Test Item File
Martha Wilson
Introduction to
Management Science
Bernard W. Taylor III
Contents
Chapter 1 Management Science 1
Chapter 2 Linear Programming: Model Formulation and Graphical Solution
Chapter 3 Linear Programming: Computer Solution and Sensitivity Analysis
Chapter 4 Linear Programming: Modeling Examples 74
Chapter 5 Integer Programming 96
Chapter 6 Transportation, Transshipment, and Assignment Problems 120
Chapter 7 Network Flow Models 144
Chapter 8 Project Management 169
Chapter 9 Multicriteria Decision Making 195
Chapter 10 Nonlinear Programming 222
Chapter 11 Probability and Statistics 235
Chapter 12 Decision Analysis 265
Chapter 13 Queuing Analysis 297
Chapter 14 Simulation 320
Chapter 15 Forecasting 347
Chapter 16 Inventory Management 377
Module A The Simplex Solution Method 406
Module B Transportation and Assignment Solution Methods 426
Module C Integer Programming: The Branch and Bound Method 447
Module D Nonlinear Programming: Solution Techniques 462
Module E Game Theory 473
Module F Markov Analysis 488
Problem difficulty levels are represented as:
Diff 1 - Easy
Diff 2 - Moderate
Diff 3 - Difficult
Chapter 1
Management Science
True/False
1) Management science involves the philosophy of approaching a problem
manner.
Answer: FALSE
Diff: 1
Key words: scientific approach
2) Management science encompasses a logical approach to problem solvin
Answer: TRUE
Diff: 1
Key words: scientific approach, problem solving
3) Once management scientist makes his or her decision and recommenda
then typically, his or her involvement with the problem is finished.
Answer: FALSE
Diff: 2
Key words: management science, management scientist
4) A variable is a symbol used to represent an item that can take on any va
Answer: TRUE
,Answer: TRUE
Diff: 1
Key words: solution, management science solution
10) Management science modeling techniques provide results that are kno
Answer: FALSE
Diff: 2
Key words: management science modeling techniques, certainty
11) A constraint represents the limitation of management science techniqu
Answer: FALSE
Diff: 2
Key words: constraints, management science techniques
12) The term decision analysis refers to testing how a problem solution rea
more of the model parameters.
Answer: FALSE
Diff: 1
Key words: sensitivity analysis, parameter changes
13) Fixed costs depend on the number of items produced.
Answer: FALSE
Diff: 1
Key words: fixed cost, break-even analysis
14) Variable costs are independent of volume and remain constant.
Answer: FALSE
Diff: 1
Key words: variable cost, break-even analysis
15) Total cost equals the fixed cost plus the variable cost per unit divided b
Answer: FALSE
Diff: 1
Key words: total cost, break-even analysis
2
Management Science - Chapter 1
16) Profit is the difference between total revenue and total cost.
Answer: TRUE
Diff: 1
Key words: profit, break-even analysis
17) The break-even point is the volume that equates total revenue with tot
zero.
Answer: TRUE
Diff: 1
Key words: break-even analysis
18) In general, an increase in price increases the break even point if all cos
Answer: FALSE
Diff: 1
Key words: break-even analysis
19) If variable costs increase, but price and fixed costs are held constant, t
decrease.
Answer: FALSE
Diff: 2
Key words: break-even analysis
20) Managers utilize spreadsheets to conduct their own analyses in manag
Answer: TRUE
Diff: 2
,Answer: variable
Diff: 1
Key words: variable, management science process
25) __________ are unknown, constant values that are not coefficients of va
Answer: Parameters
Diff: 1
Key words: model, parameters
26) __________ are pieces of information from the problem environment.
Answer: Data
Diff: 1
Key words: data
27) A __________ is a functional relationship including variables, parameters
Answer: model
Diff: 1
Key words: model
28) __________ techniques consist of models that are represented as diagra
pictorial representation of the system being analyzed.
Answer: Network
Diff: 1
Key words: management science, networks
29) __________ techniques provide results that contain uncertainty, unlike m
programming techniques which are deterministic.
Answer: Probabilistic
Diff: 1
Key words: management science techniques, probabilistic techniques
4
Management Science - Chapter 1
30) __________ are independent of volume of goods produced and remain c
Answer: Fixed costs
Diff: 1
Key words: fixed cost, break-even analysis
31) __________ depend on the number of items produced.
Answer: Variable costs
Diff: 1
Key words: variable cost, break-even analysis
32) __________ is the difference between total revenue and total cost.
Answer: Profit
Diff: 1
Key words: profit, break-even analysis
33) The __________ is the volume that equates total revenue with total cost
Answer: break-even point
Diff: 1
Key words: break-even analysis
34) A __________ represents a limitation to achieving maximum profits due
Answer: constraint
Diff: 1
Key words: constraint, model development
35) The __________ can be noted as Z, and represents the goal of the firm.
Answer: objective function
Diff: 1
Key words: objective function, model development
, Answer: R(x) = 45x
Diff: 1
Key words: break-even analysis
40) There is a fixed cost of $50,000 to start a production process. Once the
variable cost per unit is $25. The revenue per unit is projected to be $45. W
for total profit.
Answer: P(x) = 45x - (50000 + 25x)
Diff: 1
Key words: break-even analysis
41) There is a fixed cost of $50,000 to start a production process. Once the
variable cost per unit is $25. The revenue per unit is projected to be $45. F
point.
Answer: X = 2500
Diff: 2
Key words: break-even analysis
42) Administrators at a university will charge students $150 to attend a se
reserve a room, hire an instructor, and bring in the equipment. Assume it c
for the administrators to provide the course materials. How many students
register for the seminar for the university to break even?
Answer: 24
Diff: 2
Key words: break-even analysis
43) Administrators at a university are planning to offer a summer seminar.
reserve a room, hire an instructor, and bring in the equipment. Assume it c
for the administrators to provide the course materials. If we know that 20 p
what price should be charged per person to break even?
Answer: $175
Diff: 2
Key words: break-even analysis
6
Management Science - Chapter 1
44) A newly opened bed-and-breakfast projects the following:
Monthly fixed costs $6000
Variable cost per occupied room per night $20
Revenue per occupied room per night $75
Write the expression for total cost per month (30 days).
Answer: C(x) = 6000 + 20(30)x
Diff: 2
Key words: break-even analysis
45) A newly opened bed-and-breakfast projects the following:
Monthly fixed costs $6000
Variable cost per occupied room per night $20
Revenue per occupied room per night $75
Write the expression for total revenue per month (30 days).
Answer: R(x) = 75(30)x
Diff: 2
Key words: break-even analysis
46) A newly opened bed-and-breakfast projects the following:
Monthly fixed costs $6000
Variable cost per occupied room per night $20
Revenue per occupied room per night $75
Martha Wilson
Introduction to
Management Science
Bernard W. Taylor III
Contents
Chapter 1 Management Science 1
Chapter 2 Linear Programming: Model Formulation and Graphical Solution
Chapter 3 Linear Programming: Computer Solution and Sensitivity Analysis
Chapter 4 Linear Programming: Modeling Examples 74
Chapter 5 Integer Programming 96
Chapter 6 Transportation, Transshipment, and Assignment Problems 120
Chapter 7 Network Flow Models 144
Chapter 8 Project Management 169
Chapter 9 Multicriteria Decision Making 195
Chapter 10 Nonlinear Programming 222
Chapter 11 Probability and Statistics 235
Chapter 12 Decision Analysis 265
Chapter 13 Queuing Analysis 297
Chapter 14 Simulation 320
Chapter 15 Forecasting 347
Chapter 16 Inventory Management 377
Module A The Simplex Solution Method 406
Module B Transportation and Assignment Solution Methods 426
Module C Integer Programming: The Branch and Bound Method 447
Module D Nonlinear Programming: Solution Techniques 462
Module E Game Theory 473
Module F Markov Analysis 488
Problem difficulty levels are represented as:
Diff 1 - Easy
Diff 2 - Moderate
Diff 3 - Difficult
Chapter 1
Management Science
True/False
1) Management science involves the philosophy of approaching a problem
manner.
Answer: FALSE
Diff: 1
Key words: scientific approach
2) Management science encompasses a logical approach to problem solvin
Answer: TRUE
Diff: 1
Key words: scientific approach, problem solving
3) Once management scientist makes his or her decision and recommenda
then typically, his or her involvement with the problem is finished.
Answer: FALSE
Diff: 2
Key words: management science, management scientist
4) A variable is a symbol used to represent an item that can take on any va
Answer: TRUE
,Answer: TRUE
Diff: 1
Key words: solution, management science solution
10) Management science modeling techniques provide results that are kno
Answer: FALSE
Diff: 2
Key words: management science modeling techniques, certainty
11) A constraint represents the limitation of management science techniqu
Answer: FALSE
Diff: 2
Key words: constraints, management science techniques
12) The term decision analysis refers to testing how a problem solution rea
more of the model parameters.
Answer: FALSE
Diff: 1
Key words: sensitivity analysis, parameter changes
13) Fixed costs depend on the number of items produced.
Answer: FALSE
Diff: 1
Key words: fixed cost, break-even analysis
14) Variable costs are independent of volume and remain constant.
Answer: FALSE
Diff: 1
Key words: variable cost, break-even analysis
15) Total cost equals the fixed cost plus the variable cost per unit divided b
Answer: FALSE
Diff: 1
Key words: total cost, break-even analysis
2
Management Science - Chapter 1
16) Profit is the difference between total revenue and total cost.
Answer: TRUE
Diff: 1
Key words: profit, break-even analysis
17) The break-even point is the volume that equates total revenue with tot
zero.
Answer: TRUE
Diff: 1
Key words: break-even analysis
18) In general, an increase in price increases the break even point if all cos
Answer: FALSE
Diff: 1
Key words: break-even analysis
19) If variable costs increase, but price and fixed costs are held constant, t
decrease.
Answer: FALSE
Diff: 2
Key words: break-even analysis
20) Managers utilize spreadsheets to conduct their own analyses in manag
Answer: TRUE
Diff: 2
,Answer: variable
Diff: 1
Key words: variable, management science process
25) __________ are unknown, constant values that are not coefficients of va
Answer: Parameters
Diff: 1
Key words: model, parameters
26) __________ are pieces of information from the problem environment.
Answer: Data
Diff: 1
Key words: data
27) A __________ is a functional relationship including variables, parameters
Answer: model
Diff: 1
Key words: model
28) __________ techniques consist of models that are represented as diagra
pictorial representation of the system being analyzed.
Answer: Network
Diff: 1
Key words: management science, networks
29) __________ techniques provide results that contain uncertainty, unlike m
programming techniques which are deterministic.
Answer: Probabilistic
Diff: 1
Key words: management science techniques, probabilistic techniques
4
Management Science - Chapter 1
30) __________ are independent of volume of goods produced and remain c
Answer: Fixed costs
Diff: 1
Key words: fixed cost, break-even analysis
31) __________ depend on the number of items produced.
Answer: Variable costs
Diff: 1
Key words: variable cost, break-even analysis
32) __________ is the difference between total revenue and total cost.
Answer: Profit
Diff: 1
Key words: profit, break-even analysis
33) The __________ is the volume that equates total revenue with total cost
Answer: break-even point
Diff: 1
Key words: break-even analysis
34) A __________ represents a limitation to achieving maximum profits due
Answer: constraint
Diff: 1
Key words: constraint, model development
35) The __________ can be noted as Z, and represents the goal of the firm.
Answer: objective function
Diff: 1
Key words: objective function, model development
, Answer: R(x) = 45x
Diff: 1
Key words: break-even analysis
40) There is a fixed cost of $50,000 to start a production process. Once the
variable cost per unit is $25. The revenue per unit is projected to be $45. W
for total profit.
Answer: P(x) = 45x - (50000 + 25x)
Diff: 1
Key words: break-even analysis
41) There is a fixed cost of $50,000 to start a production process. Once the
variable cost per unit is $25. The revenue per unit is projected to be $45. F
point.
Answer: X = 2500
Diff: 2
Key words: break-even analysis
42) Administrators at a university will charge students $150 to attend a se
reserve a room, hire an instructor, and bring in the equipment. Assume it c
for the administrators to provide the course materials. How many students
register for the seminar for the university to break even?
Answer: 24
Diff: 2
Key words: break-even analysis
43) Administrators at a university are planning to offer a summer seminar.
reserve a room, hire an instructor, and bring in the equipment. Assume it c
for the administrators to provide the course materials. If we know that 20 p
what price should be charged per person to break even?
Answer: $175
Diff: 2
Key words: break-even analysis
6
Management Science - Chapter 1
44) A newly opened bed-and-breakfast projects the following:
Monthly fixed costs $6000
Variable cost per occupied room per night $20
Revenue per occupied room per night $75
Write the expression for total cost per month (30 days).
Answer: C(x) = 6000 + 20(30)x
Diff: 2
Key words: break-even analysis
45) A newly opened bed-and-breakfast projects the following:
Monthly fixed costs $6000
Variable cost per occupied room per night $20
Revenue per occupied room per night $75
Write the expression for total revenue per month (30 days).
Answer: R(x) = 75(30)x
Diff: 2
Key words: break-even analysis
46) A newly opened bed-and-breakfast projects the following:
Monthly fixed costs $6000
Variable cost per occupied room per night $20
Revenue per occupied room per night $75
