MSIS 3223 EXAM QUESTIONS WITH CORRECT ANSWERS
LATEST UPDATE
variable cost
unit variable cost x quantity produced
total cost
fixed cost + variable cost x quantity produced
demand
influence on profit by predicting how many units of a product will be sold
quantity produced
decision option typically based on demand
profit
revenue - variable cost - fixed cost
multiple outputs may be evaluated using one way data tables
true
two way data tables can evaluate only one output variable
true
net income
earnings before taxes - taxes
gross profit
sales - cost of goods sold
operating expenses
administrative expenses + selling expenses + depreciation expenses
net operating income
gross profit - operating expenses
earnings before taxes
net operating income - interest expense
predictive models
Predictive models focus on understanding the future
Practical business models focus on predicting financial performance, customer
retention, and product sales
Sales levels are often used to plan inventory levels
Predictive models usually involve multiple time periods
Predictive models incorporate the uncertainty element
optimization models
Optimization models have been used extensively in operation and supply chains,
finance, marketing, and other disciplines
Optimization is the process of selecting values of decisions variables that minimize or
maximize some quantity of interest
Objective function is the quantity that is to be minimized or maximized
Optimization is the most important tool in the prescriptive analytics
constraints in an optimization model
LATEST UPDATE
variable cost
unit variable cost x quantity produced
total cost
fixed cost + variable cost x quantity produced
demand
influence on profit by predicting how many units of a product will be sold
quantity produced
decision option typically based on demand
profit
revenue - variable cost - fixed cost
multiple outputs may be evaluated using one way data tables
true
two way data tables can evaluate only one output variable
true
net income
earnings before taxes - taxes
gross profit
sales - cost of goods sold
operating expenses
administrative expenses + selling expenses + depreciation expenses
net operating income
gross profit - operating expenses
earnings before taxes
net operating income - interest expense
predictive models
Predictive models focus on understanding the future
Practical business models focus on predicting financial performance, customer
retention, and product sales
Sales levels are often used to plan inventory levels
Predictive models usually involve multiple time periods
Predictive models incorporate the uncertainty element
optimization models
Optimization models have been used extensively in operation and supply chains,
finance, marketing, and other disciplines
Optimization is the process of selecting values of decisions variables that minimize or
maximize some quantity of interest
Objective function is the quantity that is to be minimized or maximized
Optimization is the most important tool in the prescriptive analytics
constraints in an optimization model
