Deck 1: Introduction

Question 1

The value of any model is that it enables the user to make inferences about the real situation.

Answer 1

True

Question 2

The most critical component in determining the success or failure of any quantitative approach to decision making is problem definition.

Answer 2

True

Question 3

In quantitative analysis,the optimal solution is the mathematically-best solution.

Answer 3

True

Question 4

A feasible solution is one that satisfies at least one of the constraints in the problem.

Question 5

If you are deciding to buy either machine A,B,or C with the objective of minimizing the sum of labor,material and utility costs,you are dealing with a single-criterion decision.

Question 6

The first step in the decision making process is to identify the problem.

Question 7

The feasible solution is the best solution possible for a mathematical model.

Question 8

Problem solving encompasses both the identification of a problem and the action to resolve it.

Question 9

The terms 'stochastic' and 'deterministic' have the same meaning in quantitative analysis.

Question 10

Model development should be left to quantitative analysts;the model user's involvement should begin at the implementation stage.

Question 11

Uncontrollable inputs are the decision variables for a model.

Question 12

The process of decision making is more limited than that of problem solving.

Question 13

The most successful quantitative analysis will separate the analyst from the managerial team until after the problem is fully structured.

Question 14

To find the choice that provides the highest profit and the fewest employees,apply a single-criterion decision process.

Question 15

A company seeks to maximize profit subject to limited availability of man-hours.Man-hours is a controllable input.

Question 16

All uncontrollable inputs or data must be specified before we can analyze the model and recommend a decision or solution for the problem.

Question 17

The decision making process includes implementation and evaluation of the decision.

Question 18

A toy train layout designed to represent an actual railyard is an example of an analog model.

Question 19

The volume that results in marginal revenue equaling marginal cost is called the break-even point.

Question 20

Frederick Taylor is credited with forming the first MS/OR interdisciplinary teams in the 1940's.

Question 21

George Dantzig is important in the history of management science because he developed

A)the scientific management revolution.
B)World War II operations research teams.
C)the simplex method for linear programming.
D)powerful digital computers.

Question 22

Decision alternatives

A)should be identified before decision criteria are established.
B)are limited to quantitative solutions
C)are evaluated as a part of the problem definition stage.
D)are best generated by brain-storming.

Question 23

The volume that results in total revenue being equal to total cost is the

A)break-even point.
B)marginal volume.
C)marginal cost.
D)profit mix.

Question 24

The first step in problem solving is

A)determination of the correct analytical solution procedure.
B)definition of decision variables.
C)the identification of a difference between the actual and desired state of affairs.
D)implementation.

Question 25

When the value of the output cannot be determined even if the value of the controllable input is known,the model is

A)analog.
B)digital.
C)stochastic.
D)deterministic.

Question 26

In a multicriteria decision problem

A)it is impossible to select a single decision alternative.
B)the decision maker must evaluate each alternative with respect to each criterion.
C)successive decisions must be made over time.
D)each of these choices are true.

Question 27

When production volume exceeds the breakeven point,we can expected​

A)​fixed cost to decrease
B)​a loss
C)​marginal revenue to decrease
D)​a profit

Question 28

A model that uses a system of symbols to represent a problem is called

A)mathematical.
B)iconic.
C)analog.
D)constrained.

Question 29

Decision criteria

A)are the choices faced by the decision maker.
B)are the problems faced by the decision maker.
C)are the ways to evaluate the choices faced by the decision maker.
D)must be unique for a problem.

Question 30

Management science and operations research both involve

A)qualitative managerial skills.
B)quantitative approaches to decision making.
C)operational management skills.
D)scientific research as opposed to applications.

Question 31

The field of management science

A)concentrates on the use of quantitative methods to assist in decision making.
B)approaches decision making rationally,with techniques based on the scientific method.
C)is another name for decision science and for operations research.
D)each of these choices are true.

Question 32

Identification and definition of a problem

A)cannot be done until alternatives are proposed.
B)is the first step of decision making.
C)is the final step of problem solving.
D)requires consideration of multiple criteria.

Question 33

Inputs to a quantitative model

A)are a trivial part of the problem solving process.
B)are uncertain for a stochastic model.
C)are uncontrollable for the decision variables.
D)must all be deterministic if the problem is to have a solution.

Question 34

The scientific management revolution of the early 1900s was initiated by​

A)​James Lingo
B)​Herbert Simon
C)​Frederic Taylor
D)​George Dantzig

Question 35

A physical model that does not have the same physical appearance as the object being modeled is

A)an analog model.
B)an iconic model.
C)a mathematical model.
D)a qualitative model.

Question 36

​Which of the following is not one of the commonly used names for the body of knowledge involving quantitative approaches to decision-making?

A)​management science
B)​business analytics
C)​operations research
D)​efficiency studies

Question 37

The decision variables of a model are also known as the​

A)​uncontrollable output
B)​controllable inputs
C)​environmental factors
D)​projected results

Question 38

A physical model that has the same physical appearance as the object being modeled is​

A)​an analog model
B)​an iconic model
C)​a mathematical model
D)​a deterministic model

Question 39

The quantitative analysis approach requires

A)the manager's prior experience with a similar problem.
B)a relatively uncomplicated problem.
C)mathematical expressions for the relationships.

Question 40

Problem definition

A)includes specific objectives and operating constraints.
B)must occur prior to the quantitative analysis process.
C)must involve the analyst and the user of the results.
D)each of these choices are true.

Question 41

Should the problem solving process be applied to all problems?

Question 42

​What are three of the management science techniques that practitioners use most frequently? How can the
effectiveness of these applications be increased?

Question 43

An author has received an advance against royalties of $10,000.The royalty rate is $1.00 for every book sold in the United States,and $1.35 for every book sold outside the United States.Define variables for this problem and write an expression that could be used to calculate the number of books to be sold to cover the advance.

Question 44

A manufacturer makes two products,doors and windows.Each must be processed through two work areas.Work area #1 has 60 hours of available production time per week.Work area #2 has 48 hours of available production time per week.Manufacturing of a door requires 4 hours in work area #1 and 2 hours in work area #2.Manufacturing of a window requires 2 hours in work area #1 and 4 hours in work area #2.Profit is $8 per door and $6 per window.
a.​Define decision variables that will tell how many units to build (doors and windows)per week.
b.Develop an objective function that will maximize total profit per week.
c.Develop production constraints for work area #1 and #2.

Question 45

A snack food manufacturer buys corn for tortilla chips from two cooperatives,one in Iowa and one in Illinois.The price per unit of the Iowa corn is $6.00 and the price per unit of the Illinois corn is $5.50.
a.Define variables that would tell how many units to purchase from each source.
b.Develop an objective function that would minimize the total cost.
c.The manufacturer needs at least 12000 units of corn.The Iowa cooperative can supply up to 8000 units,and the Illinois cooperative can supply at least 6000 units.Develop constraints for these conditions.

Question 46

Organizers of an Internet training session will charge participants $150 to attend.It costs $3000 to reserve the room,hire the instructor,bring in the equipment,and advertise.Assume it costs $25 per student for the organizers to provide the course materials.
a.How many students would have to attend for the company to break even?
b.If the trainers think,realistically,that 20 people will attend,then what price should be charged per person for the organization to break even?

Question 47

​Define and contrast the terms feasible solution,infeasible solution and optimal solution.

Question 48

Consider a department store that must make weekly shipments of a certain product from two different warehouses to four different stores.
a.How could a quantitative approach to decision making be used to solve this problem?
b.What would be the uncontrollable inputs for which data must be gathered?
c.What would be the decision variables of the mathematical model? the objective function? the constraints?
d.Is the model deterministic or stochastic?
e.Suggest assumptions that could be made to simplify the model.

Question 49

In this portion of an Excel spreadsheet,the user has given values for selling price,the costs,and a sample volume.Give the cell formula for
a.cell E12,break-even volume.
b.cell E16,total revenue.
c.cell E17,total cost.
d.cell E19,profit (loss).​

Question 50

As part of their application for a loan to buy Lakeside Farm,a property they hope to develop as a bed-and-breakfast operation,the prospective owners have projected:
​

a.Write the expression for total cost per month.Assume 30 days per month.
b.Write the expression for total revenue per month.
c.​If there are 12 guest rooms available,can they break even? What percentage of rooms would need to be occupied,on average,to break even?

Question 51

There is a fixed cost of $50,000 to start a production process.Once the process has begun,the variable cost per unit is $25.The revenue per unit is projected to be $45.
a.Write an expression for total cost.
b.Write an expression for total revenue.
c.Write an expression for total profit.
d.Find the break-even point.

Question 52

The relationship d = 5000 − 25p describes what happens to demand (d)as price (p)varies.Here,price can vary between $10 and $50.
a.How many units can be sold at the $10 price? How many can be sold at the $50 price?
b.Model the expression for total revenue.
c.Consider prices of $20,$30,and $40.Which of these three price alternative will maximize total revenue? What are the values for demand and revenue at this price?

Question 53

​What steps of the problem solving process are involved in decision making?

Question 54

​Explain the relationship among model development,model accuracy,and the ability to obtain a solution from a model.

Question 55

Zipco Printing operates a shop that has five printing machines.The machines differ in their capacities to perform various printing operations due to differences in the machines' designs and operator skill levels.At the start of the workday there are five printing jobs to schedule.The manager must decide what the job-machine assignments should be.
a.How could a quantitative approach to decision making be used to solve this problem?
b.What would be the uncontrollable inputs for which data must be collected?
c.Define the decision variables,objective function,and constraints to appear in the mathematical model.
d.Is the model deterministic or stochastic?
e.Suggest some simplifying assumptions for this problem.

Question 56

​Give three benefits of model development and an example of each.

Question 57

​Explain the difference between quantitative and qualitative analysis from the manager's point of view.

Question 58

A university schedules summer school courses based on anticipated enrollment.The cost for faculty compensation,laboratories,student services,and allocated overhead for a computer class is $8500.If students pay $920 to enroll in the course,how large would enrollment have to be for the university to break even?

Question 59

​Explain the relationship between information systems specialists and quantitative analysts in the solution of large
mathematical problems.

Question 60

​Define three forms of models and provide an example of each.

Question 61

​Explain the difference between controllable and uncontrollable inputs to a mathematical model and provide an
example of each.