C723 - MULTIPLE CHOICE QUESTIONS & ANSWERS
In a linear programming graph, which of the following describes the area that satisfies
all of the constraints?
Possible solution
Feasible region
Objective function
Cost minimization region - Answers - Feasible region
Acme Corp. makes couches and chairs using three main components: wood, foam, and
fabric. It takes 60 linear feet to make a couch and 35 to make a chair. It takes 30 hours
of labor to make a couch and 15 to make a chair. Couches sell for $800 and chairs for
$350.
The selling price would be part of which element?
Objective
Decision Variable
Constraint - Answers - Objective
Acme Corp. makes couches and chairs using three main components: wood, foam, and
fabric. It takes 60 linear feet to make a couch and 35 to make a chair. It takes 30 hours
of labor to make a couch and 15 to make a chair. Couches sell for $800 and chairs for
$350.
State the mathematical representation to show that the total number of linear feet of
wood for both couches (X) and chairs (Y) cannot exceed 5,000.
a. 60X + 35Y >= 5,00060X + 35Y >= 5,000
b. 35X + 60Y = 5,00035X + 60Y = 5,000
c. 60X + 35Y <= 5,00060X + 35Y <= 5,000 - Answers - This adds 60 linear feet for each
couch made to 35 linear feet for each chair made to arrive at total linear feet that cannot
be exceeded
c. 60X + 35Y <= 5,00060X + 35Y <= 5,000
Acme Corp. makes couches and chairs using three main components: wood, foam, and
fabric. It takes 60 linear feet to make a couch and 35 to make a chair. It takes 30 hours
of labor to make a couch and 15 to make a chair. Couches sell for $800 and chairs for
$350.
State the mathematical representation to show that the company must make at least 20
chairs to fill backorders.
,Y = 20
Y >= 20Y
Y <= 20 - Answers - = is not appropriate
< is making less than required
Therefore the correct answer is:
Y >= 20Y
Which of the following is the most important and primary step in setting up a linear
programming problem?
a. Determine the feasible region.
b. Define the problem.
c. Establish the constraints. - Answers - b. Define the problem.
Which of the following is the term used for the outcome decision to be made that is
governed by the constraints?
Bounded region
Objective function
Center point - Answers - Objective function
The cells listed in the By Changing Cells in the Solver window are referring to which of
the following?
Constraints
Decision variables
Objective function - Answers - Decision variables
Which of the following inventory costs would be a carrying cost?
a. Utilities for the warehouse.
b. Sending in a purchase order.
c. Inspecting incoming inventory. - Answers - a. Utilities for the warehouse.
A __________ has the following characteristics:
1. The endeavor is outside of the routine or operational activities.
2. The assignment is a temporary endeavor.
3. The goal has a start and end date.
4. Every task in the project is specific to the objective or goal of the project. - Answers -
project
, What is a benefit of using EOQ?
a. It is based on a probability coefficient.
b. It considers all inventory factors in the calculations.
c. It can minimize storage space used. - Answers - c. It can minimize storage space
used.
By ordering the right quantity, the chances of overstock are lessened.
Which of the following are two primary questions to answer when managing inventory?
a. How much money should be spent? How much inventory should be ordered?
b. How much inventory should be ordered? When should the orders be placed?
c. How much money should be spent? How frequently should the orders be placed? -
Answers - b. How much inventory should be ordered? When should the orders be
placed?
In the EOQ model, several numeric inputs are used in the formula. What is the final
mathematical step in using the EOQ formula?
Addition
Square of the total number
Take the square root - Answers - Take the square root
Which of the following products might be good options for planned inventory shortages?
Low demand items
Name brand items
High demand items - Answers - Inventory with low demand are good candidates for
planned inventory shortages
An appliance distributor expects to sell about 9,600 refrigerators next year. The annual
carrying cost is $16 per refrigerator, and the ordering cost is $75. The distributor
operates 288 days a year.
What is the economic order quantity for refrigerators?
128
34
300 - Answers - The whole problem is a square root
In a linear programming graph, which of the following describes the area that satisfies
all of the constraints?
Possible solution
Feasible region
Objective function
Cost minimization region - Answers - Feasible region
Acme Corp. makes couches and chairs using three main components: wood, foam, and
fabric. It takes 60 linear feet to make a couch and 35 to make a chair. It takes 30 hours
of labor to make a couch and 15 to make a chair. Couches sell for $800 and chairs for
$350.
The selling price would be part of which element?
Objective
Decision Variable
Constraint - Answers - Objective
Acme Corp. makes couches and chairs using three main components: wood, foam, and
fabric. It takes 60 linear feet to make a couch and 35 to make a chair. It takes 30 hours
of labor to make a couch and 15 to make a chair. Couches sell for $800 and chairs for
$350.
State the mathematical representation to show that the total number of linear feet of
wood for both couches (X) and chairs (Y) cannot exceed 5,000.
a. 60X + 35Y >= 5,00060X + 35Y >= 5,000
b. 35X + 60Y = 5,00035X + 60Y = 5,000
c. 60X + 35Y <= 5,00060X + 35Y <= 5,000 - Answers - This adds 60 linear feet for each
couch made to 35 linear feet for each chair made to arrive at total linear feet that cannot
be exceeded
c. 60X + 35Y <= 5,00060X + 35Y <= 5,000
Acme Corp. makes couches and chairs using three main components: wood, foam, and
fabric. It takes 60 linear feet to make a couch and 35 to make a chair. It takes 30 hours
of labor to make a couch and 15 to make a chair. Couches sell for $800 and chairs for
$350.
State the mathematical representation to show that the company must make at least 20
chairs to fill backorders.
,Y = 20
Y >= 20Y
Y <= 20 - Answers - = is not appropriate
< is making less than required
Therefore the correct answer is:
Y >= 20Y
Which of the following is the most important and primary step in setting up a linear
programming problem?
a. Determine the feasible region.
b. Define the problem.
c. Establish the constraints. - Answers - b. Define the problem.
Which of the following is the term used for the outcome decision to be made that is
governed by the constraints?
Bounded region
Objective function
Center point - Answers - Objective function
The cells listed in the By Changing Cells in the Solver window are referring to which of
the following?
Constraints
Decision variables
Objective function - Answers - Decision variables
Which of the following inventory costs would be a carrying cost?
a. Utilities for the warehouse.
b. Sending in a purchase order.
c. Inspecting incoming inventory. - Answers - a. Utilities for the warehouse.
A __________ has the following characteristics:
1. The endeavor is outside of the routine or operational activities.
2. The assignment is a temporary endeavor.
3. The goal has a start and end date.
4. Every task in the project is specific to the objective or goal of the project. - Answers -
project
, What is a benefit of using EOQ?
a. It is based on a probability coefficient.
b. It considers all inventory factors in the calculations.
c. It can minimize storage space used. - Answers - c. It can minimize storage space
used.
By ordering the right quantity, the chances of overstock are lessened.
Which of the following are two primary questions to answer when managing inventory?
a. How much money should be spent? How much inventory should be ordered?
b. How much inventory should be ordered? When should the orders be placed?
c. How much money should be spent? How frequently should the orders be placed? -
Answers - b. How much inventory should be ordered? When should the orders be
placed?
In the EOQ model, several numeric inputs are used in the formula. What is the final
mathematical step in using the EOQ formula?
Addition
Square of the total number
Take the square root - Answers - Take the square root
Which of the following products might be good options for planned inventory shortages?
Low demand items
Name brand items
High demand items - Answers - Inventory with low demand are good candidates for
planned inventory shortages
An appliance distributor expects to sell about 9,600 refrigerators next year. The annual
carrying cost is $16 per refrigerator, and the ordering cost is $75. The distributor
operates 288 days a year.
What is the economic order quantity for refrigerators?
128
34
300 - Answers - The whole problem is a square root
