OperationsbandbSupplybChainbManagement
1)bProductivitybcanbbebimprovedbby
a. increasingbinputsbwhilebholdingboutputsbsteady
b. decreasingboutputsbwhilebholdingbinputsbsteady
c. increasingbinputsbandboutputsbinbthebsamebproportion
d. decreasingbinputsbwhilebholdingboutputsbsteady
e. nonebofbthebabove
1)bAggregatebplanning:
a) bisbshort-rangebproductionbplanning
b) bthebprocessbofbdevelopingbabplanbforbproductionbcapacitybtobmeetbdemandboverbabmedium-range
bhorizon
c) binvolvesbthebmasterbproductionbschedulebandbpurchasebmaterialbschedule
d) bdonebatbthebshop-floorblevelbofbtheborganization
2)bbPostponementbinvolvesbmovingbsomebofbthebmanufacturingbintobthebdistributionbcenter.bb
a)True b)bbbbFalse
2)bbAbdecision-
makerbusingbthebmaximaxbcriterionbonbthebproblembbelowbwouldbchoosebAlternativeb________bbec
ausebthebcriterionbvaluebisbb___________.
Statesbofbnature
1 2 3
AlternativebA 50 55 60
AlternativebB 30 50 80
AlternativebC 70 80 70
AlternativebD -100 -10 140
a. A;b60 b.bbB;b80 c.bbC;b70bbbbbbb d.bbD;b-100bbbbb e.bbD;b140
3)bbAbdecision-
makerbusingbthebmaximinbcriterionbonbthebproblembbelowbwouldbchoosebwhichbAlternative?
Statesbofbnature
1 2 3
AlternativebA 50 55 60
AlternativebB 30 50 80
AlternativebC 70 80 70
AlternativebD -100 -10 140
a. A b.bbbB c.bbbC
d. D e.bbbbbNonebofbthebabove
Pageb1bofb7
,4)bbThebdecisionbcriterionbthatbwouldbbebusedbbybanboptimisticbdecisionbmakerbsolvingbabproblembun
derbconditionsbofbuncertaintybwouldbbebthe
a. expectedb(monetary)bvaluebcriterion b.bbbminimaxbregretbcriterion
c. maximaxbcriterion bbbbbbbbbb d.bbbmaximinbcriterionbbbbbbbbbbbbbbb
5)bbWhichbofbthebfollowingbstatementsbregardingbfixedbcostsbisbtrue?
a. Fixedbcostsbrisebbybabconstantbamountbforbeverybaddedbunitbofbvolume.
b. Fixedbcostsbdobnotbvarybwithbvolume.
c. Fixedbcostsbarebthosebcostsbassociatedbwithbdirectblaborbandbmaterials.
d. Fixedbcostsbequalbvariablebcostsbatbthebbreak-evenbpoint.
e. Fixedbcostbisbthebdifferencebbetweenbsellingbpricebandbvariablebcost.bb
6)bbBasicbbreak-evenbanalysisbtypicallybassumesbthat
a.
revenuesbincreasebinbdirectbproportionbtobthebvolumebofbproduction,bwhilebco
stsbincreasebatbabdecreasingbratebasbproductionbvolumebincreases
b.
variablebcostsbandbrevenuesbincreasebinbdirectbproportionbtobthebvolumebofbproduction
c. bothbcostsbandbrevenuesbarebmadebupbofbfixedbandbvariablebportions
d.
costsbincreasebinbdirectbproportionbtobthebvolumebofbproduction,bwhilebrevenuesbincr
easebatbabdecreasingbratebasbproductionbvolumebincreasesbbecausebofbthebneedbtobgivebquantit
ybdiscounts
e. Allbofbthebabovebarebassumptionsbinbthebbasicbbreak-evenbmodel.
7)bbAnbinvestorbisbconsideringb4binvestments,bA,bB,bCbandbleavingbhisbmoneybinbthebbank.bThebpayof
fbfrombeachbinvestmentbisbabfunctionbofbthebeconomicbclimateboverbthebnextb2byears.bThebeconomybc
anbexpandborbdecline.bThebfollowingbpayoffbmatrixbhasbbeenbdevelopedbforbthebdecisionbproblem.
Economy
Investment Decline Expand
A 0 85
B 25 65
C 40 30
Bank 10 10
Whatbdecisionbshouldbbebmadebaccordingbtobthebminimaxbregretbdecisionbcriteria?
a. A
b. B
c. C
d. Bank
Pageb2bofb7
, Usebthebfollowingbtablebforbproblemsb8bandb9
Statesbofbnature
Alternatives S1 S2
p .6 .4
Optionb1 200 300
Optionb2 50 350
8)bWhatbisbthebexpectedbvaluebwithbperfectbinformationbinbthebfollowingbdecisionbtable?
a.bb50 b.bb200 c.bb260bbbbbbb bdb.bb300bbbbbb e.b350
Solving:
ExpectedbValuebwithbPerfectbInformationbb=0.6b*b200b+b0.4b*b350b=b120b+b140=260
9)bbWhatbisbthebexpectedbvaluebofbperfectbinformationbofbthebfollowingbdecisionbtable?
a.bbb0bbbbbb b.bbb20bbbb c.bb50bbbbbbbbbbbd.bb150bbbbbbbbbbbe.bb200
Solving:
EVPIb=bExpectedbValuebwithbPerfectbInformationb–bExpectedbValuebWithoutbPerfectbInformation
ExpectedbValuebwithbPerfectbInformationb=b(200bb*b0.6)b+b(350*0.4)=260
ExpectedbValuebWithoutbPerfectbInformation
Optionb1b=b(200b*b0.6)b+b(300b*b0.4)b=b240
Optionb2b=b(b50bb*b0.6)b+b(350b*b0.4)b=b170
ExpectedbValuebWithoutbPerfectbInformationb=bMaximumbofbb(240,17)bwhichbisb240
EVPIb=b260-240=20
----------------------------------------------------------------------------------------------------------
10)bAbfoundrybproducesbcircularbutilitybaccessbhatchesb(manholebcovers).bCurrently,b120bcoversbare
bproducedbinbab10-hourbshift.bbIfblaborbproductivitybcanbbebincreasedbbyb20%,bitbwouldbthenbbe
a. 14.4bcovers/hrb
bbbbbbbbbbb.bb24bcovers/hr
c. 240bvalves/hrb
bbbbbbbbbd.bb1200bcovers/hr
e. nonebofbthebabove
Pageb3bofb7
1)bProductivitybcanbbebimprovedbby
a. increasingbinputsbwhilebholdingboutputsbsteady
b. decreasingboutputsbwhilebholdingbinputsbsteady
c. increasingbinputsbandboutputsbinbthebsamebproportion
d. decreasingbinputsbwhilebholdingboutputsbsteady
e. nonebofbthebabove
1)bAggregatebplanning:
a) bisbshort-rangebproductionbplanning
b) bthebprocessbofbdevelopingbabplanbforbproductionbcapacitybtobmeetbdemandboverbabmedium-range
bhorizon
c) binvolvesbthebmasterbproductionbschedulebandbpurchasebmaterialbschedule
d) bdonebatbthebshop-floorblevelbofbtheborganization
2)bbPostponementbinvolvesbmovingbsomebofbthebmanufacturingbintobthebdistributionbcenter.bb
a)True b)bbbbFalse
2)bbAbdecision-
makerbusingbthebmaximaxbcriterionbonbthebproblembbelowbwouldbchoosebAlternativeb________bbec
ausebthebcriterionbvaluebisbb___________.
Statesbofbnature
1 2 3
AlternativebA 50 55 60
AlternativebB 30 50 80
AlternativebC 70 80 70
AlternativebD -100 -10 140
a. A;b60 b.bbB;b80 c.bbC;b70bbbbbbb d.bbD;b-100bbbbb e.bbD;b140
3)bbAbdecision-
makerbusingbthebmaximinbcriterionbonbthebproblembbelowbwouldbchoosebwhichbAlternative?
Statesbofbnature
1 2 3
AlternativebA 50 55 60
AlternativebB 30 50 80
AlternativebC 70 80 70
AlternativebD -100 -10 140
a. A b.bbbB c.bbbC
d. D e.bbbbbNonebofbthebabove
Pageb1bofb7
,4)bbThebdecisionbcriterionbthatbwouldbbebusedbbybanboptimisticbdecisionbmakerbsolvingbabproblembun
derbconditionsbofbuncertaintybwouldbbebthe
a. expectedb(monetary)bvaluebcriterion b.bbbminimaxbregretbcriterion
c. maximaxbcriterion bbbbbbbbbb d.bbbmaximinbcriterionbbbbbbbbbbbbbbb
5)bbWhichbofbthebfollowingbstatementsbregardingbfixedbcostsbisbtrue?
a. Fixedbcostsbrisebbybabconstantbamountbforbeverybaddedbunitbofbvolume.
b. Fixedbcostsbdobnotbvarybwithbvolume.
c. Fixedbcostsbarebthosebcostsbassociatedbwithbdirectblaborbandbmaterials.
d. Fixedbcostsbequalbvariablebcostsbatbthebbreak-evenbpoint.
e. Fixedbcostbisbthebdifferencebbetweenbsellingbpricebandbvariablebcost.bb
6)bbBasicbbreak-evenbanalysisbtypicallybassumesbthat
a.
revenuesbincreasebinbdirectbproportionbtobthebvolumebofbproduction,bwhilebco
stsbincreasebatbabdecreasingbratebasbproductionbvolumebincreases
b.
variablebcostsbandbrevenuesbincreasebinbdirectbproportionbtobthebvolumebofbproduction
c. bothbcostsbandbrevenuesbarebmadebupbofbfixedbandbvariablebportions
d.
costsbincreasebinbdirectbproportionbtobthebvolumebofbproduction,bwhilebrevenuesbincr
easebatbabdecreasingbratebasbproductionbvolumebincreasesbbecausebofbthebneedbtobgivebquantit
ybdiscounts
e. Allbofbthebabovebarebassumptionsbinbthebbasicbbreak-evenbmodel.
7)bbAnbinvestorbisbconsideringb4binvestments,bA,bB,bCbandbleavingbhisbmoneybinbthebbank.bThebpayof
fbfrombeachbinvestmentbisbabfunctionbofbthebeconomicbclimateboverbthebnextb2byears.bThebeconomybc
anbexpandborbdecline.bThebfollowingbpayoffbmatrixbhasbbeenbdevelopedbforbthebdecisionbproblem.
Economy
Investment Decline Expand
A 0 85
B 25 65
C 40 30
Bank 10 10
Whatbdecisionbshouldbbebmadebaccordingbtobthebminimaxbregretbdecisionbcriteria?
a. A
b. B
c. C
d. Bank
Pageb2bofb7
, Usebthebfollowingbtablebforbproblemsb8bandb9
Statesbofbnature
Alternatives S1 S2
p .6 .4
Optionb1 200 300
Optionb2 50 350
8)bWhatbisbthebexpectedbvaluebwithbperfectbinformationbinbthebfollowingbdecisionbtable?
a.bb50 b.bb200 c.bb260bbbbbbb bdb.bb300bbbbbb e.b350
Solving:
ExpectedbValuebwithbPerfectbInformationbb=0.6b*b200b+b0.4b*b350b=b120b+b140=260
9)bbWhatbisbthebexpectedbvaluebofbperfectbinformationbofbthebfollowingbdecisionbtable?
a.bbb0bbbbbb b.bbb20bbbb c.bb50bbbbbbbbbbbd.bb150bbbbbbbbbbbe.bb200
Solving:
EVPIb=bExpectedbValuebwithbPerfectbInformationb–bExpectedbValuebWithoutbPerfectbInformation
ExpectedbValuebwithbPerfectbInformationb=b(200bb*b0.6)b+b(350*0.4)=260
ExpectedbValuebWithoutbPerfectbInformation
Optionb1b=b(200b*b0.6)b+b(300b*b0.4)b=b240
Optionb2b=b(b50bb*b0.6)b+b(350b*b0.4)b=b170
ExpectedbValuebWithoutbPerfectbInformationb=bMaximumbofbb(240,17)bwhichbisb240
EVPIb=b260-240=20
----------------------------------------------------------------------------------------------------------
10)bAbfoundrybproducesbcircularbutilitybaccessbhatchesb(manholebcovers).bCurrently,b120bcoversbare
bproducedbinbab10-hourbshift.bbIfblaborbproductivitybcanbbebincreasedbbyb20%,bitbwouldbthenbbe
a. 14.4bcovers/hrb
bbbbbbbbbbb.bb24bcovers/hr
c. 240bvalves/hrb
bbbbbbbbbd.bb1200bcovers/hr
e. nonebofbthebabove
Pageb3bofb7
