MAT 540 Quiz bank Test bank Introduction to Management Science, 10e (Taylor) Solve your MAT540 Quizzes with 100% Score-converted-

MAT 540 Quiz bank (Test bank) Solve your MAT/540 Quizzes with 100% Score All the questions are answered and tested for 100% Accuracy. If you want to purchase (for $150) follow the link: 540-All Solution will be downloaded immediately after payment. Solutions are categorize in 16 chapters, each chapter is a .doc fomrat. Email me to get $20 discount by paying direct to my paypal. ACE your class Introduction to Management Science, 10e (Taylor) Chapter 1 Management Science 1) Management science involves the philosophy of approaching a problem in a subjective manner. 2) Management science techniques can be applied only to business and military organizations. 3) Once management scientist makes his or her decision and recommendation to management, then typically, his or her involvement with the problem is finished. 4) A variable is a value that is usually a coefficient of a parameter in an equation. 5) Parameters are known, constant values that are usually coefficients of variables in equations. 6) Data are pieces of information from the problem environment.7) A model is a mathematical representation of a problem situation including variables, parameters, and equations. 8) A management science technique usually applies to a specific model type. 9) The first step of the management science process is to define the problem. 10) Management science modeling techniques provide results that are known with certainty. 11) The term sensitivity analysis refers to testing how a problem solution reacts to changes in one or more of the model parameters. 12) Fixed costs depend on the number of items produced. 13) Variable costs depend on the number of items produced. 14) Fixed cost is the difference between total cost and total variable cost. 15) The break-even point is the volume that equates total revenue with total cost. 16) In general, an increase in price increases the break even point if all costs are held constant. 17) If variable costs increase, but price and fixed costs are held constant, the break even point will decrease. 18) Managers utilize spreadsheets to conduct their own analyses in management science studies. 19) Management science techniques focus primarily on observation, model construction and implementation to find an appropriate solution to a problem. 20) Management science modeling techniques focus on model construction and problem solution. 21) Decision Support Systems (DSS) use computers to help decision makers address complex problems.22) Enterprise Resource Planning (ERP) system is a data oriented decision support system that utilizes specific management science solution procedures to solve individual problems such as costvolume analysis. 23) A __________ is a symbol used to represent an item that can take on any value. 24) __________ are known, constant values that are coefficients of variables in equations. 25) __________ are pieces of information from the problem environment. 26) A __________ is a functional relationship including variables, parameters, and equations. 27) Management science techniques include __________ techniques, models that are represented as diagrams, presenting a pictorial representation of the system being analyzed. 28) __________ techniques provide results that contain uncertainty, unlike mathematical programming techniques which are deterministic. 29) __________ costs are independent of the volume of goods produced and remain constant. 30) __________ depend on the number of items produced. 31) Total revenue minus total cost equals __________ . 32) The __________ is the volume that equates total revenue with total cost. 33) A __________ represents a limitation to achieving maximum profits due to limited resources. 34) A __________ programming technique refers to a predetermined set of mathematical steps used to solve a problem. 35) A __________ is a computer-based system that helps decisionmakers address complex problems that involve different parts of an organization and operations.36) The relationship d = 5000 - 25p describes what happens to demand (d) as price (p) varies. Price can vary between $10 and $50. How many units can be sold when the price is $10? 37) The supplier of cans for Coors Brewery, Valley Metal Container, uses a __________ to determine the weekly production schedule for cans in order to meet brewery demand. 38) A production process requires a fixed cost of $50,000. The variable cost per unit is $25 and the revenue per unit is projected to be $45. Write a mathematical expression for total cost. 39) A production process requires a fixed cost of $50,000. The variable cost per unit is $25 and the revenue per unit is projected to be $45. Write a mathematical expression for total revenue. 40) A production process requires a fixed cost of $50,000. The variable cost per unit is $25 and the revenue per unit is projected to be $45. Write a mathematical expression for total profit. 41) A production process requires a fixed cost of $50,000. The variable cost per unit is $25 and the revenue per unit is projected to be $45. Find the break-even point. 42) A production process requires a fixed cost of $50,000 and the variable cost per unit is $25. The revenue per unit was projected to be $45 but a recent marketing study shows that because of an emerging competitor, the revenue will be about 12% lower. How does this affect the break even point? 43) Administrators at a university will charge students $150 to attend a seminar. It costs $3000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $25 per student for the administrators to provide the course materials. How many students would have to register for the seminar for the university to break even? 44) Administrators at a university are planning to offer a summer seminar. It costs $3000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $25 per student for the administrators to provide the course materials. If we know that 20 people will attend, what price should be charged per person to break even? 45) Administrators at a university are planning to offer a summer seminar. It costs $3000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $25 per student for theadministrators to provide the course materials. If 30 students attend the seminar, how much of a profit (or loss) will be incurred? 46) A newly opened bed-and-breakfast projects the following: Monthly fixed costs $8000 Variable cost per occupied room per night $40 Revenue per occupied room per night $165 Write the expression for total cost per month. 47) A newly opened bed-and-breakfast projects the following: Monthly fixed costs $8000 Variable cost per occupied room per night $40 Revenue per occupied room per night $165 Write the expression for total revenue per month. 48) A newly opened bed-and-breakfast projects the following: Monthly fixed costs $8000 Variable cost per occupied room per night $40 Revenue per occupied room per night $165 How many rooms would have to be occupied per month in order to break even? 49) A script writer has received an advance against royalties of $10000. The royalty rate is $2 for every performance in the US, and $3 for every performance outside the US. Define variables for this problem. 50) A script writer has received an advance against royalties of $10,000. The royalty rate is $2 for every performance in the US, and $3 for every performance outside the US. Write an expression that could be used to compute the number of performances in order to cover the advance.51) Students are organizing a "Battle of the Bands" contest. They know that at least 100 people will attend. The rental fee for the hall is $150 and the winning band will receive $500. In order to guarantee that they break even, how much should they charge for each ticket? 52) A manufacturer buys peas for vegetable pies from 2 cooperatives. The price per unit is $6 from cooperative A, and $5.50 per unit from cooperative B. Define variables that would tell how many units to purchase from each source. 53) A manufacturer buys peas for vegetable pies from 2 cooperatives. The price per unit is $6 from cooperative A, and $5.50 per unit from cooperative B. Develop an objective function that would minimize the total cost. 54) A manufacturer buys peas for vegetable pies from 2 cooperatives. The price per unit is $6 from cooperative A, and $5.50 per unit from cooperative B. The manufacturer needs at least 12000 units of peas. Cooperative A can supply up to 8000 units, and cooperative B can supply at least 6000 units. Develop constraints for these conditions. 55) A manager of the cereal bar at the college campus has determined that the profit made for each bowl of Morning Buzz cereal sold, x, is equal to: Z = $4x - 0.5x. Each bowl of Morning Buzz weighs 6 ounces, and the manager has 12 lbs (192 ounces) of cereal available each day, which can be written as the constraint, 6x ≤192. How much profit will be made from Morning Buzz if it is all sold in one day? 56) The College Coffee Café buys tea from 3 suppliers. The price per pound is $15.00 from supplier A, $17.50 from supplier B, and $21.00 from supplier C. They have budged $175 to purchase the tea. The café needs at least 12 pounds of tea, and supplier C can supply no more than 4 pounds. Develop constraints for these conditions. 57) The College Coffee Café receives a profit of $1.25 for each cup of house tea that they sell, $1.40 for each cup of the premium brand, and $1.50 for each cup of their special blend that they sell. Develop an objective that maximizes profit. 58) The steps of the management science process are: A) problem definition, model construction, observation, model solution, implementation.B) observation, problem definition, model construction, model solution, implementation. C) model construction, problem definition, observation, model solution, implementation. D) observation, implementation, problem definition, model construction, model solution. 59) A model is a functional relationship that includes: A) variables B) parameters C) equations D) all of the above 60) Which of the following is an equation or an inequality that expresses a resource restriction in a mathematical model? A) a decision variable. B) data C) an objective function. D) a constraint. E) a parameter. 61) Which of the following is incorrect with respect to the use of models in decision making? A) they improve understanding of the problem B) they promote subjectivity in decision making C) they are generally easy to use D) they provide a systematic approach to problem solving 62) The field of management scienceA) approaches decision making rationally with techniques based on the scientific method B) is another name for decision science and for operations research C) concentrates on the use of quantitative methods to assist managers in decision making D) all of the above 63) The processes of problem observation A) cannot be done until alternatives are proposed B) requires consideration of multiple criteria C) is the first step of decision making D) is the final step of problem solving 64) The limits of the problem and the degree to which it pervades other units in the organization must be included during the __________ step of the management science process. A) observation B) definition C) solution D) implementation 65) __________ involves determining the functional relationship between variables, parameters and equations A) Problem observation B) Problem definition C) Model construction D) Model solution E) Model implementation66) Which steps of the management science process can either be a recommended decision or information that helps a manager make a decision? A) model implementation B) model construction C) problem definition D) model solution E) problem formulation 67) The quantitative analysis approach requires A) mathematical expressions for the relationship B) uncomplicated problems C) the manager to have prior experience with similar problems D) all of the above 68) The result of an effective decision making process should be monitored in order to A) reveal wrong assumptions B) reveal errors in the implementation C) insure the achievement of desired results D) all of the above 69) The management science process does not include A) problem definition B) feedback C) implementation D) subjective preferenceE) information 70) The indicator that results in total revenues being equal to total cost is called the A) marginal cost B) marginal volume C) break-even point D) profit mix 71) Variable cost A) depends on the number of units produced B) plus marginal cost equals fixed cost C) is equal to total cost in deterministic models D) is the same as average cost 72) The components of break-even analysis are A) cost and profit B) volume and cost C) volume, cost and profit D) volume and profit 73) __________ are generally independent of the volume of units produced and sold. A) Fixed costs B) Variable costs C) Profits D) average cost74) The purpose of break-even analysis is to determine the number of units of a product to sell that will A) appeal to the consumer B) result in a profit C) result in a loss D) result in zero profit 75) Variable cost does not include A) raw materials and resources B) staff and management salaries C) material handling and freight D) direct labor and packaging 76) Which variable is not a component of break-even analysis?