Coopersmith Quantitative Analysis

The instantaneous replenishment assumption for the EOQ model means the lead time is 0 True/False

False

Changing the right hand side of a non-redundant constraint causes a change in the

Feasible region

A large office building has one plumber who is responsible for repairs on the building's plumbing, If the plumbing in one part of the building needs to be repaired, the plumber is called to make the repair. If the plumber is busy, the plumbing must wait to be repaired. This is an example of a _________________system.

Finite proportion

If the EOQ assumptions are met and a company orders the EOQ, then the annual total holding cost will be ________ the total annual ordering cost

Greater than

The verification process involves making sure that the model is ________________ and logical.

Internally consistent

If the EOQ assumptions are met and a company orders the EOQ each time an order is placed, then the total of all _______ is minimized

Inventory cost

An advantage of a simulation is:

It is relatively straightforward

If the feasible region gets larger due to a change in one of the constraints, the optimal value of the objective function must increase or remain the same for a maximization problem True/False?

True

Quantitative analysis is a logical, rational, and specific approach to decision making True/False?

True

Simulation is a technique that can be used for studying more complex problems True/False?

True

A graphical method should only be used to solve an LP problem when there are only ___ variables

Two

In a multichannel, single-phase queuing system, the arrival will pass through at least ___different service facilities.

Two

The__________ for a system is defined as the proportion of the time the service facilities are in use.

Utilization factor

In an LP problem, at least one corner point must be ________ if an optimal solution exists

An optimal solution

All are assumptions of M/M/1 models:

Arrivals come from an infinite or very large population. Arrivals are Poisson distributed. Service times follow the exponential distribution. The average arrival rate is faster than the average service rate.

A company is considering opening one new production facility, and 4 locations are being considered. for this facility location problem, ___________ transportation models must be developed and solved

5

The annual purchase cost is not considered to be a relevant inventory cost if the EOQ assumptions are met because because this cost is ______ and not affected by the order quantity

Constant

Decision variables are ____________

Controllable

In solving a linear program, no feasible solution exists, to solve this problem, we might add another constraint True/False?

False

Manufacturers use MRP when the demand for each product is independent of the demand for other products True/False?

False

Sensitivity analysis is most often associated with implementing the results in the quantitative analysis approach True/False?

False

Simulation typically usually interferes with real-world systems True/False?

False

If a non-redundant constraint is removed from an LP problem, then the feasible region will get

Larger

In the production run model, the maximum inventory will be ________ the production quantity?

Less than

The overall significance of a regression model is tested using an F test. The model is significant if the significance level of the F value is ___

Low

A just in time system will usually result in a ________ cost

Low annual

A large city is planning for the NCAA basketball tournament. The transportation system is being evaluated to see what expansion is needed to handle the large number of visitors to the games, the _______ model would most likely help the planners determine the current capacity of the system

Maximal-flow

The minimum EOL criterion will always result in the same decision as the __________

Maximum EMV criterion

Using LP to maximize audience exposure in an advertising campaign is an example of the type of LP application also known as___________

Media selection

The ________________ model is used to determine how to connect all points of a network together while minimizing the total distance between them

Minimal spanning tree

In a typical shortest route model, the objective is to ______ the time or distance to get from one point to another

Minimize

When applying LP to diet problems, the objective function is usually to _________ the costs of nutrient blends

Minimize

Customers call customer support and request the department they would like to speak to, and then they are transferred to that department. This is an example of a _____________ system.

Multiphase

The inventory position is defined as the total on hand inventory plus the ______ inventory

On order

Three machines are being assigned to four manufacturing jobs, one of the jobs will be delayed until one of the machines becomes available after finishing the job. To allow specialized software to find the solution to this problem ___ dummy machine must be used in this model

One

When alternate optimal solutions exist in an LP problem, then the objective function will be ________ to one of the constraints

Parallel

An input for a model is an example of a _______________

Parameter

Basic components of inventory control systems:

Planning what inventory to stock and how to acquire it, forecasting the demand for parts and products, controlling inventory levels

The selection of specific investments from among a wide variety of alternatives is the type of LP problem known as the ______________

Portfolio selection problem

In performing a cost analysis of a queuing system, the waiting time cost is sometimes based on the time in the queue and sometimes based on the time in the system. The waiting cost should be based on time in the system for which of the following situations?

Post office

The ___________ category of business analytics involves the use of optimization models

Prescriptive

The validation process involves making sure that the model adequately represents the ___________system.

Real-world

When using regression, an error is also called a

Residual

If probabilities are available to the decision maker, then the decision making environment is called ____

Risk

Before using exponential distributions to build queuing models, the quantitative analyst should determine if the_______________ fit the distribution.

Service time data

In decision theory probabilities are most associated with _________ __ _____

States of nature

If the EOQ assumptions are met then the following are true:

The annual stockout cost will be 0, the total annual holding cost, will equal the total annual ordering cost, and the average inventory, will be one-half the order quantity.

The reorder point is the amount of inventory that would be required to meet demand during the lead True/False?

True

When using a graphical solution procedure, the region bounded by the set of constraints is usually called the feasible region True/False?

True

The EVSI equals the ___ with sample information assuming no cost for the information minus the EMV without sample information

EMV

A queuing system described as M/D/2 would have ___________ service times.

Constant

In asserting utility values, the worst outcome is given a utility of _

0

One of the assumptions in regression analysis is that the errors have a mean of _

0

An assignment problem may be viewed as a transportation problem when all supplies and demands equal to _

1

Using simulation for a queuing problem would be appropriate if there is a ____ chance an arrival would leave before receiving service.

10%

The efficiency of sample information would be ___ if it were perfect

100%

If a transportation problem has three sources and eight destinations, the linear program for this will have __ variables and __ constraints

24, 11

Conditional value or payoff

A consequence, normally expressed in a monetary value, that occurs as a result of a particular alternative and state of nature.

Alternative

A course of action or a strategy that may be chosen by a decision maker.

Data analytics

A data-driven approach to decision making that allows companies to make better decisions.

Decision making under risk

A decision-making environment in which several outcomes or states of nature may occur as a result of a decision or alternative. The probabilities of the outcomes or states of nature are known.

Decision making under uncertainty

A decision-making environment in which several outcomes or states of nature may occur. The probabilities of these outcomes, however, are not known.

Decision making under certainty

A decision-making environment in which the future outcomes or states of nature are known.

Parameter

A measurable input quantity that is inherent in a problem.

Variable

A measurable quantity that is subject to change.

Deterministic model

A model in which all parameters used in the model are known with complete certainty.

Probabilistic model

A model in which all values used in the model are not known with certainty but rather involve some chance or risk, often measured as a probability value.

Mathmatical model

A model that uses mathematical equations and statements to represent the relationships within the model.

Conditional probability

A posterior probability.

Sensitivity analysis

A process that when analyzing the results involves determining how sensitive a solution is to changes in the formulation of a problem.

Quantitative analysis or management science

A scientific approach that uses quantitative techniques including logic and rationale as tools in decision making.

Algorithm

A set of logical and mathematical operations performed in a specific sequence.

In decision theory terminology, an _________ is a course of action or strategy that may be chosen my a decision maker

Alternative

On a decision tree, once the tree has been drawn and the payoffs and probabilities have been placed on the tree, the analysis is done by working __________

Backward

Input data

Data that are used in a model in arriving at the final solution.

The percentage of the variation in the dependent variable that is explained by a regression equation is measured by the coefficient of _____________

Determination

A___________ model is one in which all of the parameters used in the model are known with complete certainty

Deterministic

In LP, variables do not have to be integer valued and may take on any fractional value, this assumption is called:

Divisibility

On a decision tree, at each state of nature node, an ___ is calculated

EMV

When simulating the Monte Carlo experiment, the average simulated demand over the long run should approximate the _______________.

Expected demand

The most that a person should pay for perfect information and the minimum expected opportunity loss is equal to the ___________

Expected value of perfect

Most systems use the queue discipline known as the _________rule.

FIFO

A decision tree is preferable to a decision table when probabilities are available True/False?

False

If a linear program is unbounded, the problem probably has not been formulated correctly, the most likely cause of this is that a unnecessary constraint was added to the problem True/False?

False

In a regression model, Y is called the independent variable True/False?

False

In a regression model, if every sample point is on the regression line (all errors are 0), then the correlation coefficient would be 0 True/False?

False

Valid uses of inventory:

The decoupling function, to avoid shortages and stockouts, to smooth out irregular supply and demand

In the optimal solution to a linear program, there are 30 units of slack for a constraint, from this we know that:

The dual price for this constraint is 0

Break-even point

The quantity of sales that results in zero profit.

Descriptive analysis

The study and consolidation of historical data to describe how a company has performed in the past and how it is performing now.

Prescriptive analysis

The use of optimization methods to provide new and better ways to operate based on specific business objectives.

Predictive analysis

The use of techniques to forecast how things will be in the future based on patterns of past data.

A good regression model should have a high r2 and a low significance level for the F test True/False?

True

A new variable should not be added to a multiple regression model if that variable causes the adjusted r2 to decrease True/False?

True

A quantity that provides a measure of how far each sample point is from the regression line is the SSE True/False?

True

A simulation model is designed to arrive at multiple numerical answers to a given problem True/False?

True

An LP problem has a bounded feasible region. If this problem has an equality (=) constraint, then the feasible region must consist of a line segment True/False?

True

Both qualitative and quantitative aspects should be studied when analyzing a problem True/False?

True

The point at which total revenue equals total cost (meaning zero profit) is called the _______________

break-even point

All of the following would have a FIFO queue discipline:

fast food restaurant, post office, checkout line at grocery store, emergency room at a hospital