An Introduction to Management Science

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21 Chapters
575 Verified Questions
 Chapter 1: Introduction
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Sample Questions
Q1) A company seeks to maximize profit subject to limited availability of
[Link]-hours is a controllable input.
A)True
B)False
Answer: False

Q2) The process of decision making is more limited than that of problem solving.
A)True
B)False
Answer: True

Q3) The volume that results in total revenue being equal to total cost is the
A)break-even point.
B)marginal volume.
C)marginal cost.
D)profit mix.
Answer: A

Q4) Frederick Taylor is credited with forming the first MS/OR interdisciplinary teams in the
1940's.
A)True
B)False
Answer: False

Page 2
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 Chapter 2: Introduction to Linear Programming
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Sample Questions
Q1) All of the following statements about a redundant constraint are correct EXCEPT
A)A redundant constraint does not affect the optimal solution.
B)A redundant constraint does not affect the feasible region.
C)Recognizing a redundant constraint is easy with the graphical solution method.
D)At the optimal solution, a redundant constraint will have zero slack.
Answer: D

Q2) A range of optimality is applicable only if the other coefficient remains at its original
value.
A)True
B)False
Answer: True

Q3) Only binding constraints form the shape (boundaries) of the feasible region.
A)True
B)False
Answer: False

Q4) Decision variables limit the degree to which the objective in a linear programming
problem is satisfied.
A)True
B)False
Answer: False

Page 3
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 Chapter 3: LP Sensitivity Analysis and Interpretation of

Solution
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Sample Questions
Q1) If a decision variable is not positive in the optimal solution, its reduced cost is
A)what its objective function value would need to be before it could become positive.
B)the amount its objective function value would need to improve before it could become
positive.
C)zero.
D)its dual price.
Answer: B

Q2) If the range of feasibility indicates that the original amount of a resource, which was
20, can increase by 5, then the amount of the resource can increase to 25.
A)True
B)False
Answer: True

Q3) Decision variables must be clearly defined before constraints can be written.
A)True
B)False
Answer: True

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Page 4
 Chapter 4: Linear Programming Applications
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Sample Questions
Q1) For a portfolio selection problem with the objective of maximizing expected return,
the dual price for the available funds constraint provides information about the
A)proportion of the portfolio that is invested in a particular investment type
B)return from additional investment funds
C)degree of portfolio diversification that is optimal
D)cost of an additional unit of a particular investment type

Q2) The dual price for a constraint that compares funds used with funds available is
.[Link] means that
A)the cost of additional funds is 5.8%.
B)if more funds can be obtained at a rate of 5.5%, some should be.
C)no more funds are needed.
D)the objective was to minimize.

Q3) Media selection problems usually determine

A)how many times to use each media source.
B)the coverage provided by each media source.
C)the cost of each advertising exposure.
D)the relative value of each medium.

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Page 5
 Chapter 5: Advanced Linear Programming Applications
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Sample Questions
Q1) A linear programming application used to measure the relative efficiency of
operating units with the same goals and objectives is
A)game theory.
B)asset allocation.
C)data envelopment analysis.
D)revenue management.

Q2) Revenue management methodology can be applied in the case of nonperishable

assets.
A)True
B)False

Q3) It is possible for DEA to show all operating units to be relatively inefficient.
A)True
B)False

Q4) If a pure strategy solution exists for a two-person, zero-sum game, it is the optimal
solution to the game.
A)True
B)False

Q5) In portfolio models, risk is minimized by diversification.

A)True
B)False
Page 6
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 Chapter 6: Distribution and Network Problems
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Sample Questions
Q1) The problem which deals with the distribution of goods from several sources to
several destinations is the
A)maximal flow problem
B)transportation problem
C)assignment problem
D)shortest-route problem

Q2) Transshipment problem allows shipments both in and out of some nodes while
transportation problems do not.
A)True
B)False

Q3) The direction of flow in the shortest-route problem is always out of the origin node
and into the destination node.
A)True
B)False

Q4) In a transshipment problem, shipments

A)cannot occur between two origin nodes.
B)cannot occur between an origin node and a destination node.
C)cannot occur between a transshipment node and a destination node.
D)can occur between any two nodes.

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Page 7
 Chapter 7: Integer Linear Programming
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Sample Questions
Q1) Sensitivity analysis for integer linear programming
A)can be provided only by computer.
B)has precisely the same interpretation as that from linear programming.
C)does not have the same interpretation and should be disregarded.
D)is most useful for 0 - 1 models.

Q2) If the acceptance of project A is conditional on the acceptance of project B, and vice
versa, the appropriate constraint to use is a
A)multiple-choice constraint.
B)k out of n alternatives constraint.
C)mutually exclusive constraint.
D)corequisite constraint.

Q3) If a problem has only less-than-or-equal-to constraints with positive coefficients for
the variables, rounding down will always provide a feasible integer solution.
A)True
B)False

Q4) A multiple choice constraint involves selecting k out of n alternatives, where k > 2.
A)True
B)False

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Page 8
 Chapter 8: Nonlinear Optimization Models
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Sample Questions
Q1) Which of the following is not a parameter of the Bass model for forecasting adoption
of a new product?
A)the coefficient of innovation
B)the coefficient of interaction
C)the coefficient of imitation
D)the estimated number of people to eventually adopt the new product

Q2) For a typical nonlinear problem, duals price are relatively insensitive to small
changes in right-hand side values.
A)True
B)False

Q3) Any feasible solution to a blending problem without pooled components is feasible
to the problem with pooled components.
A)True
B)False

Q4) The value of the coefficient of imitation, q, in the Bass model for forecasting adoption
of a new product cannot be negative.
A)True
B)False

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Page 9
 Chapter 9: Project Scheduling: Pertcpm
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Sample Questions
Q1) The linear programming model for crashing presented in the textbook assumes that
any portion of the activity crash time can be achieved for a corresponding portion of the
activity crashing cost.
A)True
B)False

Q2) Activities with zero slack

A)can be delayed.
B)must be completed first.
C)lie on a critical path.
D)have no predecessors.

Q3) When activity times are uncertain, an activity's most likely time is the same as its
expected time.
A)True
B)False

Q4) When activity times are uncertain, total project time is normally distributed with
mean equal to the sum of the means of all of the critical activities.
A)True
B)False

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Page 10
 Chapter 10: Inventory Models
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Sample Questions
Q1) When quantity discounts are available, order an amount from the highest discount
category.
A)True
B)False

Q2) Inventory
A)is held against uncertain usage so that a supply of items is available if needed.
B)constitutes a small part of the cost of doing business.
C)is not something that can be managed effectively.
D)All of the alternatives are correct.

Q3) The time between placing orders is the lead time.

A)True
B)False

Q4) The maximum inventory with backorders is

A)Q
B)Q - S
C)S
D)(Q - S) / 2

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Page 11
 Chapter 11: Waiting Line Models
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Sample Questions
Q1) For all waiting lines, P₀ + P_w = 1.
A)True
B)False

Q2) Little's flow equations indicate that the relationship of L to L_q is the same
as that of W to W_q.
A)True
B)False

Q3) In developing the total cost for a waiting line, waiting cost takes into consideration
both the time spent waiting in line and the time spent being served.
A)True
B)False

Q4) Adding more channels always improves the operating characteristics of the waiting
line and reduces the waiting cost.
A)True
B)False

Q5) Queue discipline refers to the manner in which waiting units are arranged for
service.
A)True
B)False

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 Chapter 12: Simulation
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Sample Questions
Q1) Common features of simulations--generating values from probability distributions,
maintaining records, recording data and summarizing results--led to the development
of
A)Excel and Lotus.
B)BASIC, FORTRAN, PASCAL, and C.
C)GPSS, SIMSCRIPT, SLAM, and Arena
D)LINDO and The Management Scientist

Q2) A simulation model uses the mathematical expressions and logical relationships of
the
A)real system.
B)computer model.
C)performance measures.
D)estimated inferences.

Q3) Computer-generated random numbers are not technically random.

A)True
B)False

Q4) The parameters of a simulation model are the controllable inputs.

A)True
B)False

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Page 13
 Chapter 13: Decision Analysis
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Sample Questions
Q1) EVPI \(\geq\) EVSI
A)True
B)False

Q2) Which of the methods for decision making without probabilities best protects the
decision maker from undesirable results?
A)the optimistic approach
B)the conservative approach
C)minimum regret
D)minimax regret

Q3) If P(high) = .3, P(low) = .7, P(favorable | high) = .9, and P(unfavorable | low) = .6, then
P(favorable) =
A).10
B).27
C).30
D).55

Q4) States of nature should be defined so that one and only one will actually occur.
A)True
B)False

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Page 14
 Chapter 14: Multicriteria Decisions
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Sample Questions
Q1) For a scoring model, the decision maker evaluates each decision alternative using
equally weighted criteria.
A)True
B)False

Q2) Goal equations consist of a function that defines goal achievement and deviation
variables that measure the distance from the target.
A)True
B)False

Q3) If a problem has multiple goals at different priority levels, then usually they can all be
achieved.
A)True
B)False

Q4) Deviation variables that occur in the objective function indicate

A)the targets.
B)the priorities.
C)only the areas that are of concern.
D)the difference between all actual and target values.

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Page 15
 Chapter 15: Forecasting
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Sample Questions
Q1) Which of the following forecasting methods puts the least weight on the most recent
time series value?
A)exponential smoothing with\(\alpha\) = .3
B)exponential smoothing with \(\alpha\) = .2
C)moving average using the most recent 4 periods
D)moving average using the most recent 3 periods

Q2) Short-term, unanticipated, and nonrecurring factors in a time series provide the
random variability known as
A)uncertainty.
B)the forecast error.
C)the residuals.
D)the irregular component.

Q3) Time series methods

A)discover a pattern in historical data and project it into the future.
B)include cause-effect relationships.
C)are useful when historical information is not available.
D)All of the alternatives are true.

Q4) Time series methods base forecasts only on past values of the variables.
A)True
B)False

Page 16
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 Chapter 16: Markov Processes
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Sample Questions
Q1) A state i is a transient state if there exists a state j that is reachable from i, but the
state i is not reachable from state j.
A)True
B)False

Q2) For a situation with weekly dining at either an Italian or Mexican restaurant,
A)the weekly visit is the trial and the restaurant is the state.
B)the weekly visit is the state and the restaurant is the trial.
C)the weekly visit is the trend and the restaurant is the transition.
D)the weekly visit is the transition and the restaurant is the trend.

Q3) When absorbing states are present, each row of the transition matrix corresponding
to an absorbing state will have a single 1 and all other probabilities will be 0.
A)True
B)False

Q4) A unique matrix of transition probabilities should be developed for each customer.
A)True
B)False

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Page 17
 Chapter 17: LP: Simplex Method
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Sample Questions
Q1) The variable to remove from the current basis is the variable with the smallest
positive c_j - z_j value.
A)True
B)False

Q2) When a system of simultaneous equations has more variables than equations, there
is a unique solution.
A)True
B)False

Q3) If a variable is not in the basis, its value is 0.

A)True
B)False

Q4) Artificial variables are added for the purpose of obtaining an initial basic feasible
solution.
A)True
B)False

Q5) A basic feasible solution satisfies the nonnegativity restriction.

A)True
B)False

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Page 18
 Chapter 18: Simplex-Based Sensitivity Analysis and Duality
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Sample Questions
Q1) The dual price is the improvement in value of the optimal solution per unit increase in
the value of the right-hand-side associated with a linear programming problem.
A)True
B)False

Q2) Dual prices and ranges for objective function coefficients and right-hand-side
values are found by considering
A)dual analysis.
B)optimality analysis.
C)ranging analysis.
D)sensitivity analysis.

Q3) There is a dual price associated with each decision variable.

A)True
B)False

Q4) The ranges for which the right-hand-side values are valid are the same as the
ranges over which the dual prices are valid.
A)True
B)False

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Page 19
 Chapter 19: Solution Procedures for Transportation and

Assignment Problems
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Sample Questions
Q1) Using the Hungarian method, the optimal solution to an assignment problem is
found when the minimum number of lines required to cover the zero cells in the reduced
matrix equals the number of agents.
A)True
B)False

Q2) To handle unacceptable routes in a transportation problem where cost is to be

minimized, infeasible arcs must be assigned negative cost values.
A)True
B)False

Q3) The per-unit change in the objective function associated with assigning flow to an
unused arc in the transportation simplex method is called the
A)net evaluation index.
B)degenerate value.
C)opportunity loss.
D)simplex multiplier.

Q4) The transportation simplex method can be used to solve the assignment problem.
A)True
B)False

Page 20
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 Chapter 20: Minimal Spanning Tree
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Sample Questions
Q1) It is possible for minimal spanning tree problems to have alternative optimal
solutions.
A)True
B)False

Q2) Consider a minimal spanning tree problem in which pipe must be laid to connect
sprinklers on a golf [Link] represented with a network,
A)the pipes are the arcs and the sprinklers are the nodes.
B)the pipes are the nodes and the sprinklers are the arcs.
C)the pipes and the sprinklers are the tree.
D)each sprinkler must be connected to every other sprinkler.

Q3) The minimal spanning tree algorithm is considered to be:

A)a greedy algorithm.
B)an arc algorithm.
C)a non-optimal algorithm.
D)a non-feasible algorithm.

Q4) The arcs in a minimal spanning tree problem can be measured in terms of criteria
other than distance.
A)True
B)False

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Page 21
 Chapter 21: Dynamic Programming
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Sample Questions
Q1) Dynamic programming, when used for the shortest route problem, requires complete
enumeration of paths from the beginning to ending node.
A)True
B)False

Q2) Dynamic programming is a general approach rather than a specific technique.

A)True
B)False

Q3) The output of stage k is the input for stage k?1.

A)True
B)False

Q4) The return function for a shortest route problem refers to two directional arcs
between nodes.
A)True
B)False

Q5) Dynamic programming must only involve a finite number of decision alternatives
and a finite number of stages.
A)True
B)False

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