Ops Final Exam Study Guide Part 1

Slack variables are only associated with maximization problems.

False

The break even point is the volume that the profit is positive (greater than zero).

False

The Pinewood Furniture Company produces chairs and tables from two resources: labor and wood. The company has 120 hours of labor and 100 board-ft. of wood available each day. Demand for table is limited to 8 per day. Each chair requires 3 hours of labor and 4 board-ft. of wood, whereas a table requires 20 hours of labor and 9 board-ft. of wood. The profit derived from each chair is $100 and from each table is $500. The company wants to determine the number of chairs and tables to produce each day in order to maximize profit. The correct linear programming model formulation of this problem is:

Max Z = 100x1 + 500x2 Subject to: 3x1 + 20x2 ≤ 120 4x1 + 9x2 ≤ 100 x2 ≤ 8 x1, x2 ≥ 0

When building a chair, a carpenter uses 2 pounds of wood and 3 ounces of glue. If the Carpenter has 3 pounds of wood and 6 ounces of glue, how many chairs will he/she be able to build?

one chair

A company can compete on cost by:

producing standardized products for larger markets

Australian road freight company Linfox uses aerodynamic trucks and trailers to reduce fuel consumption. This is a case of generating higher

productivity

Optimizing variance in final output can augment

quality

Fixed cost include

staff and management salaries

Which of the following constraints has no feasible region?

x1 + x2 greater or equal than 100 and x1 + x2 less or equal than 50

Consider the following linear programming problem: Max Z = $15x + $20y Subject to: 8x + 5y ≤ 40 0.4x + y ≥ 4 x, y ≥ 0 Considering that the values for x and y that will maximize revenue are respectively x = 0 and y = 8, what is the amount of slack associated with the first constraint - in the optimal point?

0

____________ refers to the ability of an organization to sell products in a market.

Business competitiveness

Administrators at a university are planning to offer a summer seminar. It costs $4000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $45 per student for the administrators to provide the course materials. If we know that 100 people will attend, what price should be charged per person to break even?

85

Six Sigma is a quality management approach that seeks to identify and remove the causes of problems in the operations process, achieving virtually defect-free production. Which of the following will directly contribute to six sigma quality management process?

Continuous improvement of processes Reduce variance in final output Strictly conforming to standards Answer: All of the above are correct

John's house is on fire and he is inside...he doesn't have to much time, so the only thing he can do is to run as faster as possible to the outside. Unfortunately, he has a relatively small backpack which helps him to carry at most 40 lbs. Possessing a discriminating eye, he can immediately determine how much the items worth. There are 4 different items available. His aim is to maximize the dollar value of the stuff carried away, the overall weight being less than the weight he can carry by using his backpack. Weight and value of each item is given in the following table. Item Weight Value Available 1 30 15 1 2 18 12 1 3 50 45 1 4 24 20 1 What will be the first item that he should choose?

Item 4

Cadbury's chocolate operations in Tasmania does produce greenhouse emissions, but is taking steps to reduce those emissions. This is an example of:

Socially responsible and ethical management

Consider the following linear programming problem: Max Z = 4x1 + 2x2 Subject to: x1 less or equal than 4 x2 less or equal than 2 x1, x2 ≥ 0 The Z obtained from the best combination of x2 and x1 is:

20

Consider the following linear programming problem: Max Z = $200x1 + $100x2 Subject to: 8x1 + 5x2 ≤ 80 2x1 + x2 ≤ 100 x1, x2 ≥ 0 What is maximum Z and the value of x1 and x2 at the optimal solution?

Z = 2000; x1 = 10; and x2 = 0

Promoting a sense of urgency within the organization can help:

competing on speed of delivery

If by processing the same amount of inputs used in the past, a company is now capable to produce a _________ amount of inputs, it means that an improvement of productivity was achieved.

greater

Strictly conforming to design specifications enables

quality competitiveness