQ of:

A) 20.

B) square root of 200.

C) 200.

D) 400.

E) None of the above.

 

25. In the basic EOQ model, if D= 60 per month, K=$12, and h=$10 per unit per month, EOQ is:

A) 10.

B) 12.

C) 24.

D) 72.

E) 144.

 

26. Which of the following is not an assumption of the EOQ model with planned shortages?

A) Demand is constant.

B) Each order is received all at once.

C) Orders are received just when desired.

D) When a shortage occurs, customers are lost.

E) All are assumptions.

 

27. Which of the following is not true for the EOQ model with gradual replenishment?

A) Demand is constant.

B) Production rate exceeds usage rate.

C) Run size exceeds maximum inventory.

D) There are no setup costs.

E) Average inventory is one-half maximum inventory.

 

28. In the EOQ model with quantity discounts, with holding cost stated as a percentage of unit purchase price, in order for the EOQ of the lowest curve to be optimum, it must:

A) have the lowest total cost.

B) be in a feasible range.

C) be to the left of the pricebreak quantity for that price.

D) have the largest quantity compared to other EOQs.

E) None of the above.

 

 

Use the following to answer questions 29-32:

The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of beer each day. Ordering costs are $8 per order, and beer costs $0.80 per six-pack (each case of beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5% of the cost of the beer.

 

29. At what point should the manager reorder?

A) 0 cases remaining.

B) 4 cases remaining.

C) 12 cases remaining.

D) 16 cases remaining.

E) 20 cases remaining.

 

30. If the manager was to order 16 cases of beer at a time, what would be the length of an order cycle?

A) 0.25 days.

B) 3 days.

C) 1 day.

D) 4 days.

E) 20 days.

 

31. If the manager was to order 16 cases of beer at a time, what would be the average inventory level?

A) 4 cases.

B) 8 cases.

C) 12 cases.

D) 16 cases.

E) 20 cases.

 

32. What is the EOQ for beer?

A) 4 cases.

B) 8 cases.

C) 10 cases.

D) 20 cases.

E) 80 cases.

 

 

 

Use the following to answer questions 33-35:

 

Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10 per order, and holding costs are 4 cents per pound per day. Lead time for each order is 3 days, and the pepperoni itself costs $3 per pound.

 

33. At what point should she reorder pepperoni?

A) 20 pounds remaining.

B) 40 pounds remaining.

C) 60 pounds remaining.

D) 80 pounds remaining.

E) 100 pounds remaining.

 

34. If she was to order 80 pounds of pepperoni at a time, what would be the length of an order cycle?

A) 0 days.

B) 0.25 days.

C) 3 day.

D) 4 days.

E) 5 days.

 

35. What is the EOQ for pepperoni?

A) 20 pounds.

B) 40 pounds.

C) 60 pounds.

D) 80 pounds.

E) 100 pounds.

 

36. Which of the following products would be most likely to have dependent demand?

A) Refrigerators.

B) Car engines.

C) TVs.

D) Brownies.

E) None of the above.

 

37. Forecasts can help a manager to:

A) anticipate the future.

B) develop strategies.

C) make staffing decisions.

D) All of the above.

E) None of the above.

 

38. In business, forecasts are the basis for:

A) sales planning.

B) inventory planning.

C) production planning.

D) budgeting.

E) All of the above.

 

39. Which of the following would not be a probable reason for choosing simulation as a decision-making tool?

A) The situation is too complex for a mathematical model.

B) There is a limited time in which to obtain results.

C) Good results have been obtained in the past using simulation.

D) Users are able to understand the model.

E) All of these are probable reasons for choosing simulation.

 

Use the following to answer question 40:

Refer to this frequency distribution and set of random numbers.

Demand

Frequency

--------

-----------

0

0.15

1

0.30

2

0.25

3

0.15

4

0.15

 

Random numbers: 0.6246, 0.2594, 0.4055

 

40. If a simulation begins with the first random number, the first simulated value would be:

A) 0.

B) 1.

C) 2.

D) 3.

E) 4.

 

41. A manager is simulating the number of times a machine operator stops a machine to make adjustments. After careful study the manager found that the number of stops ranged from one to five per cycle and that each number of stops was equally likely. Using the random numbers 0.1835 and 0.3094 (in that order), the next two simulated cycles would respectively have stops for adjustment of:

A) 2 and 2.

B) l and 2.

C) 2 and 1.

D) l and 1.

E) 2 and 3.

 

 

Use the following to answer questions 42-43:

On cold mornings, the probability that Davidís car wonít start is 0.22. When it doesnít start, he takes the bus and is late for work. When it does start, he drives to work on the freeway. Sixty-five percent of the time the freeway is clear, and he gets to work on time. The rest of the time he is late. Simulate 10 consecutive days worth of trips to work using the random numbers given (use the smaller numbers to represent "car wonít start" and "freeway clear").

Random numbers:

Car

Traffic

---

------

0.7772

0.2282

0.2902

0.3674

0.8120

0.1654

0.2259

0.6909

0.0527

0.7010

0.2958

0.9802

0.2891

0.5615

0.0131

0.5604

0.5219

0.4361

0.9949

0.1405

 

42. How many times is David late for work because his car wonít start?

A) 0.

B) 1.

C) 2.

D) 3.

E) 4.

 

43. How many times is David late for work?

A) 0.

B) 1.

C) 2.

D) 3.

E) 4.

 

44. In crashing a project, a manager will generally focus on activities which:

A) are not on the critical path.

B) are the least costly to crash.

C) are costly to crash and are on the critical path.

D) are on the critical path and are the least costly to crash.

E) None of the above.

 

45. If the variance of an activity duration is equal to 1 then all the durations are the same.

A) True

B) False

 

46. PERT/Cost is a systematic procedure to help a project manager bid on a project.

A) True

B) False

 

47. Once a project is underway, the project manager is responsible for effectively managing:

A) the people.

B) costs.

C) time.

D) a. and b.

E) a., b., and c.

 

48. Concerning PERT and CPM:

A) These are two different names for essentially the same technique.

B) CPM tends to focus more on the critical path.

C) PERT gives a better indication of activity slack, CPM a better picture of path slack.

D) Because of its recent discovery, much less is known about CPM that PERT.

E) All of the above are true.

 

49. PERT/CPM can answer which of the following questions?

A) When do activities need to start and finish to meet a deadline?

B) How much delay can be tolerated for certain activities?

C) Given uncertainties, what is the probability that a project will finish on time?

D) What is the least expensive way to expedite a project to meet a deadline?

E) All of the above.

 

50. The earliest start time for an activity is:

A) based on the length of the critical path.

B) determined by the maximum of the earliest finish times of its immediate predecessors.

C) determined by the maximum of the earliest finish times of its immediate successors.

D) the same as the latest start time of its immediate predecessor.

E) None of the above.

 

51. In a project network the critical path is the sequence of activities which has:

A) the most activities.

B) the fewest activities.

C) the most events.

D) the longest time.

E) the greatest variance.

 

52.

Given the portion of the network shown above, what is the earliest finish time for activity D, if the earliest start time of A is 12 and the earliest start time of B is 13?

A) 22.

B) 23.

C) 24.

D) 25.

E) 26.

 

53.

Given the portion of the network shown above, what is the latest start time of activity D if the latest finish of activity F is 26 and the latest finish of activity G is 23?

A) 3.

B) 4.

C) 9.

D) 10.

E) 12.

 

54. In project network analysis, slack refers to the difference between:

A) observed and predicted times.

B) optimistic and pessimistic times.

C) latest finish and latest start times.

D) earliest finish and earliest start times.

E) latest start and earliest start times.

 

55. Activity C has an early start time of 8, an early finish time of 12, a latest start time of 13, and a latest finish time of 17. Its slack is:

A) 0.

B) 1.

C) 4.

D) 5.

E) 9.

 

56. Given this information about activity H: ES = 10, EF = 15, LS = 16, and LF = 21, we can determine that the amount of slack associated with the activity is:

A) 0.

B) 1.

C) 5.

D) 6.

E) 11.

 

Use the following to answer questions 57-59:

Activity

Immediate Predecessors

Estimated Duration

   

(days)

A

-

5

B

-

5

C

-

8

D

C

4

E

A

5

F

B, D

10

G

C

10

 

57. The critical path is:

A) A-E.

B) B-F.

C) C-D-F.

D) C-G.

E) there are two critical paths.

 

58. The duration of the critical path is:

A) 11 days.

B) 20 days.

C) 18 days.

D) 22 days.

E) 15 days.

 

59. The path with the greatest slack is:

A) A-E.

B) B-F.

C) C-D-F.

D) C-G.

E) None of the above.

 

60. Which of the following is not a feature of PERT/CPM?

A) An estimate of how long a project will take.

B) A graphical display of project activities.

C) An indication of crucial activities.

D) An indication of slack time.

E) All are features.

 

61. Which of the following is a deficiency of PERT/CPM?

A) It provides only an estimate of how long a project will take.

B) It does not allow an activity to overlap with its immediate predecessors.

C) It does not address the important issue of how to allocate limited resources.

D) a. and b. only.

E) b. and c. only.

 

Use the following to answer questions 62-64:

62. The expected duration of this project is:

A) 12.

B) 17.

C) 20.

D) 36.

E) 77.

 

63. The critical path for the network shown is:

A) A-C-G.

B) A-D-F-G.

C) A-D-H-I.

D) B-E-F-G.

E) B-E-H-I.

 

64. The slack for path A-D-H-I is:

A) 0.

B) 3.

C) 4.

D) 7.

E) 8.

 

Use the following to answer questions 65-67:

 

Given this network:

65. The expected duration of this project is:

A) 13.

B) 15.

C) 20.

D) 52.

E) 81.

 

66. The critical path for the network shown is:

A) A-E-H.

B) B-H.

C) A-D-G.

D) C-F-H.

E) C-I-J.

 

67. The path with the greatest slack is:

A) A-E-H.

B) B-H.

C) A-D-G.

D) C-F-H.

E) C-I-J.

 

68. When finding the approximate probability of project duration, it is necessary to know which of the following?

A) The mean and variance of each activity.

B) The mean of each activity on the critical path.

C) The standard deviation of only the activities on the critical path.

D) Each activityís probability of completion.

E) The distribution of activity times.

 

69. The standard deviation of a path is computed as:

A) the sum of the standard deviations of all activities on the path.

B) the square root of the sum of the standard deviations of all activities on the path.

C) the sum of the variances of all activities on the path.

D) the square root of the sum of the variances of all activities on the path.

E) None of the above.

 

70. An important assumption in PERT calculations is:

A) activity durations are normally distributed.

B) activity durations are independent.

C) a computer will be available to do the calculations.

D) a. and b. only.

E) a. and c. only.

 

71. An activity has an optimistic time estimate of three days, a most likely time estimate of eight days, and a pessimistic time estimate often days. The expected duration of this activity is:

A) 7.0 days.

B) 7.5 days.

C) 8.0 days.

D) 8.5 days.

E) 10.0 days.

 

 

Use the following to answer questions 72-74:

Activity

Immediate Predecessor

Optimistic Estimate

Most Likely Estimate

Pessimistic Estimate

A

-

38

50

62

B

-

90

99

108

C

-

85

100

108

D

A

19

25

31

E

B

91

100

115

F

D

62

65

68

 

72. What is the estimated mean time for activity E?

A) 91 days.

B) 99 days.

C) 100 days.

D) 101 days.

E) 115 days.

 

73. What is the estimated slack time for activity A?

A) 0 days.

B) 20 days.

C) 40 days.

D) 60 days.

E) 100 days.

 

74. What is the probability that this project will be completed within 205 days?

A) 0.6826.

B) 0.8413.

C) 0.9544.

D) 0.9772.

E) 0.9987.

 

Use the following to answer questions 75-76:

Activity

Immediate Predecessor

Optimistic Estimate

Most Likely Estimate

Pessimistic Estimate

A

-

44

50

56

B

-

45

60

75

C

A

42

45

48

D

A, B

31

40

49

E

C

27

36

39

F

D, E

58

70

82

(time in days)

       

 

75. What is the estimated mean time for activity E?

A) 35 days.

B) 36 days.

C) 39 days.

D) 40 days.

E) 45 days.

 

76. What is the estimated slack time for activity D?

A) 0 days.

B) 30 days.

C) 40 days.

D) 50 days.

E) 100 days.

 

Use the following to answer questions 77-78:

Activity

Immediate

Predecessor

Optimistic

Estimate

Most Likely

Estimate

Pessimistic

Estimate

U

-

35

50

65

V

-

28

40

52

W

U,V

26

35

44

X

V

28

40

52

Y

X

26

29

38

Z

W,Y

36

60

84

(time in days)

 

 

 

 

77. What is the estimated mean time for activity Y?

A) 30 days.

B) 29 days.

C) 38 days.

D) 26 days.

E) 35 days.

 

78. What is the estimated slack time for activity W?

A) 0 days.

B) 25 days.

C) 35 days.

D) 45 days.

E) 85 days.

 

Use the following to answer question 79:

The production planner for Fine Coffees, Inc. produces two coffee blends: American (A) and British (B). He can only get 300 pounds of Colombian beans per week and 200 pounds of Dominican beans per week. Each pound of American blend coffee requires 12 ounces of Colombian beans and 4 ounces of Dominican beans, while a pound of British blend coffee uses 8 ounces of each type of bean. Profits for the American blend are $2.00 per pound, and profits for the British blend are $1.00 per pound.

 

79. What is the objective function?

A) .

B) .

C)

D) .

E) .

 

80. Transportation problems are concerned with distributing commodities from sources to destinations in such a way as to minimize the total distribution cost.

A) True

B) False

 

END OF EXAMINATION