MGMT 430 Exam II 1. The problem which deals with the distribution of goods from several sources to several destinations is the maximal flow problem transportation problem assignment problem shortest-route problem 2. Lines that connect locations in a production and distribution model are: a. Arcs b. Point of Sales C. Manufacturing locations d. Inventory storage 3. The parts of a network that represent the origins are a. the capacities the flows the nodes the arcs 4. The objective of the transportation problem is to identify one origin that can satisfy total demand at the destinations and at the same time minimize total shipping cost. minimize the number of origins used to satisfy total demand at the destinations. minimize the number of shipments necessary to satisfy total demand at the destinations. minimize the cost of shipping products from several origins to several destinations. 5. If we need to add a node to make supply equal to demand, the node is considered a: a. Shortage storage b. Surplus storage C. Dummy origin d. Supply chain 6. All interconnected resources involved in production and distribution of a product is considered the a. Inventory b. Supply Chain c. Destination point d. Point of Origin 7. The network flows into and out of demand nodes are what makes the production and inventory application modeled in the textbook a a shortest-route model. b maximal flow model. C. transportation model transshipment modelMGMT 430 Exam II 8.. Arcs in a transshipment problem a. must connect every node to a transshipment node. represent the cost of shipments. indicate the direction of the flow. must equal the supply. 9. Constraints in a transshipment problem a. correspond to arcs. include a variable for every arc. C. require the sum of the shipments out of an origin node to equal supply. Are the sum of the nodes. 10. In a transshipment problem, shipments a. cannot occur between two origin nodes. cannot occur between an origin node and a destination node. cannot occur between a transshipment node and a destination node. can occur between any two nodes. 11. Rounded solutions to linear programs must be evaluated for a. feasibility and optimality. b. sensitivity and duality. C. relaxation and boundedness. Upward and downward relaxation. 12. The solution to the LP Relaxation of a maximization integer linear program provides a. an upper bound for the value of the objective function. a lower bound for the value of the objective function. C. an upper bound for the value of the decision variables d a lower bound for the value of the decision variablesMGMT 430 Exam II 13. In an all-integer linear program, a. all objective function coefficients must be integer. all right-hand side values must be integer. all variables must be integer. all objective function coefficients and right-hand side values must be integer. 14. Which of the following applications modeled in the textbook does not involve only 0 - 1 integer variables? supply chain design bank location capital budgeting product design and market share optimization 15. An integer is: a. a fraction b. a decimal c. not null d. a negative or positive whole number 16. A fixed cost is: a. A total cost that changes based on use b. A total cost that does not change based on use. C. A total cost that has a base cost and a usage cost. D. the sum of variables represented by k. 17. A constraint that requires the sum of two or more binary integer to be equal to I is considered a : a. Mutually Exclusive Constraint b. Multiple Choice Constraint c. Conditional Constraint d. Co-Requisite Constraint 18. If one constraint must be equal to another constraint in a binary Integer Model, the constraint is considered a: a. Mutually Exclusive Constraint b. Multiple Choice Constraint c. Conditional Constraint d. Co-Requisite Constraint 19. A 0-1 variable is know as: a. An integer constraint b. A binary integer c. A feasible constraint d. An optimal relaxed constraint 20. If a variable in a binary integer model that requires the constraint to be equal to another constraint, the constraint is considered a: a. Mutually Exclusive Constraint b. Multiple Choice Constraint MGMT 430 Exam II c. Conditional Constraint d. Co-Requisite Constraint21. Which of the following is incorrect? a. A global optimum is a local optimum in a nonlinear optimization problem. A local maximum is a global maximum in a concave nonlinear optimization problem. C. A global minimum is a local minimum in a convex nonlinear optimization problem. A local optimum is a global optimum in a nonlinear optimization problem. 22. The measure of risk most often associated with the Markowitz portfolio model is the a. portfolio average return. portfolio minimum return. portfolio variance. portfolio standard deviation. 23. A concave function f(x) is: a. bowl-shaped up. bowl-shaped down. elliptical in shape sinusoidal in shape. 24. A convex function f(x) is bowl-shaped up. bowl-shaped down. elliptical in shape. sinusoidal in shape. 25. In order to use the quadratic formula, a function must be in the following format. a. a- + b- = 02 b. A = x72 ax'+bx + c Y - mx + b 26. Components that share a storage facility are called a. constrained components. indexed components. Optimized components. pooled components. 27. Solution that are outside the optimal solution function are known as: a. Globally Optimized b. Indexed c. Locally Optimized d. Non - Linear 28. Solutions that are inside the optimal solution function are known as: a. Globally Optimized b. Indexed c. Locally Optimized d. Non-LinearMGMT 430 Exam Il 29. A graphical model showcasing a network based schedule of activities and their relationships is know as a: a. Pie Chart b. Bar Chart c. An Index Chart d. PERT Chart 30. Activities in a PERT Chart are displayed as: a. Arcs b. Start Times c. Nodes d. Finish Times 31. Which is not a significant challenge of project scheduling? a. deadlines exist. 5 activities are independent. many employees could be required. delays are costly. 32. Arcs in a project network indicate a. completion times. Predecessors / successor relationships. activities. the critical path. 33. A node that is required to complete before the next node is considered a: a. Predecessor / Prerequisite activity b. Successor activity C. Critical Activity d. An Independent Activity 34. A node that occurs after an activity is considered a: a. Predecessor / Prerequisite activity b. Successor activity c. Critical Activity d. An Independent Activity 35. The critical path is any path that goes from the starting node to the completion node. is a combination of all paths. is the shortest path. is the longest path. 36. Activities G, P, and R are the immediate predecessors for activity W. If the earliest finish times for the three are 12, 15, and 10, then the earliest start time for W is 10. is 12. is 15. is 5.37. Expected Times are a. Minimum activity duration MGMT 430 Exam II b. Maximum Activity duration c. Occur Most of the time under normal conditions. d. Average Activity Duration 38. Pessimistic Times are: a. Minimum activity duration b. Maximum Activity duration c. Occur Most of the time under normal conditions. d. Average Activity Duration 39. Optimistic time are: a. Minimum activity duration b. Maximum Activity duration c. Occur Most of the time under normal conditions. d. Average Activity Duration 40.Probable times are: a. Minimum activity duration b. Maximum Activity duration c. Occur Most of the time under normal conditions. d. Average Activity Duration 41. Inventory a. is held against uncertain usage so that a supply of items is available if needed. b. constitutes a small part of the cost of doing business. C. is not something that can be managed effectively includes transportation. 42. Inventory models in which the rate of demand is constant are called a. fixed models. deterministic models. C . JIT models. requirements models. 43. The EOQ model determines only how frequently to order. considers total cost. minimizes both ordering and holding costs. determines inventory capacity. 44. Which cost would not be considered part of a holding cost? a. cost of capital shipping cost insurance cost warehouse overhead45. Annual purchase cost is included in the total cost in a. the EOQ model. the economic production lot size model. the quantity discount model. all inventory models. 46. Inventory position is defined as the amount of inventory on hand in excess of expected demand. the amount of inventory on hand. the amount of inventory on hand plus the amount of inventory on order. Includes historical models. 47.The time it takes to receive an order once requested is known as: a. Holding Time b. Lead Time c. Cycle Time d. Set Up Time 48. The objective of the EOQ with quantity discounts model is to a. determine the minimum order quantity required for the maximum discount. balance annual ordering and holding costs. minimize annual purchase cost. minimize the sum of annual carrying, holding, and purchase costs. 49. For the EOQ model, cycle time is the time between a. placing successive orders b. placing and receiving an order c. stocking out and receiving an order d. receiving and storing an order 50. Inventory Models with constant demands are known as: a. Efficiency Models b. Forecasting Models c. Deterministic Models d. Probabilistic Models 51. Inventory Models where demand is not known are known as: a. Efficiency Models b. Forecasting Models c. Deterministic Models d. Probabilistic models52. Simulation does not guarantee optimality. is fixed and does not require the assumptions of theoretical models. allows high cost of production and marketing is risky and dangerous 53. The process of determining that the computer procedure that performs the simulation calculations is logically correct and accurate is called a. implementation. validation. verification. repetition. 54. Numerical values that appear in the mathematical relationships of a model and are considered known and remain constant over all trials of a simulation are a. parameters. probabilistic input. controllable input. events. 55. The word "uniform" in the term "uniform random numbers" means all the numbers have the same number of digits. b. if one number is, say, 10 units above the mean, the next number will be 10 units below the mean. C. all the numbers are odd or all are even. each number has an equal probability of being drawn. 56. A graphical tool that helps describe the logic of the simulation model is a Gantt chart. histogram. Decision Tree flowchart. PERT Chart. 57. Simulation can be used for a.. Resource Hiring b. Forecasting c. Inventory Control d. Lead Time Generation 58. Experimenting with a model to help learn the characteristic of a mathematical model is known as: a. Problem Resolution b. Deterministic Value c. Trial and Error d. Simulation 59. Predicting the outcome of a decision and avoiding potential issues when uncertain is considered: a. Problem Solutioning b. Risk Analysis c. Feasibility d. Optimal Insurance60. Validation : MIGMT 430 Exam Il a. Insures accurate representation of a system b. Insures quality c. Is error free d. Is determined by the expected value