Graded Homework

QUESTION 1

A baker uses organic flour from a local farmer in all of his baked goods. For each batch of bread (x₁), he uses 4 pounds of flour. For a batch of cookies (x₂), he uses 3 pounds, and for a batch of muffins (x₃) he uses 2 pounds. The local farmer can supply him with no more than 24 pounds per week. The constraint that represents this condition is:

	x1 8, x2 8, x38
	x1+ x2 + x324
	x1+ x2 + x3 24
	4x1+ 3x2 + 2x3 24

QUESTION 2

A difficult aspect of using spreadsheets to solve management science problems is

	obtaining the solution to standard management science problems.
	data entry.
	performing sensitivity analysis.
	setting up a spreadsheet with complex models and formulas.

QUESTION 3

A technique that assumes certainty in its solution is referred to as

	stochastic.
	probabilistic.
	deterministic.
	parametric.

QUESTION 4

Administrators at a university will charge students $150 to attend a seminar. It costs $3000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $25 per student for the administrators to provide the course materials. How many students would have to register for the seminar for the university to break even?

	18
	20
	24
	30

QUESTION 5

At the break-even point,

	total revenue equals total cost.
	profit is maximized.
	revenue is maximized.
	costs are minimized.

QUESTION 6

Decision analysis is a ________ technique.

	linear mathematical programming
	probabilistic
	network
	non-linear programming technique

QUESTION 7

EKA manufacturing company produces part #2206 for the aerospace industry. Each unit of part #2206 is sold for $15. The unit production cost of part #2206 is $3. The fixed monthly cost of operating the production facility is $3000. How many units of part #2206 have to be sold in a month to break even?

	166.67
	200
	250
	500

QUESTION 8

If fixed costs decrease, but variable cost and price remain the same, the break-even point

	decreases.
	increases.
	remains the same.
	may increase or decrease depending on sales.

QUESTION 9

If the price decreases, but fixed and variable costs do not change, the break-even point

	decreases
	increases
	remains the same
	may increase or decrease, depending on sales

QUESTION 10

It costs $50,000 to start a production process. Variable cost is $25 per unit and revenue is $45 per unit. What is the break-even point?

	1000 units
	1111 units
	2000 units
	2500 units

QUESTION 11

It’s time to buy pet food again and Lisa heads to the grocery store with $40 in her purse, leaving her seven hungry cats and four hungry dogs at home. Dog food costs $1 per can and cat food costs $0.50 per can. Dogs eat two full cans of food each day but cats eat only one can. Lisa would like to buy enough food to last through her three-day weekend. What is one appropriate constraint for this scenario?

	7C + 4D 3
	1C + 2D 40
	.5C + 1D 40
	7C + 4D 1.5

1 points

QUESTION 12

Linear mathematical programming techniques assume that all parameters in the models are

	known with certainty.
	unknown.
	predictable.
	unpredictable.

1 points

QUESTION 13

The components of break-even analysis are

	cost and profit.
	volume and cost.
	volume, cost and profit.
	volume and profit.

1 points

QUESTION 14

The earliest developments and use of management science techniques was in the field of

	military operations.
	railroads.
	politics.
	manufacturing.

1 points

QUESTION 15

The indicator that results in total revenues being equal to total cost is called the

	marginal cost.
	marginal volume.
	break-even point.
	profit mix.

1 points

QUESTION 16

The management science process does not include

	feedback.
	implementation.
	subjective preference.
	information.

QUESTION 17

The purpose of break-even analysis is to determine the number of units of a product to sell that will

	appeal to the consumer.
	result in a profit.
	result in a loss.
	result in zero profit.

1 points

QUESTION 18

The result of an effective decision making process should be monitored in order to

	reveal the break-even point.
	reveal errors in the implementation.
	keep fixed and variable costs distinct.
	change the scientific method.

1 points

QUESTION 19

The term ________ refers to testing how a problem solution reacts to changes in one or more of the model parameters.

	graphical solution
	decision analysis
	sensitivity analysis
	break-even analysis

1 points

QUESTION 20

Variable cost

	depends on the number of units produced.
	plus marginal cost equals fixed cost.
	is equal to total cost in deterministic models.
	is the same as average cost.

1 points

QUESTION 21

Which of the following is an equation or an inequality that expresses a resource restriction in a mathematical model?

	a decision variable
	an objective function
	a constraint
	a parameter

1 points

QUESTION 22

Which of the following statements is false?

	Decision models selectively describe the managerial situation.
	Decision models consider all factors from the real world.
	Decision models designate performance measures that reflect objectives.
	Decision models designate decision variables.

1 points

QUESTION 23

Which one of the following management science methods is not a probabilistic technique?

	assignment models
	decision analysis
	queuing analysis
	statistical analysis

1 points

QUESTION 24

Which steps of the management science process can either be a recommended decision or information that helps a manager make a decision?

	model implementation
	problem definition
	model solution
	problem formulation

1 points

QUESTION 25

________ are generally independent of the volume of units produced and sold.

	Fixed costs
	Variable costs
	Profits
	Average cost

1 points

QUESTION 26

________ involves determining the functional relationship between variables, parameters, and equations.

	Problem observation
	Problem definition
	Model construction
	Model solution

1 points

QUESTION 27

Larry’s Fish Market buys salmon (S) for $5 per pound and a local whitefish (W) for $3.50 per pound. Larry wants to minimize his cost, but he cannot spend more than $160. The objective function that minimizes these costs for Larry is:

	5S + 3.5W 160
	Min 5S + 3.5 W
	Max 5S + 3.5 W
	Min 5S + 3.5W 160

1 points

QUESTION 28

Classification of management science techniques does not recognize

	linear mathematical programming.
	probabilistic techniques.
	network techniques.
	computer programming.

QUESTION 29

A model is a functional relationship that includes:

	variables.
	parameters.
	equations.
	All of these

QUESTION 30

Which of these decision support systems is the most comprehensive with respect to an entire organization?

	an Excel spreadsheet
	an ERP
	QM for Windows
	OLAP