SP02Exam I White.doc

8/14/2019 SP02Exam I White.doc

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Name:___________________

Section:___________________

Exam I

BA 301

Spring 2002

S.K. Norman

WHITE

1


2/11

Exam I Spring 2002

Select the best answer. 2 Points each.

1. What combination of x and y will yield the optimum for this problem?Maximize $x ! $1"y# subect to %1& 2x ! 'y ( 12 and %2& "x ! 2y ( 1). %*ou do +,- need toraph this in order to answer.&a. x / 2# y / )

b. x / )# y / c. x / )# y / )d. x / 1# y / "e. none of the abo0e

2. n linear prorammin# a statement such as Maximize contribution becomes a%n&a. constraintb. slac3 0ariablec. obecti0e functiond. 0iolation of linearitye. decision 0ariable

. 4ustomers of 5ell 4omputers can order their computers on6line. ,nce the order is placed# 5ell startsto assemble the computer. 5ell has recently reduced the time it ta3es to assemble a computer from 1)hours to 7 hours. -his is an example of competin by

a. low6costb. differentiationc. responsed. 8ualitye. none of the abo0e

'. Mass customization has been de0eloped to producea. hih60olume# hih60ariety productsb. low60olume# hih60ariety productsc. hih60olume# low60ariety productsd. low60ariety products at either hih6 or low60olumee. hih60olume products of either hih6 or low60ariety

". -he li3elihood that a decision ma3er will e0er recei0e a payoff precisely e8ual to the expected 0aluewhen ma3in any one decision isa. hih %near 1))9&b. low %near )9&c. dependent upon the number of alternati0esd. dependent upon the number of states of naturee. none of the abo0e

:. n sensiti0ity analysis# a zero shadow price for a resource ordinarily means thata. the resource has not been used upb. the resource is scarcec. the resource constraint was redundant

d. somethin is wron with the problem formulatione. none of the abo0e

;. Which one of the followin products is most li3ely made in a ob6shop en0ironment?a. raphite pencilsb. personal computersc. ciarettesd. Mc5onald


3/11

Exam I Spring 2002

7. =n operations manaer is notli3ely to be in0ol0ed ina. the identification of customers< wants and needsb. the desin of products and ser0ices to satisfy customers< wants and needsc. the 8uality of products and ser0ices to satisfy customers< wants and needsd. wor3 schedulin to meet the due dates promised to customers

e. forecastin sales

>. -he reion which satisfies all of the constraints in linear prorammin is called thea. optimum solution spaceb. profit maximization reionc. feasible reiond. reion of optimalitye. reion of non6neati0ity

1). 5ecision treesa. i0e more accurate solutions than decision tablesb. i0e less accurate solutions than decision tablesc. are rarely used because one needs specialized software to raph themd. are especially powerful when a se8uence of decisions must be made

e. are too complex to be used by decision ma3ers

11. -he fundamental purpose for the existence of any oranization is described by itsa. policiesb. proceduresc. strateyd. missione. bylaws

12. Which of the followin industries is li3ely to ha0e low e8uipment utilization?a. auto manufacturinb. machine6tool shopc. beer ma3in

d. paper manufacturine. chemical processin

1. Which of the followin is notan operations decision?a. schedulinb. layout desinc. priced. 8ualitye. in0entory

1'. orecasts used for new product plannin# capital expenditures# facility location or expansion# and@A5 typically utilize aa. lon6rane time horizon

b. medium6rane time horizonc. short6rane time horizond. nai0e method# because there is no data historye. all of the abo0e


4/11

Exam I Spring 2002

1". 4onsider forecastin methods. Method = has a M=5 of 1)."B Method C has a Mad of 1.:B andmethod 4 has a M=5 of >.;. Which method should be chosen for the reatest accuracy?

a. Method =b. Method Cc. Method 4

d. t depends on which 0alue of is selected.

e. +one of the abo0e

1:. = continuous process is commonly used to producea. hih60olume# hih60ariety productsb. low60olume# hih60ariety productsc. hih60olume# low60ariety productsd. low60ariety products at either hih6 or low60olumee. hih60olume products of either hih6 or low60ariety

1;. -he dilemma# in the PrisonerDs 5ilemma isa. whether to confess or not to confessb. that if both players confess then they both winc. that if both players follow their best stratey they will be worse off than if they cooperated. whether to follow a stratey or play randomlye. none of the abo0e

17. n decision theory# an occurrence or situation o0er which the decision ma3er has no control is called

a%n&a. decision treeb. state of naturec. alternati0ed. decision under uncertaintye. none of the abo0e

1>. n which stae of the product life cycle should product stratey focus on impro0ed cost control?a. introductionb. rowth

c. maturityd. declinee. none of the abo0e

2). Which of the followin is nota typical attribute of oods?a. output can be in0entoriedb. often easy to automatec. hih customer interactiond. output can be resolde. production and consumption are separate

'


5/11

Exam I Spring 2002

Problems E each problems is labeled with its point 0alue.

21. % pts& -he decision tree abo0e represents a decision problem. Fow many states of nature

are in this problem?

a. ,neb. -woc. -hreed. Sixe. +one of the abo0e

22. %' pts& -he decision with the hihest expected 0alue is

a. =b. Cc. 4d. = A Ce. = A 4

2. %' pts& 4ompute the M=5 for the forecast belowG

Quarter Actual Demand Forecast

1 ')

2 '2 '"

'7 ")' "> ""

a. ' units per 8uarter

b. 2 units per 8uarter

c. E2 units per 8uarter

d. 7.79

e. none of the abo0e

"


6/11

Exam I Spring 2002

Crenda Helly runs a specialty s3i clothin shop outside of 5urano# 4,. She must place her

order for s3i ac3ets well in ad0ance of the s3i season because the manufacturer produces them

durin the summer months. Crenda needs to determine wither to place a lare# medium # or small

order for ac3ets. -he number sold will depend larely on whether the area recei0es a hea0y#

normal# or liht amount of snow durin the s3i season. -he followin table summarizes the

payoff Crenda expects under each scenario.

Amount of snow

Size of order Heavy Normal Light

Large 10 7 3

Medium 8 8

Small ! ! !

"ayoffs #in $1000s%

2'. %2 pts& 5etermine the best decision usin the optimistic approach.

a. Iareb. Medium

c. Small

d. +ot enouh information


2". %' pts& = local psychic claims that she has correctly predicted the amount of snowfall for

the last > out of 1) years. Crenda is tempted. What is the maximum that Crenda should be

willin to pay for a snowfall prediction?

a. $'2))

b. $;))

c. $"")

d. $"))e. +one of the abo0e

2:. %' pts& Crenda estimates that the probability of a hea0y snowfall is ).2"# the probability of

a normal snowfall is ).:)# and the probability of a liht snowfall is ).1". What is the best

decision and expected payoff usin the expected 0alue approach?

a. Iare# $;1")

b. Medium# $72))

c. Medium# $;;))

d. Small# $')))


2;. % pts& 5etermine the best decision usin the conser0ati0e approach.a. Iare

b. Medium

c. Small

d. +ot enouh information


:


7/11

Exam I Spring 2002

27. %' pts& or the spreadsheet below# determine the 0alue that will be printed in cell J".

a. '.)

b. ".:

c. ;.)

d. 2).)


-he ,utdoor urniture 4ompany manufactures two products# benches and picnic tables. -hefirm has two main resourcesG its carpenters %labor force& and a supply of redwood. 5urin thenext production cycle# 1#2)) hours of labor are a0ailable under a union areement. -he firm also

has a stoc3 of #")) board feet of 8uality redwood. Jach bench re8uires ' labor6hours and 1)board6feet of redwoodB each picnic table ta3es : labor6hours and " board6feet. 4ompletedbenches will yield a profit of $> each# and tables will result in a profit of $2) each. ormulate anIP to determine the number of tables and benches to produce in order to optimize profit. =nswerthe followin 8uestions reardin the IP formulation. Iet C represent the number of benchesand - represent the number of tables.

2>. %' pts& -he obecti0e function is

a. M=K >C ! 2)-

b. /sumproduct%>C ! 2)-&

c. M=K >C ! 2)- "))

d. 1)C ! "- "))


). %' pts& -he labor6hour constraint is

a. C ! - 12))

b. 'C ! 1)- 12))

c. 'C ! :- 12))

d. 1)C ! "- "))


;


8/11

Exam I Spring 2002

MS= 4omputer 4orporation manufactures two models of minicomputers# the =lpha ' and Ceta

". -he firm employs " technicians# wor3in 1:) hours each per month# on its assembly line.

Manaement insists that full employment %that is# =II 1:) hours of time& be maintained for

J=4F wor3er durin next monthDs operations. t re8uires 2) labor6hours to assemble each =lpha

' computer and 2" labor6hours to assembly each Ceta " model. MS= wants to produce at least

1) =lpha 's and at least 1" Ceta "s. =lpha 's enerate $12)) profit per unit# and Ceta "s yield

$17)) each. -his problem has been formulated as an IP and sol0ed usin Jxcel sol0er. Lse theanswer and sensiti0ity reports below to answer the next 2 8uestions.

Microsoft Excel 9.0 Answer Report

&arget 'ell #Ma(%

Cell Name Original Value Final Value

$)$1* "rofit &otal "rofit 0 ++*00

Ad,usta-le 'ells

Cell Name Original Value Final Value

$.$10 Num-er of /omuter Alha ! 0 10

$'$10 Num-er of /omuter .eta + 0 *!

'onstraints

Cell Name Cell Value Formula Status Slac

$)$! La-orhours 2sed 800 $)$!4$5$! .inding 0

$)$+ Alha ! Min 2sed 10$)$+64$5$+ .inding 0

$)$ .eta + Min 2sed *!$)$64$5$ Not .inding

Microsoft Excel 9.0 Sensiti!it" Report

Ad,usta-le 'ells

Final Re#uce# O$%ecti!e Allowa$le Allowa$leCell Name Value Cost Coefficient &ncrease 'ecrease

$.$10 Num-er of /omuter Alha ! 10 0 1*00 *!0 1530

$'$10 Num-er of /omuter .eta + *! 0 1800 1530 300

'onstraints

Final S(a#ow Constraint Allowa$le Allowa$le

Cell Name Value )rice R.*. Si#e &ncrease 'ecrease

$)$! La-orhours 2sed 800 7* 800 1530 **+

$)$+ Alha ! Min 2sed 10 *!0 10 119*+ 10

$)$ .eta + Min 2sed *! 0 1+ 1530

7


9/11

Exam I Spring 2002

1. %' pts& What is the optimal product mix for MS= computers?

a. =lpha ' / )B Ceta " / )

b. =lpha ' / )B Ceta " / >

c. =lpha ' / 1)B Ceta " / 2'

d. =lpha ' / 7))B Ceta " / >


2. %' pts& =n additional assembler can be hired full6time %1:) hours&. f the wae6rate for

assemblers is $1"hour should this additional assembler be hired?

a. +o# $1" exceeds the shadow price.

b. *es# the shadow price is larer than $1"hours.

c. +o# we are not within the allowable rane.

d. +ot enouh information. +eed to re6run the model.


. %' pts& Small Wonder# an amusement par3# experiences seasonalattendance. t has collected

attendance data by season. -he annual attendance for next year has been forecasted to be1"2" %in thousands&.

Quarter Park Attendance

(thousands)

all "2

Winter 1":

Sprin "17

Summer 1'

5etermine the forecast for next Sprin.

a. 12>

b. "17

c. ">1d. 2"7

e. none of the abo0e

>


10/11

Exam I Spring 2002

An internet bookstore that sells retail books had the following historical demand. Use the

following information to answer the next 4 uestions.

Year Book Sales

1 7731

* 83*

3 1

! 1030

+ 11+*!

1*381

7 1*88

8 1317

S2MMA:; thyear. %+-J@+J-

C,,HS-,@J&

a. ;#;1

b. 12#2>:

c. 12#;'>

d. 1#771


-he forecast in the eihth year was 12#1>7.

-he company uses / ).1).

= reression analysis was performed on the 7

years of data usin Jxcel. -he output is

below.

1)


11/11

Exam I Spring 2002

:. %2 pts& 4ompute the nai0e forecast for the >thyear. %+-J@+J- C,,HS-,@J&

a. ;#;1

b. 12#2>:

c. 1#1;>

d. 1#771


;. %' pts& 4ompute the reression analysis forecast for the >thyear. %+-J@+J-

C,,HS-,@J&

a. ;#;1

b. 1)#2;

c. 1'#'"7

d. 1;#)"'


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SP02Exam I White.doc