Production and Operations Management Exam Review
Course Introduction
Production and Operations Management explores the fundamental principles and techniques required to effectively manage and improve the processes involved in producing goods and delivering services. The course covers topics such as process design, capacity planning, inventory control, quality management, supply chain coordination, and the integration of technology in operations. Students learn to analyze production systems, develop strategies for optimizing efficiency, and address challenges related to cost, quality, flexibility, and sustainability. Through case studies and real-world applications, the course equips students with practical skills to enhance organizational performance and competitiveness in both manufacturing and service sectors.
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Introduction to Management Science A Modeling and Case Studies Approach With Spreadsheets
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Chapter 1: Introduction
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Sample Questions
Q1) The objective function for a model is a mathematical expression of the measure of performance for the problem in terms of the decision variables.
A)True
B)False
Answer: True
Q2) At the break-even point,management is indifferent between producing a product and not producing it.
A)True
B)False
Answer: True
Q3) Spreadsheets allow many managers to conduct their own analyses in management science studies.
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
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Chapter 2: Linear Programming: Basic Concepts
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Sample Questions
Q1) Where are the output cells located?
A)B2:C2.
B)B2:C2,B5:C7,and F5:F7.
C)B10:C10.
D)F10.
E)None of the above.
Answer: E
Q2) Which of the following constitutes a simultaneous solution to the following 2 equations?
(1))3x<sub>1</sub> + 4x<sub>2</sub> = 10
(2))5x<sub>1</sub> + 4x<sub>2</sub> = 14
A)(x<sub>1</sub>,x<sub>2</sub> )= (2,0.5).
B)(x<sub>1</sub>,x<sub>2</sub> )= (4,0.5).
C)(x<sub>1</sub>,x<sub>2</sub> )= (2,1).
D)x<sub>1</sub> = x<sub>2</sub>.
E)x<sub>2</sub> = 2x<sub>1</sub>.
Answer: C
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Chapter 3: Linear Programming: Formulation and Applications
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Sample Questions
Q1) In linear programming formulations,it is possible to have the following types of constraints:
A)\(\le\).
B)>.
C)=.
D)a and c only.
E)All of the above.
Answer: D
Q2) Transportation problems always involve shipping goods from one location to another.
A)True
B)False Answer: False
Q3) Financial planning is one of the most important areas of application for cost-benefit-tradeoff problems.
A)True
B)False Answer: False
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Chapter 4: The Art of Modeling With Spreadsheets
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Sample Questions
Q1) Data should be repeated within every output cell as needed.
A)True
B)False
Q2) Each data value should be entered into how many cells?
A)0
B)1
C)2
D)3
E)The value should be entered into any formula in which it is needed.
Q3) Numbers should be included directly in formulas rather than entered separately in data cells in order to keep the spreadsheet model concise.
A)True
B)False
Q4) There is a systematic procedure that will lead to a single correct spreadsheet model.
A)True
B)False
Q5) Once the data is entered,it should never be moved.
A)True
B)False
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Chapter 5: What-If Analysis for Linear Programming
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Sample Questions
Q1) In a problem with 4 decision variables,the 100% rule indicates that each objective coefficient can be safely increase by what amount without invalidating the current optimal solution?
A)25%.
B)25% of the allowable increase of that coefficient.
C)100%.
D)25% of the range of optimality.
E)It can't be determined from the information given.
Q2) If the right-hand side of Resource B is increased by 30,and the right-hand side of Resource C is decreased by 10,then:
A)the optimal solution remains the same.
B)the optimal solution will change.
C)the shadow prices are valid.
D)the shadow prices may or may not be valid.
E)None of the above.
Q3) Managerial decisions regarding right-hand sides are often interrelated and so frequently are considered simultaneously.
A)True
B)False
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Chapter 6: Network Optimization Problems
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Sample Questions
Q1) Which of the following is not an assumption of a minimum cost flow problem?
A)At least one of the nodes is a supply node.
B)There is an equal number of supply and demand nodes.
C)Flow through an arc is only allowed in the direction indicated by the arrowhead.
D)The cost of the flow through each arc is proportional to the amount of that flow.
E)The objective is either to minimize the total cost or to maximize the total profit.
Q2) In a shortest path problem,the lines connecting the nodes are referred to as arcs.
A)True
B)False
Q3) Any node where the net amount of flow generated is fixed at zero is a transshipment node.
A)True
B)False
Q4) In a shortest path problem there are no arcs permitted,only links.
A)True
B)False
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Chapter 7: Using Binary Integer Programming to Deal With
Yes-Or-No Decisions
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Sample Questions
Q1) In a BIP problem with 3 mutually exclusive alternatives,x<sub>1</sub>,x<sub>2</sub>,and x<sub>3</sub>,the following constraint needs to be added to the formulation:
A)x<sub>1</sub> + x<sub>2</sub> +x<sub>3</sub> \(\le\) 1.
B)x<sub>1</sub> + x<sub>2</sub> +x<sub>3</sub> = 1.
C)x<sub>1</sub> - x<sub>2</sub> -x<sub>3</sub> \(\le\) 1. D)x<sub>1</sub> - x<sub>2</sub> -x<sub>3</sub>= 1.
E)None of the above.
Q2) Binary variables can have the following values:
A)0.
B)1.
C)any integer value.
D)a and b only.
E)All of the above.
Q3) BIP can be used to determine the timing of activities.
A)True
B)False
Q4) Variables whose only possible values are 0 and 1 are called integer variables.
A)True
B)False
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Chapter 8: Nonlinear 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 not linear formulas in a spreadsheet?
A)IF(D1 >= 6,C1,C2)
B)ROUND(C3)
C)ABS(C3)
D)All of the above.
E)b and c only.
Q2) Evolutionary Solver uses an algorithm based on genetics,evolution,and survival of the fittest.
A)True
B)False
Q3) Separable programming will always find the optimal solution when the following is true:
A)The profit or cost graph is piecewise linear.
B)There are decreasing marginal returns.
C)a and b must both be true.
D)Separable programming only finds an approximate solution.
E)None of the above.
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Chapter 9: Decision Analysis
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Sample Questions
Q1) What is the expected payoff for the decision to write the economics book?
A)50,000 copies.
B)40,000 copies.
C)32,000 copies.
D)30,500 copies.
E)10,500 copies.
Q2) What is the probability that the statistics book would wind up being placed with a smaller publisher?
A)0.6.
B)0.5.
C)0.4.
D)0.3.
E)0.
Q3) Payoff tables may include only non-negative numbers.
A)True
B)False
Q4) A posterior probability is a revised probability of a state of nature after doing a test or survey to refine the prior probability.
A)True
B)False
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Chapter 10: Cd Supplement - Decision Analysis
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Sample Questions
Q1) The Laplace criterion treats states of nature as being equally likely.
A)True
B)False
Q2) Determining the average payoff for each alternative and choosing the alternative with the highest average is the criterion called:
A)minimin.
B)maximin.
C)equally likely.
D)maximum likelihood.
E)Bayes decision rule.
Q3) The maximum likelihood criterion ignores the payoffs for states of nature other than the most likely one.
A)True
B)False
Q4) The maximin criterion refers to:
A)minimizing the maximum return.
B)maximizing the minimum return.
C)choosing the alternative with the highest payoff.
D)choosing the alternative with the minimum payoff.
E)None of the above.
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Chapter 11: Forecasting
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Sample Questions
Q1) An advantage of the exponential smoothing forecasting method is that more recent experience is given more weight than less recent experience.
A)True
B)False
Q2) Given an actual latest demand of 105,a previous forecast of 97,and \(\alpha\) = 0.4,what would be the forecast for the next period using the exponential smoothing method?
A)80.8.
B)93.8.
C)100.2.
D)101.8.
E)108.2.
Q3) What is the forecast for this year using a moving-average forecast based on the last four years?
A)18,750.
B)19,500.
C)21,000.
D)22,650.
E)22,800.
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Chapter 12: Queueing Models
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Sample Questions
Q1) What is the minimum number of clerks needed to keep the average time in the system under 5 minutes?
A)2.
B)3.
C)4.
D)5.
E)6.
Q2) What is the minimum number of servers needed to keep the average time in the system under 6 minutes?
A)2.
B)3.
C)4.
D)5.
E)6.
Q3) Queueing models enable finding an appropriate balance between the cost of service and the amount of waiting.
A)True
B)False
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Chapter 13: CD Supplement - Additional Queueing Models
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Q1) The Erlang distribution with k = 4 has higher variability than the Erlang distribution with k = 2.
Multiple Choice Questions
A)True
B)False
Q2) The finite calling population queueing model is appropriate when the potential calling population is relatively small.
A)True
B)False
Q3) When designing a queueing system with a finite queue,one important decision is how much waiting room to provide.
A)True
B)False
Q4) Given the same utilization factor,waiting time in the queue will be less for a finite queue than the corresponding value for the M/M/s model.
A)True
B)False
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Chapter 14: Computer Simulation: Basic Concepts
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Sample Questions
Q1) It is always necessary to test the validity of a simulation model by comparing its results with those of an analytic study.
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) Simulation enables a decision maker to experiment with a system and observe its behavior.
A)True
B)False
Q4) A simulation model is often formulated in terms of a flow diagram.
A)True
B)False
Q5) A simulation model is validated if it adequately depicts real system performance.
A)True B)False
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Chapter 15: CD Supplement - the Inverse Transformation
Method for Generating Random Observations
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Sample Questions
Q1) The inverse transformation method can be used to generate random observations from a probability distribution.
A)True
B)False
Q2) Excel's RAND()function is designed specifically for applying the inverse transformation method to any discreet probability distribution.
A)True
B)False
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Chapter 16: Computer Simulation With Crystal Ball
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Sample Questions
Q1) The triangular distribution has a fixed upper and lower bound.
A)True
B)False
Q2) Which of the following is not a characteristic of the uniform distribution?
A)It has a fixed minimum value.
B)It has a fixed maximum value.
C)Some value is the most likely.
D)All of the above are characteristic of the uniform distribution.
E)None of the above are characteristic of the uniform distribution.
Q3) The geometric distribution describes the number of times an event occurs in a fixed number of trials.
A)True
B)False
Q4) Which of the following distributions describes the number of trials until an event occurs n times?
A)Binomial distribution.
B)Geometric distribution.
C)Negative binomial distribution.
D)Poisson distribution.
E)None of the above.
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Chapter 17: CD - Solution Concepts for Linear Programming
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Sample Questions
Q1) A linear programming problem can have multiple optimal solutions.
A)True
B)False
Q2) The enumeration-of-corner-points method is limited because it can only solve problems with two decision variables.
A)True
B)False
Q3) An optimal solution must lie on the boundary of the feasible region.
A)True
B)False
Q4) Interior-point algorithms:
A)are far more complicated than the simplex method.
B)require more computation time per iteration that the simplex method.
C)tend to be much faster than the simplex method for huge problems.
D)All of the above.
E)a and b only.
Q5) If a problem is infeasible,the Solver will show the message "Set Cell values do not converge".
A)True
B)False
19
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Chapter 18: CD - Transportation and Assignment Problems
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Sample Questions
Q1) Which of the following problems can be reformulated to fit the format for a transportation problem?
A)Certain source-destination combinations cannot be used for distributing units.
B)A destination has both a minimum and maximum demand.
C)The sum of the supplies exceeds the sum of the demands.
D)a and b only.
E)All of the above.
Q2) Many problems can be reformulated to fit the format of an assignment problem.
A)True
B)False
Q3) A network representation is an important tool for solving any size transportation problem.
A)True B)False
Q4) Network representation provides a way of visualizing an assignment problem graphically.
A)True
B)False
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Chapter 19: CD - Pertcpm Models for Project Management
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Sample Questions
Q1) 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.
Q2) The duration of the critical path is:
A)11 days.
B)20 days.
C)18 days.
D)22 days.
E)15 days.
Q3) 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.
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Chapter 20: CD - 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) The overall objective for a goal programming problem is to minimize the weighted sum of deviations of the objective functions from their respective goals.
A)True
B)False
Q3) In goal programming,constraints are used to assure that every goal is met.
A)True
B)False
Q4) In preemptive goal programming,the goals are ranked from most important to least important.
A)True
B)False
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Chapter 21: CD - Inventory Management With Known Demand
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Sample Questions
Q1) 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.
Q2) Interest,insurance,and opportunity costs are all associated with holding costs.
A)True
B)False
Q3) In the basic EOQ model,if usage and production/delivery rates are equal,there will be no inventory buildup,and thus the order quantity cannot be calculated.
A)True
B)False
Q4) Using the EOQ model,if an item's holding cost increases,it will be ordered more frequently.
A)True
B)False
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Chapter 22: CD - Inventory Management With Uncertain Demand
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Sample Questions
Q1) The cost of overordering is the decrease in profit that results from failing to order a unit that could have been sold during the period.
A)True
B)False
Q2) The perishable product model can be very helpful in determining how much to order.
A)True
B)False
Q3) Which inventory model is most appropriate if unused or unsold items cannot be carried over to subsequent periods?
A)EOQ.
B)Continuous review.
C)Perishable product.
D)Quantity discounts.
E)(R,Q).
Q4) Customer service level and risk of a stockout are related.
A)True
B)False
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