Operations Management
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Course Introduction
Operations Management explores the principles, concepts, and techniques essential to the effective design, operation, and improvement of business processes and systems within manufacturing and service organizations. This course covers topics such as process design, capacity planning, quality management, inventory control, supply chain coordination, and lean operations. Students will analyze case studies and apply quantitative and qualitative methods to solve real-world operational challenges, focusing on optimizing efficiency, productivity, and customer satisfaction in a competitive business environment.
Recommended Textbook
Introduction to Management Science A Modeling and Case Studies 5th Edition by Hillier
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1064 Verified Questions
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Page 2
Chapter 1: Introduction
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Sample Questions
Q1) 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
Answer: True
Q2) A management science team will try to conduct a systematic investigation of a problem that includes careful data gathering,developing and testing hypotheses,and then applying sound logic in the analysis
A)True
B)False
Answer: True
Q3) A cost that varies with the production volume would be a variable cost
A)True
B)False
Answer: True
Q4) A cost that varies with the production volume would be a fixed cost
A)True
B)False
Answer: False
Page 3
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Chapter 2: Linear programming: Basic Concepts
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Sample Questions
Q1) 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)Nonnegativity constraints must be included
D)The objective function is called the objective cell
E)All of the above
Answer: E
Q2) Given the following 2 constraints,which solution is a feasible solution for a maximization problem?
A)(x<sub>1</sub>,x<sub>2</sub> )= (1,5)
B)(x<sub>1</sub>,x<sub>2</sub> )= (5,1)
C)(x<sub>1</sub>,x<sub>2</sub> )= (4,4)
D)(x<sub>1</sub>,x<sub>2</sub> )= (2,1)
E)(x<sub>1</sub>,x<sub>2</sub> )= (2,6)
Answer: D
Q3) The parameters of a model are the numbers in the data cells of a spreadsheet
A)True
B)False
Answer: True
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Chapter 3: Linear programming: Formulation and applications
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Sample Questions
Q1) Choosing the best tradeoff between cost and benefits is a managerial judgment decision
A)True
B)False
Answer: True
Q2) Cost-benefit tradeoff problems have the following type of constraints: A)
B) C)=
D)<
E)None of the above
Answer: A
Q3) Transportation problems always involve shipping goods from one location to another
A)True
B)False
Answer: False
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Page 5
Chapter 4: Theart of modeling with spread sheets
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Sample Questions
Q1) Which of the following tips can be helpful when you can't figure out what formula needs to be entered in an output cell?
A)Visualize where you want to finish
B)Test the model
C)Do some calculations by hand
D)Optimize the model
E)All of the above
Q2) Which of the following should be entered first when building a spreadsheet model?
A)The objective cell
B)The data cells
C)The changing cells
D)The output cells
E)The Solver parameters
Q3) An advantage of the long-term loan for Everglade is that it has a lower interest rate than the short-term loan
A)True
B)False
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6
Chapter 5: What-If Analysis for linear programming
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Sample Questions
Q1) When a change occurs in the right-hand side values of one of the constraints,a proportional change will occur in one of the coefficients of the objective function
A)True
B)False
Q2) The term "allowable range for an objective function coefficient" refers to a constraint's right-hand side quantity
A)True
B)False
Q3) If the right-hand side of Resource C changes to 130,then:
A)the original solution remains optimal
B)the problem must be resolved to find the optimal solution
C)the shadow price is valid
D)the shadow price is not valid
E)None of the above
Q4) Every change in the value of an objective function coefficient will lead to a changed optimal solution
A)True
B)False
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Chapter 6: Network optimization problems
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Sample Questions
Q1) For a minimum cost flow problem to have a feasible solution,which of the following must be true?
A)There is the same number of supply nodes and demand nodes
B)There is only one supply node and one demand node
C)There is an equal amount of supply and demand
D)The supply and demand must be integers
E)The transshipment nodes must be able to absorb flow
Q2) Which of the following is an example of a transshipment node?
A)Storage facilities
B)Processing facilities
C)Short-term investment options
D)Warehouses
E)All of the above
Q3) Shortest path problems are concerned with finding the shortest route through a network
A)True
B)False
Q4) A shortest path problem is required to have only a single destination
A)True
B)False
Page 8
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Chapter 7: Using binary integer programming to deal withy
es-Or-No decisions
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Sample Questions
Q1) BIP can be used in capital budgeting decisions to determine whether to invest a certain amount
A)True
B)False
Q2) If choosing one alternative from a group excludes choosing all of the others then these alternatives are called mutually exclusive
A)True
B)False
Q3) In a BIP problem,1 corresponds to a yes decision and 0 to a no decision If project A can be undertaken only if project B is also undertaken then the following constraint needs to be added to the formulation:
A)A + B 1
B)A + B = 1
C)A B
D)B A
E)None of the above
Q4) BIP can be used to determine the timing of activities
A)True
B)False
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Chapter 8: Non linear programming
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Sample Questions
Q1) If the data cells are in column D and the changing cells are in column C,which of the following are linear formulas in a spreadsheet?
A)SUMPRODUCT(D1:D6,C1:C6)
B)SUMPRODUCT(C1:C3,C4:C6)
C)SUM(C1:C6)
D)All of the above
E)a and c only
Q2) In problems where the objective is to minimize the total cost of the activities,an activity is said to have decreasing marginal returns if the slope of its cost graph never increases but sometimes decreases as the level of the activity increases
A)True
B)False
Q3) The measure of risk in a portfolio selection problem is called:
A)the covariance of the return
B)the variance of the return
C)the expected return
D)decreasing marginal return
E)None of the above
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Chapter 9: Decision Analysis
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Sample Questions
Q1) What is his expected value of perfect information?
A)$15,000
B)$61,000
C)$69,000
D)$72,000
E)$87,000
Q2) The maximum likelihood criterion says to focus on the largest payoff
A)True
B)False
Q3) Given that the research is not done,what is the expected payoff using Bayes' decision rule?
A)0
B)29
C)40
D)75
E)100
Q4) Two people who face the same problem and use the same decision-making methodology must always arrive at the same decision
A)True
B)False
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Chapter 10: Forecasting
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Sample Questions
Q1) The sales force composite method is a top-down approach to forecasting
A)True
B)False
Q2) The previous trend line has predicted 18,500 for two years ago,and 19,700 for last year What was the mean absolute deviation for these forecasts?
A)100
B)200
C)400
D)500
E)800
Q3) What is the forecast for this year using a moving-average forecast based on the last three years?
A)163
B)180
C)300
D)467
E)510
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Page 12
Chapter 11: Queuing models
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Sample Questions
Q1) What is the system utilization factor?
A)0 45
B)0 50
C)0 55
D)0 65
E)0 80
Q2) How many minutes does the average customer wait in line?
A)7
B)8
C)9
D)10
E)11
Q3) All single-server queueing models require the utilization factor to be less than 1 A)True
B)False
Q4) The number of customers in a system is the number in the queue plus one A)True
B)False
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Page 13
Chapter 12: Computer simulation: Basic Concepts
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Sample Questions
Q1) Simulation is often the first choice of decision makers instead of analytic models
A)True
B)False
Q2) A stochastic system is one that evolved over time according to a continuous probability distribution
A)True
B)False
Q3) When using a random number table,it is important to always start at the same point of the table so that results may be replicated
A)True
B)False
Q4) If a simulation begins with the first random number,the first simulated value would be: A)0
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Page 14
Chapter 13: Computer simulation with risks olver platform
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Sample Questions
Q1) Which of the following is a random input cell in RSPE?
A)An uncertain variable cell
B)A decision variable
C)A results cell
D)A statistic cell
E)None of the above
Q2) The number of trials is one of the options to be set in RSPE
A)True
B)False
Q3) The negative binomial distribution describes the number of trials until an event occurs n times
A)True
B)False
Q4) The normal distribution has a fixed upper and lower bound
A)True
B)False
Q5) The parameter analysis report in RSPE can be used to systematically investigate a set of values for a decision variable in a simulation model
A)True
B)False
15
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Chapter 14: Solution concepts for linear programming
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Sample Questions
Q1) The simplex method is the standard procedure for solving linear programming problems with any number of decision problems because:
A)it is an efficient procedure
B)spreadsheets are not always available
C)it provides the information necessary for what-if analysis
D)a and b only
E)a and c only
Q2) If a maximization problem has an objective function of 3x<sub>1</sub> + 2x<sub>2</sub>,which of the following corner points is the optimal solution?
A)(0,2)
B)(0,3)
C)(3,3)
D)(5,1)
E)(0,0)
Q3) The data given in Solver's sensitivity report are obtained directly from the output of the simplex method
A)True
B)False
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16
Chapter 15: Transportation and assignment problems
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Q1) 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
Q2) A network representation is helpful because it shows the geographical layout of the sources and destinations of a problem
A)True B)False
Q3) The transportation model assumes shipping cost per unit is the same regardless of the number of units shipped
A)True
B)False
Q4) When demand is not a fixed amount but a range,the problem cannot be formulated as a transportation problem
A)True B)False
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Page 17
Chapter 16: Pert CPM models for project management
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Sample Questions
Q1) Only activities on the critical path are initial candidates for crashing
A)True
B)False
Q2) What is the estimated slack time for activity W?
A)0 days
B)25 days
C)35 days
D)45 days
E)85 days
Q3) The path in a project network with the average duration is the critical path
A)True
B)False
Q4) The expected duration of this project is:
A)13
B)15
C)20
D)52
E)81
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Page 18
Chapter 17: Goal programming
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Sample Questions
Q1) In preemptive goal programming,the first step is to:
A)Minimize the weighted sum of deviations from the goals
B)Minimize the deviation from the most important goal
C)Meet the most important goal
D)Maximize the profit
E)None of the above
Q2) In preemptive goal programming,the objective cell is the weighted sum of the deviations from the goals
A)True
B)False
Q3) Preemptive goal programming is more appropriate the weighted goal programming when there are major differences in the importance of the goals
A)True
B)False
Q4) Goal programming provides a way of striving toward several objectives simultaneously
A)True
B)False
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Page 19
Chapter 18: Inventory management with known demand
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Sample Questions
Q1) Which of the following is not included in setup costs?
A)Typing up invoices
B)Moving delivered goods to temporary storage
C)Inspecting incoming goods for quality
D)Taking an inventory to determine how much is needed
E)Temporary storage of delivered goods
Q2) JIT refers to a production system in which goods arrive for processing just as the preceding batch is completed
A)True
B)False
Q3) Safety stock is held to meet anticipated need
A)True
B)False
Q4) Annual setup cost is a function of order size
A)True
B)False
Q5) Using the basic EOQ model,the higher an item's holding costs,the more frequently it will be ordered
A)True
B)False
20
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Chapter 19: Inventory management with uncertain demand
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Sample Questions
Q1) Customer service level and risk of a stockout are related
A)True
B)False
Q2) In a perishable products model,if shortage and excess costs are equal,then the optimum service level is:
A)0
B)0 33
C)0 5
D)0 67
E)1
Q3) Variability in demand and/or lead time can be compensated for by safety stock
A)True
B)False
Q4) The choice of the distribution to use as the demand distribution has little effect on the reorder point
A)True
B)False
Q5) Service level can be stated in terms of an order cycle or as an annual amount
A)True
B)False
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Chapter 20: Computer simulation with crystal ball
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Sample Questions
Q1) A trend chart shows the trend in profit values from trial to trial
A)True
B)False
Q2) OptQuest is guaranteed to find the optimal solution to a simulation problem
A)True
B)False
Q3) The binomial distribution describes the number of times an event occurs in a fixed number of trials
A)True
B)False
Q4) Which of the following provide the mean,median,standard deviation,range,etc for the forecast cell in Crystal Ball
A)Frequency chart
B)Statistics table
C)Percentiles table
D)Cumulative chart
E)Reverse cumulative chart
Q5) OptQuest can not handle constraints in a simulation model
A)True
B)False
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