OPSY 5315 Exam 3 Study quiz questions
with correct answers
Which of the following is not a valid LP constraint formulation?
a. 3X + 4Y less than/equal to 12
b. 2X x 2Y less than/equal 12
c. 3Y + 2Z = 18
d. 100 Greater than/equal to X + Y
e. 2.5X + 1.5Z = 30.6 - ANS ✔✔2X x 2Y less than/equal 12
When applying LP to diet problems, the objective function is usually designed to:
a. maximize profits from blends of nutrients.
b. maximize ingredient blends.
c. minimize production losses
d. maximize the number of products to be produced.
e. minimize the costs of nutrient blends. - ANS ✔✔minimize the costs of nutrient blends.
A zero shadow price for a resource ordinarily means that:
a. the resource is scarce
b. the resource constraint was redundant
c. the resource has not been used up
d. something is wrong with the problem formulation
,e. none of the above. - ANS ✔✔the resource has not been used up
One use of inventory is
a. to tightly synchronize production and distribution processes.
b. to provide a hedge against inflation.
c. to ensure that item cost is maximized.
d. to tightly synchronize a firm's production with its customers' demand. - ANS ✔✔to provide a
hedge against inflation.
The objective of inventory management is to
a. provide a selection of goods for anticipated customer demand.
b. decouple various parts of the production process.
c. strike a balance between inventory investment and customer service.
d. take advantage of quantity discounts. - ANS ✔✔strike a balance between inventory
investment and customer service.
Which of the following is NOT a type of inventory?
a. finished goods
b. work-in-process
c. MRP
d. raw material - ANS ✔✔MRP
Which of the following types of inventory describes inventory that has been purchased but not
processed?
,a. work-in-process inventory
b. finished-goods inventory
c. maintenance/repair/operating supply inventory
d. raw material inventory - ANS ✔✔raw material inventory
ABC analysis divides an organization's on-hand inventory into three classes based upon
a. annual demand.
b. the number of units on hand.
c. unit price.
d. annual dollar volume. - ANS ✔✔annual dollar volume.
Policies based on ABC analysis might include investing
a. the most time and effort verifying the accuracy of records for B items.
b. more in supplier development for A items.
c. extra care in forecasting for C items.
d. more in inventory security for C items. - ANS ✔✔more in supplier development for A items.
Which of the following does NOT belong to ordering costs?
a. cost of supplies
b. order processing
c. interest payments
d. clerical support - ANS ✔✔interest payments
, Which of the following does NOT belong to holding costs?
a. order processing
b. storage costs
c. insurance on inventory
d. pilferage, scrap, and obsolescence - ANS ✔✔order processing
What is the cost to prepare a machine or process for production?
a. ordering cost
b. holding cost
c. preparation cost
d. setup cost - ANS ✔✔setup cost
Inventory control models assume that demand for an item is
a. either independent of or dependent on the demand for other items.
b. always independent on the demand for other items.
c. always dependent on the demand for other items.
d. identical to the demand for other items. - ANS ✔✔either independent of or dependent on
the demand for other items.
A system that keeps track of each withdrawal or addition to inventory continuously is
__________.
a. a fixed-quantity system
with correct answers
Which of the following is not a valid LP constraint formulation?
a. 3X + 4Y less than/equal to 12
b. 2X x 2Y less than/equal 12
c. 3Y + 2Z = 18
d. 100 Greater than/equal to X + Y
e. 2.5X + 1.5Z = 30.6 - ANS ✔✔2X x 2Y less than/equal 12
When applying LP to diet problems, the objective function is usually designed to:
a. maximize profits from blends of nutrients.
b. maximize ingredient blends.
c. minimize production losses
d. maximize the number of products to be produced.
e. minimize the costs of nutrient blends. - ANS ✔✔minimize the costs of nutrient blends.
A zero shadow price for a resource ordinarily means that:
a. the resource is scarce
b. the resource constraint was redundant
c. the resource has not been used up
d. something is wrong with the problem formulation
,e. none of the above. - ANS ✔✔the resource has not been used up
One use of inventory is
a. to tightly synchronize production and distribution processes.
b. to provide a hedge against inflation.
c. to ensure that item cost is maximized.
d. to tightly synchronize a firm's production with its customers' demand. - ANS ✔✔to provide a
hedge against inflation.
The objective of inventory management is to
a. provide a selection of goods for anticipated customer demand.
b. decouple various parts of the production process.
c. strike a balance between inventory investment and customer service.
d. take advantage of quantity discounts. - ANS ✔✔strike a balance between inventory
investment and customer service.
Which of the following is NOT a type of inventory?
a. finished goods
b. work-in-process
c. MRP
d. raw material - ANS ✔✔MRP
Which of the following types of inventory describes inventory that has been purchased but not
processed?
,a. work-in-process inventory
b. finished-goods inventory
c. maintenance/repair/operating supply inventory
d. raw material inventory - ANS ✔✔raw material inventory
ABC analysis divides an organization's on-hand inventory into three classes based upon
a. annual demand.
b. the number of units on hand.
c. unit price.
d. annual dollar volume. - ANS ✔✔annual dollar volume.
Policies based on ABC analysis might include investing
a. the most time and effort verifying the accuracy of records for B items.
b. more in supplier development for A items.
c. extra care in forecasting for C items.
d. more in inventory security for C items. - ANS ✔✔more in supplier development for A items.
Which of the following does NOT belong to ordering costs?
a. cost of supplies
b. order processing
c. interest payments
d. clerical support - ANS ✔✔interest payments
, Which of the following does NOT belong to holding costs?
a. order processing
b. storage costs
c. insurance on inventory
d. pilferage, scrap, and obsolescence - ANS ✔✔order processing
What is the cost to prepare a machine or process for production?
a. ordering cost
b. holding cost
c. preparation cost
d. setup cost - ANS ✔✔setup cost
Inventory control models assume that demand for an item is
a. either independent of or dependent on the demand for other items.
b. always independent on the demand for other items.
c. always dependent on the demand for other items.
d. identical to the demand for other items. - ANS ✔✔either independent of or dependent on
the demand for other items.
A system that keeps track of each withdrawal or addition to inventory continuously is
__________.
a. a fixed-quantity system
