a. increase by 60%

b. increase by 40%

c. decrease by 60%

d. cannot tell from information

2. Suppose that we determine the probability of a warm
winter based on the number of warm winters experienced over the past 10 years,
in this case we have used (please explain)

a. relative frequency

b. classical method

c. logical method

d. subjective probability

3. Assume that you have tried three different forecasting
models. For the first, the MAD = 2.5, for the second, the MSE = 10.5, and for
the third, the MAPE = 2.7. We can then say:

a. the third method is the best.

b. the second method is the best.

c. method two is least preferred.

d. none of the above

4. For the basic EOQ model, which of the following
relationships is not true:

a. the optimal number of orders per year equals annual
demand divided by the EOQ

b. the reorder point equals daily demand times the lead time
in days

c. average inventory levels equals one half the order size

d. the average dollar level of inventory equals unit price
times order quantity

5. Which of the following is a technique used to determine
forecasting accuracy

a. the optimal number of orders per year equals annual
demand divided by the EOQ

b. the reorder point = daily demand times the lead time in
days

c. average inventory = ½ the order size

d. average dollar of inventory = unit price times order
quantity

6. The use of LP in solving assignment problems yields what
kind of solutions?

a. redundant

b. unbounded

c. either -1 or 1 for each variable

d. either 0 or 1 for each variable

7. infeasibility in a linear programming problem occurs when

a. there is an infinite solution

b. constraint is redundant

c. more than one solution is equal

d. there is no solution that satisfies all the constraints
given

8. Which of the following problem types is such a special
case of linear programming that a special algorithm developed to solve it?

a. production mix problem

b. assignment problem

c. ingredient mix problem

d. media selection problem

9. Linear programming is used by managers involved in
portfolio selection to

a. maximize return on investment

b. maximize investment limitations

c. maximize risk

d. minimize risk

10. The selection of specific medial from among a wide
variety of alternatives is the type of LP problem known as:

a. production mix

b. investment banker problem

c. wall street problem

d. an effective media mix

11. Explain how a multiple optimal solution is recognized
when using the simplex algorithm (what is this?

12. Transportation models can be used for which of the
following decisions

a. Facility
location

b. Production
mix

c. Media
selection

d. Portfolio
selection

13. Goal programming is characterized by

a. All
maximization problems

b. Setting
of lower and upper bounds

c. The
deviation from a high priority goal must be minimized before the next highest
priority goal may be considered

d. maximizing
as in LP

14. Which of the following statements is true comparing the
transportation and assignment algorithms to the simplex algorithm?

a. Similar
computational effort, faster, and similar computer memory usage

b. Less
computational effort, similar speed, and less computer memory usage

c. Less
computational effort, faster and similar computer memory usage

d. Less
computational effort, faster and less computer memory usage

15.The most common objectives for the assignment problem are
the minimization of ___________

a. Uncertainty
or inexperience

b. Total
costs or inexperience

c. Total
costs or total line

d. Total
time or inexperience

16. Which of the following accurately describes steps of the
northwest corner rule, after making the initial allocation of units in the
northwest cell?

a. Move down
first, and then move right

b. Move
right first and then move down

c. Move
right or down first, depending on whether the demand requirement or the supply
capacity respectively, is exhausted first

d. Move
right or down first, depending on whether the supply capacity or the demand
requirement ,respectively is exhausted first

17. The branch and bound method is often used when

a. Linear
programming problems cannot be graphically solved

b. There are
fewer than three variables

c. One or
more variables are negative

d. Solving
integer programming problems

18. A transportation problem is not

a. Is a
special case of the linear programming problem

b. Can be
solved by linear programming, but is solved more efficiently by a special
purpose algorithm

c. May give
an initial feasible solution rather than the optimal solution

d. Used to
determine facility locations

Describe a transportation problem. The assignment problem is
a special case of the transportation problem. So, then, why is it not
recommended to use the transportation algorithm to solve the assignment
problem?

Executive Furniture Corporation which manufactures office
desks at three locations: Des Moines, Evansville and Ft Lauderdale. The firm
distributes the desks through regional warehouses located in Albuquerque,
Boston and Cleveland. An estimate of the monthly production capacity at each
factory and an estimate of the number of desks that are needed each month at
each of the three warehouses is as shown:

FACTORIES WAREHOUSES

(sources) (Destinations)

100 units Des Moines Albuquerque 300 units

300 units Evansville Boston 200 units

300 units Ft Lauderdale Cleveland 200 units

Capacities shipping results requirements

The firm has found that production costs per desk are
identical at each factory, and hence the only relevant costs are show in the
table above. They are assumed to be constant regardless of the volume shipped.
(chapter 10 Transportation and Assignment Models, Quantitative Analysis for
Management, 10th Edition, Barry Render).