Operations Management, 12e (Heizer/Render/Munson)
Module A Decision-Making Tools
Section 1 The Decision Process in Operations
1) Analytic decision making is based on logic and considers all available data and possible
alternatives.
Answer: TRUE
Diff: 1
2) The last step in the analytic decision process is to clearly define the problem and the factors
that influence it.
Answer: FALSE
Diff: 1
3) Big data refers to numbers larger than 1,600.
Answer: FALSE
Diff: 1
4) Big data refers to huge amounts of data that are often hard to process efficiently or easily.
Answer: TRUE
Diff: 1
5) Which of the following is NOT considered a step in the decision-making process?
A) Clearly define the problem and the factors that influence it.
B) Select the best alternative.
,C) Develop specific and measurable objectives.
D) Evaluate each alternative solution based on its merits and drawbacks.
E) Minimize costs whenever possible.
Answer: E
Diff: 2
6) 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
7) The last step of the decision-making process is to:
A) develop a model.
B) evaluate each alternative.
C) select the best alternative.
D) implement the decision.
E) check the decision with senior management.
Answer: D
Diff: 2
8) Massive amounts of data:
A) are often collected in production processes.
,B) can be automatically collected from web sites and credit cards.
C) require sophisticated tools to store, process, and analyze.
D) are sometimes called "big data."
E) all of the above
Answer: E
Diff: 2
9) 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
Section 2 Fundamentals of Decision Making
1) A state of nature is an occurrence or a situation over which the decision maker has little or no
control.
Answer: TRUE
Diff: 1
Objective: LO A.1 Create a simple decision tree
, 2) In a decision tree, a square symbol represents a state of nature node.
Answer: FALSE
Diff: 2
Objective: LO A.1 Create a simple decision tree
3) 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) Both B and C
E) A, B, and C
Answer: D
Diff: 2
AACSB: Reflective thinking
Objective: LO A.1 Create a simple decision tree
Module A Decision-Making Tools
Section 1 The Decision Process in Operations
1) Analytic decision making is based on logic and considers all available data and possible
alternatives.
Answer: TRUE
Diff: 1
2) The last step in the analytic decision process is to clearly define the problem and the factors
that influence it.
Answer: FALSE
Diff: 1
3) Big data refers to numbers larger than 1,600.
Answer: FALSE
Diff: 1
4) Big data refers to huge amounts of data that are often hard to process efficiently or easily.
Answer: TRUE
Diff: 1
5) Which of the following is NOT considered a step in the decision-making process?
A) Clearly define the problem and the factors that influence it.
B) Select the best alternative.
,C) Develop specific and measurable objectives.
D) Evaluate each alternative solution based on its merits and drawbacks.
E) Minimize costs whenever possible.
Answer: E
Diff: 2
6) 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
7) The last step of the decision-making process is to:
A) develop a model.
B) evaluate each alternative.
C) select the best alternative.
D) implement the decision.
E) check the decision with senior management.
Answer: D
Diff: 2
8) Massive amounts of data:
A) are often collected in production processes.
,B) can be automatically collected from web sites and credit cards.
C) require sophisticated tools to store, process, and analyze.
D) are sometimes called "big data."
E) all of the above
Answer: E
Diff: 2
9) 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
Section 2 Fundamentals of Decision Making
1) A state of nature is an occurrence or a situation over which the decision maker has little or no
control.
Answer: TRUE
Diff: 1
Objective: LO A.1 Create a simple decision tree
, 2) In a decision tree, a square symbol represents a state of nature node.
Answer: FALSE
Diff: 2
Objective: LO A.1 Create a simple decision tree
3) 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) Both B and C
E) A, B, and C
Answer: D
Diff: 2
AACSB: Reflective thinking
Objective: LO A.1 Create a simple decision tree
