Integrated Approach, 8th Edition R. Dan Reid
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,Reid & Sanders / Operations Management, 8th edition Test Bank
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Supplement Chapter A: Spreadsheet Modeling: An Introduction
LO Section Subsection Question #
What Are Models? Untitled Introduction 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 67,
68, 69, 70, 71, 72, 100, 101, 102,
103, 104, 105
The Spreadsheet Modeling Untitled Introduction 12, 13, 14, 15, 16, 73, 74, 75, 76,
Process 106, 107
Evaluating the Spreadsheet 17, 18, 19, 20, 21, 22, 23, 24, 25,
Model 77, 108, 109, 110
Constructing the Model 26, 78, 79, 111
Assessing Our Model 27, 28, 29, 30, 80, 112
Using the Model for Analysis 31, 32, 81, 82
Using Data Tables 33, 83, 84, 113, 114
Graphing the Model Results 115
Multiple-Criteria Decision Untitled Introduction 34, 35, 85
Making
Relative and Absolute Cell 36, 37, 38, 39, 40, 86, 87, 88, 89,
Referencing 90, 116, 117, 118
Entering Formulas in the 41, 42, 43, 44, 45, 46, 47, 48, 49,
Model 50, 51, 52, 53, 54, 55, 56, 57, 91,
92, 93, 94, 119, 120, 121, 122,
123
Useful Spreadsheet Tips Untitled Introduction 58, 59, 60, 61, 62, 63, 64, 95, 96,
97
Important Excel Formulas Untitled Introduction 65, 66, 98, 99, 124, 125, 126,
127, 128, 129
Ó John Wiley & Sons, Inc. or the author. All rights reserved. Instructors who are authorized
users of this course are permitted to download these materials and use them in connection with
the course. Except as permitted herein or by law, no part of these materials should be
reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise.
©2023 John Wiley & Sons, Inc. All rights reserved. TB A-1
,Reid & Sanders / Operations Management, 8th edition Test Bank
Multiple Choice
1. Which of the following models is “built” in the user’s head and represents the most common
form of model?
a) physical model
b) mathematical model
c) mental model
d) spreadsheet model
e) visual model
Answer: c
Solution: The most common model is mental, which we “build” in our heads and use to make
decisions. The traffic-light situation calls for a mental model.
Section Ref: What Are Models?
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Knowledge
Learning Objective 1: Explain what models are and why they are used.
AACSB: Knowledge
Time on Task: 1 min
2. A road atlas represents which type of model?
a) physical model
b) mathematical model
c) mental model
d) spreadsheet model
e) visual model
Answer: e
Solution: Visual models use graphics or diagrams to represent real objects or situations. For
example, a road atlas represents a system of roads and other key land features.
Section Ref: What Are Models?
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Knowledge
Learning Objective 1: Explain what models are and why they are used.
AACSB: Knowledge
Time on Task: 1 min
3. Which of the following models involves objects that represent other objects?
a) physical model
b) mathematical model
c) mental model
©2023 John Wiley & Sons, Inc. All rights reserved. TB A-2
,Reid & Sanders / Operations Management, 8th edition Test Bank
d) spreadsheet model
e) visual model
Answer: a
Solution: Physical models involve objects that represent other objects, such as an architect’s
scale model of a new building.
Section Ref: What Are Models?
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Knowledge
Learning Objective 1: Explain what models are and why they are used.
AACSB: Knowledge
Time on Task: 1 min
4. Which of the following models uses equations and relationships among quantities to represent
situations?
a) physical model
b) mathematical model
c) mental model
d) spreadsheet model
e) visual model
Answer: b
Solution: Mathematical models use equations and relationships among quantities to represent
situations. Many of the concepts in this textbook are shown through the use of mathematical
models.
Section Ref: What Are Models?
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Knowledge
Learning Objective 1: Explain what models are and why they are used.
AACSB: Knowledge
Time on Task: 1 min
5. Which of the following is a means of implementing mathematical models?
a) physical model
b) spiritual model
c) mental model
d) spreadsheet model
e) visual model
Answer: d
Solution: Spreadsheet models are a means of implementing mathematical models.
Section Ref: What Are Models?
©2023 John Wiley & Sons, Inc. All rights reserved. TB A-3
,Reid & Sanders / Operations Management, 8th edition Test Bank
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Knowledge
Learning Objective 1: Explain what models are and why they are used.
AACSB: Knowledge
Time on Task: 1 min
6. Controllable inputs are also called
a) decision variables.
b) parameters.
c) regulated inputs.
d) regulated variables.
e) dominant variables.
Answer: a
Solution: Controllable inputs, also called decision variables, are quantities or factors that a
decision maker can change (usually within limits) for the current situation.
Section Ref: What Are Models?
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Knowledge
Learning Objective 1: Explain what models are and why they are used.
AACSB: Knowledge
Time on Task: 1 min
7. Uncontrollable inputs are also called
a) decision variables.
b) parameters.
c) unregulated inputs.
d) unregulated variables.
e) recessive variables.
Answer: b
Solution: Uncontrollable inputs, sometimes called parameters, are quantities or factors that are
important to the situation but are outside the decision maker’s direct control.
Section Ref: What Are Models?
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Knowledge
Learning Objective 1: Explain what models are and why they are used.
AACSB: Knowledge
Time on Task: 1 min
©2023 John Wiley & Sons, Inc. All rights reserved. TB A-4
,Reid & Sanders / Operations Management, 8th edition Test Bank
8. A model ______ inputs into ______.
a) estimates; transformation
b) transmits; estimates
c) transforms; outputs
d) makes; parameters
e) modifies; decision variables
Answer: c
Solution: What models do, then, is to transform inputs into outputs.
Section Ref: What Are Models?
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Knowledge
Learning Objective 1: Explain what models are and why they are used.
AACSB: Knowledge
Time on Task:1 min
9. A model needs to do more than transform inputs to outputs; it must also
a) modify the process.
b) adjust the controllable inputs.
c) have a purpose.
d) control the output.
e) be accurate.
Answer: c
Solution: A model, however, needs to do more than transform inputs to outputs; it must have a
purpose. That is, we need to know how a model will help us make a decision.
Section Ref: What Are Models?
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Comprehension
Learning Objective 1: Explain what models are and why they are used.
AACSB: Knowledge
Time on Task: 1 min
10. Models can also be described as
a) an abstraction of the real situation.
b) an accurate representation of the real situation.
c) the decision.
d) absolute representation of reality.
e) a general view of reality.
Answer: a
©2023 John Wiley & Sons, Inc. All rights reserved. TB A-5
,Reid & Sanders / Operations Management, 8th edition Test Bank
Solution: A model is a purposeful representation of the key factors in a situation and the
relationships among them. It is an abstraction of the real situation, and should incorporate
enough detail so the results meet the current needs, but omit unnecessary details.
Section Ref: What Are Models?
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Knowledge
Learning Objective 1: Explain what models are and why they are used.
AACSB: Knowledge
Time on Task: 1 min
11. An ______ is a quantity or factor that depends on how the inputs are related to one another.
a) observation
b) element
c) equation
d) integer constraint
e) output
Answer: e
Solution: Models also have outputs. An output is a quantity or a factor that depends on how the
inputs are related to one another.
Section Ref: What Are Models?
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Knowledge
Learning Objective 1: Explain what models are and why they are used.
AACSB: Knowledge
Time on Task: 1 min
12. One of the first things you must do in developing a model is
a) select the correct modeling software.
b) consult a transformation textbook.
c) determine the formulas that are required.
d) define the logic necessary to transform the inputs into the outputs.
e) backwards calculate what inputs are required for the defined inputs.
Answer: d
Solution: In order to develop an effective spreadsheet model, the first step is to define the logic
necessary to transform the inputs into the outputs.
Section Ref: The Spreadsheet Modeling Process
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Knowledge
Learning Objective 2: Describe the spreadsheet modeling process.
©2023 John Wiley & Sons, Inc. All rights reserved. TB A-6
,Reid & Sanders / Operations Management, 8th edition Test Bank
AACSB: Knowledge
Time on Task: 1 min
13. A ______ is a specific set of conditions that could occur in the real situation.
a) parameter
b) scenario
c) sensitivity set
d) break-even set
e) circumstance
Answer: b
Solution: Two common types of analysis are scenario analysis and sensitivity analysis. A
scenario is a specific set of conditions that could occur in a real situation.
Section Ref: The Spreadsheet Modeling Process
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Knowledge
Learning Objective 2: Describe the spreadsheet modeling process.
AACSB: Knowledge
Time on Task: 1 min
14. Research has shown that most spreadsheet developers believe their products
a) accurately reflect reality.
b) are error-free.
c) are the best solution.
d) are eloquent solutions to the decision.
e) deserve more credit.
Answer: b
Solution: Research has shown that most spreadsheet model developers believe their products to
be error-free, but this assessment is usually wrong!
Section Ref: The Spreadsheet Modeling Process
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Comprehension
Learning Objective 2: Describe the spreadsheet modeling process.
AACSB: Knowledge
Time on Task: 1 min
15. ______ analysis deals with studying the changes to the output of the model as one or more of
the inputs change.
a) Scenario
b) Transformation
©2023 John Wiley & Sons, Inc. All rights reserved. TB A-7
, Reid & Sanders / Operations Management, 8th edition Test Bank
c) Decision
d) Sensitivity
e) Change
Answer: d
Solution: Two common types of analysis are scenario analysis and sensitivity analysis.
Sensitivity analysis involves studying the changes to the output of the model (e.g., profit) as one
or more of the inputs (e.g., demand) change.
Section Ref: The Spreadsheet Modeling Process
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Knowledge
Learning Objective 2: Describe the spreadsheet modeling process.
AACSB: Knowledge
Time on Task: 1 min
16. Break-even analysis is one special case of ______ analysis.
a) scenario
b) transformation
c) sensitivity
d) decision
e) change
Answer: c
Solution: Sensitivity analysis helps to identify the inputs that cause the most change in the
output. Break-even analysis is one special case of sensitivity analysis.
Section Ref: The Spreadsheet Modeling Process
Subsection Ref: Untitled Introduction
Level: Easy
Bloom’s: Comprehension
Learning Objective 2: Describe the spreadsheet modeling process.
AACSB: Knowledge
Time on Task: 1 min
17. If the model produces the numerically correct values for the outputs for the current values of
the inputs, it is said to be
a) flexible.
b) adjustable.
c) a transformation.
d) accurate.
e) correct.
Answer: e
©2023 John Wiley & Sons, Inc. All rights reserved. TB A-8