Test Bank for Operations Management, 5th Canadian Edition by Jay Heizer

All Chapters Included ✅
Operations Management, 5Ce (Heizer)
Module A - Decision-Making Tools Modules Included

A.1 The Decision Process in Operations Supplements Included

1) There are no questions in this section.
Type: SA

A.2 Fundamentals of Decision Making

1) Analytic decision making is based on logic and considers all available data and possible alternatives.
Answer: TRUE
Diff: 1 Type: TF
Skill: comprehension
Learning Outcome: LO1 Create a simple decision tree

2) The last step in the analytic decision process clearly defines the problem and the factors that influence
it.
Answer: FALSE
Diff: 1 Type: TF
Skill: comprehension
Learning Outcome: LO1 Create a simple decision tree

3) A state of nature is an occurrence of a situation over which the decision maker has little or no control.
Answer: TRUE
Diff: 1 Type: TF
Skill: knowledge
Learning Outcome: LO1 Create a simple decision tree

4) In a decision tree, a square symbol represents a state of nature node.
Answer: FALSE
Diff: 2 Type: TF
Skill: knowledge
Learning Outcome: LO1 Create a simple decision tree

5) The last step in the analytic decision process is to select the best alternative.
Answer: FALSE
Diff: 1 Type: TF
Skill: knowledge
Learning Outcome: LO1 Create a simple decision tree

6) The most critical step in the analytic decision process is to minimize the total cost.
Answer: FALSE
Diff: 1 Type: TF
Skill: knowledge
Learning Outcome: LO1 Create a simple decision tree



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,7) The first step, and a key element, in the decision-making process is to
A) consult a specialist.
B) clearly define the problem.
C) develop objectives.
D) monitor the results.
E) select the best alternative.
Answer: B
Diff: 1 Type: MC
Skill: knowledge
Learning Outcome: LO1 Create a simple decision tree

8) The last step of the decision-making process is to
A) develop a model.
B) evaluate each alternative.
C) pick the best alternative.
D) implement the decision.
E) check the decision with senior management.
Answer: D
Diff: 1 Type: MC
Skill: knowledge
Learning Outcome: LO1 Create a simple decision tree

9) A square node on a decision tree infers that
A) the node splits into various states of nature, of which only one will occur.
B) there are several alternatives available.
C) the manager must choose an alternative.
D) there are several alternatives available and the manager must choose an alternative.
E) the node splits into various states of nature, of which only one will occur, there are several alternatives
available and the manager must choose an alternative.
Answer: D
Diff: 2 Type: MC
Skill: comprehension
Learning Outcome: LO1 Create a simple decision tree




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,10) The following decision tree has how many state of nature nodes?




A) 0
B) 1
C) 2
D) 3
E) 4
Answer: B
Diff: 2 Type: MC
Skill: application
Learning Outcome: LO1 Create a simple decision tree

11) In terms of decision theory, an occurrence or situation over which the decision maker has no control is
called a(n)
A) decision under uncertainty.
B) decision tree.
C) state of nature.
D) alternative.
E) probable state.
Answer: C
Diff: 1 Type: MC
Skill: knowledge
Learning Outcome: LO1 Create a simple decision tree

12) A decision tree is a(n)
A) algebraic representation of alternatives and states of nature.
B) behavioral representation of alternatives and states of nature.
C) matrix representation of alternatives and states of nature.
D) graphic representation of alternatives and states of nature.
E) tabular representation of alternatives and states of nature.
Answer: D
Diff: 1 Type: MC
Skill: knowledge
Learning Outcome: LO1 Create a simple decision tree


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, 13) In the context of decision-making, define state of nature.
Answer: A state of nature is an occurrence or situation over which the decision maker has little or no
control.
Diff: 2 Type: ES
Skill: comprehension
Learning Outcome: LO1 Create a simple decision tree

14) In the context of decision-making, define alternative.
Answer: An alternative is a course of action or a strategy that may be chosen by a decision maker.
Diff: 1 Type: ES
Skill: knowledge
Learning Outcome: LO1 Create a simple decision tree

15) Identify, in order, the six steps of analytical decision making.
Answer:
1. Clearly define the problem and factors that influence it.
2. Develop specific and measurable objectives.
3. Develop a model–that is, a relationship between objectives and variables (which are
measurable quantities).
4. Evaluate each alternative solution based on its merits and drawbacks.
5. Select the best alternative.
6. Implement the decision and set a timetable for completion.
Diff: 3 Type: ES
Skill: knowledge
Learning Outcome: LO1 Create a simple decision tree

16) Explain the graphical shapes used in decision tree analysis.
Answer: A decision node from which one or several alternatives may be selected is represented by a
square; a state of nature node out of which states of nature will occur is represented by a circle.
Diff: 2 Type: ES
Skill: knowledge
Learning Outcome: LO1 Create a simple decision tree




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