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Chapter 1—Introduction MULTIPLE CHOICE 1. The field of management science
ANS: D PTS: 1 TOP: Introduction 2. Identification and definition of a problem
ANS: B PTS: 1 TOP: Problem solving and decision making 3. Decision alternatives
ANS: A PTS: 1 TOP: Problem solving and decision making 4. Decision criteria
ANS: C PTS: 1 TOP: Problem solving and decision making 5. In a multicriteria decision problem
ANS: B PTS: 1 TOP: Problem solving and decision making 6. The quantitative analysis approach requires
ANS: C PTS: 1 TOP: Quantitative analysis and decision making 7. A physical model that does not have the same physical appearance as the object being modeled is
ANS: A PTS: 1 TOP: Model development 8. Inputs to a quantitative model
ANS: B PTS: 1 TOP: Model development 9. When the value of the output cannot be determined even if the value of the controllable input is known, the model is
ANS: C PTS: 1 TOP: Model development 10. The volume that results in total revenue being equal to total cost is the
ANS: A PTS: 1 TOP: Breakeven analysis 11. Management science and operations research both involve
ANS: B PTS: 1 TOP: Introduction 12. George Dantzig is important in the history of management science because he developed
ANS: C PTS: 1 TOP: Introduction 13. The first step in problem solving is
ANS: C PTS: 1 TOP: Problem solving and decision making 14. Problem definition
ANS: D PTS: 1 TOP: Quantitative analysis 15. A model that uses a system of symbols to represent a problem is called
ANS: A PTS: 1 TOP: Model development TRUE/FALSE 1. The process of decision making is more limited than that of problem solving. ANS: T PTS: 1 TOP: Problem solving and decision making 2. The terms 'stochastic' and 'deterministic' have the same meaning in quantitative analysis. ANS: F PTS: 1 TOP: Model development 3. The volume that results in marginal revenue equaling marginal cost is called the breakeven point. ANS: F PTS: 1 TOP: Problem solving and decision making 4. Problem solving encompasses both the identification of a problem and the action to resolve it. ANS: T PTS: 1 TOP: Problem solving and decision making 5. The decision making process includes implementation and evaluation of the decision. ANS: F PTS: 1 TOP: Problem solving and decision making 6. The most successful quantitative analysis will separate the analyst from the managerial team until after the problem is fully structured. ANS: F PTS: 1 TOP: Quantitative analysis 7. The value of any model is that it enables the user to make inferences about the real situation. ANS: T PTS: 1 TOP: Model development 8. Uncontrollable inputs are the decision variables for a model. ANS: F PTS: 1 TOP: Model development 9. The feasible solution is the best solution possible for a mathematical model. ANS: F PTS: 1 TOP: Model solution 10. A company seeks to maximize profit subject to limited availability of manhours. Manhours is a controllable input. ANS: F PTS: 1 TOP: Model development 11. Frederick Taylor is credited with forming the first MS/OR interdisciplinary teams in the 1940's. ANS: F PTS: 1 TOP: Introduction 12. To find the choice that provides the highest profit and the fewest employees, apply a singlecriterion decision process. ANS: F PTS: 1 TOP: Problem solving and decision making 13. The most critical component in determining the success or failure of any quantitative approach to decision making is problem definition. ANS: T PTS: 1 TOP: Quantitative analysis 14. The first step in the decision making process is to identify the problem. ANS: T PTS: 1 TOP: Introduction 15. All uncontrollable inputs or data must be specified before we can analyze the model and recommend a decision or solution for the problem. ANS: T PTS: 1 TOP: Quantitative analysis 16. In quantitative analysis, the optimal solution is the mathematicallybest solution. ANS: T PTS: 1 TOP: Quantitative analysis 17. 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 singlecriterion decision. ANS: T PTS: 1 TOP: Problem solving and decision making 18. Model development should be left to quantitative analysts; the model user's involvement should begin at the implementation stage. ANS: F PTS: 1 TOP: Problem solving and decision making 19. A feasible solution is one that satisfies at least one of the constraints in the problem. ANS: F PTS: 1 TOP: Model solution 20. A toy train layout designed to represent an actual railyard is an example of an analog model. ANS: F PTS: 1 TOP: Model development SHORT ANSWER 1. Should the problem solving process be applied to all problems? ANS: Answer not provided. PTS: 1 TOP: Problem solving and decision making 2. Explain the difference between quantitative and qualitative analysis from the manager's point of view. ANS: Answer not provided. PTS: 1 TOP: Quantitative analysis and decision making 3. Explain the relationship among model development, model accuracy, and the ability to obtain a solution from a model. ANS: Answer not provided. PTS: 1 TOP: Model solution 4. What are three of the management science techniques that practitioners use most frequently? How can the effectiveness of these applications be increased? ANS: Answer not provided. PTS: 1 TOP: Methods used most frequently 5. What steps of the problem solving process are involved in decision making? ANS: Answer not provided. PTS: 1 TOP: Introduction 6. Give three benefits of model development and an example of each. ANS: Answer not provided. PTS: 1 TOP: Model development 7. Explain the relationship between information systems specialists and quantitative analysts in the solution of large mathematical problems. ANS: Answer not provided. PTS: 1 TOP: Data preparation 8. Define and contrast the terms feasible solution, infeasible solution and optimal solution. ANS: Answer not provided. PTS: 1 TOP: Model solution 9. Define three forms of models and provide an example of each. ANS: Answer not provided. PTS: 1 TOP: Model development 10. Explain the difference between controllable and uncontrollable inputs to a mathematical model and provide an example of each. ANS: Answer not provided. PTS: 1 TOP: Model development PROBLEM 1. 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.
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PTS: 1 TOP: Model development 2. The relationship d = 5000 25p describes what happens to demand (d) as price (p) varies. Here, price can vary between $10 and $50.
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PTS: 1 TOP: Model development 3. 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.
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PTS: 1 TOP: Breakeven analysis 4. 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. ANS: Let x_{1} = the number of books sold in the U.S. Let x_{2} = the number of books sold outside the U.S. 10000 = 1x_{1} + 1.35x_{2} PTS: 1 TOP: Breakeven analysis 5. 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? ANS: Enrollment would need to be 10 students. PTS: 1 TOP: Breakeven analysis 6. As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bedandbreakfast operation, the prospective owners have projected:
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PTS: 1 TOP: Breakeven analysis 7. 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.
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PTS: 1 TOP: Breakeven analysis 8. 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
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PTS: 1 TOP: Spreadsheets for management science 9. A furniture store has set aside 800 square feet to display its sofas and chairs. Each sofa utilizes 50 sq. ft. and each chair utilizes 30 sq. ft. At least five sofas and at least five chairs are to be displayed.
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PTS: 1 TOP: Model development 10. 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.
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PTS: 1 TOP: Model development 11. A small firm builds galvanized swing sets. The investment in plant and equipment is $200,000. The variable cost per swing set is $500. The selling price of the swing set is $1000. How many swing sets would have to be sold for the firm to break even? ANS: 400 swing sets PTS: 1 TOP: Breakeven analysis 12. A computer rework center has the capacity to rework 300 computers per day. The expected number of computers needing to be reworked per day is 225. The center is paid $26 for each computer reworked. The fixed cost of renting the reworking equipment is $250 per day. Work space rents for $150 per day. The cost of material is $18 per computer and labor costs $3 per computer. What is the breakeven number of computers reworked per day? ANS: 80 computers PTS: 1 TOP: Breakeven analysis 13. To establish a driver education school, organizers must decide how many cars, instructors, and students to have. Costs are estimated as follows. Annual fixed costs to operate the school are $30,000. The annual cost per car is $3000. The annual cost per instructor is $11,000 and one instructor is needed for each car. Tuition for each student is $350. Let x be the number of cars and y be the number of students.
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PTS: 1 TOP: Breakeven analysis 14. 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 jobmachine assignments should be.
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PTS: 1 TOP: Model development 15. Consider a department store that must make weekly shipments of a certain product from two different warehouses to four different stores.
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PTS: 1 TOP: Model development 
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