Management Science
Test Questions
Course Introduction
Management Science is a discipline that applies analytical methods and quantitative techniques to aid decision-making and solve complex problems within organizations. This course introduces students to models and tools such as linear programming, simulation, decision analysis, forecasting, and inventory management, which are used to structure, analyze, and optimize business operations. Students learn how management science supports strategic planning, resource allocation, and operational efficiency, bridging theory and practice through case studies, real-world applications, and the use of specialized software. The course equips future managers with a systematic and evidence-based approach to problem-solving in various business contexts.
Recommended Textbook
Managerial Decision Modeling with Spreadsheets 3rd Edition by Nagraj Balakrishnan
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12 Chapters
583 Verified Questions
583 Flashcards
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Chapter 1: Introduction to Managerial Decision Making
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41 Verified Questions
41 Flashcards
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Sample Questions
Q1) A hotel typically incurs a cost of $45 to clean each room before guest arrival.Each room generates revenue of $155.00 per night.Using Goal Seek,how many rooms must be occupied nightly in order to realize a daily profit of $20,000?
Answer: 11ea3b58_9b36_768e_ba0c_6fe2d2f1ff99_TB1469_00
Q2) At the break-even point (BEP),total profit is typically greater than zero.
A)True
B)False
Answer: False
Q3) In dealing with business models,managers need to consider only quantitative data while making decisions in practice.
A)True
B)False
Answer: False
Q4) One possible problem in decision modeling is for analysts to have conflicting viewpoints.
A)True
B)False
Answer: True
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3
Chapter 2: Linear Programming Models: Graphical and Computer Methods
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48 Verified Questions
48 Flashcards
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Sample Questions
Q1) Consider the following linear programming model: \[\begin{array} { l } \text { Max } \quad \mathrm { X } _ { 1 } ^ { 2 } + \mathrm { X } _ { 2 } + 3 \mathrm { X } _ { 3 } \\
\text { Subject to: } \\ \qquad \begin{array} { l }
\mathrm { X } _ { 1 } + \mathrm { X } _ { 2 } \leq 3 \\
\mathrm { X } _ { 1 } + \mathrm { X } _ { 2 } \leq 1 \\
\mathrm { X } _ { 1 } , \mathrm { X } _ { 2 } \geq 0
\end{array}
\end{array}\]
This problem violates which of the following assumptions?
A)certainty
B)proportionality
C)divisibility
D)linearity
E)integrality
Answer: D
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4
Chapter 3: Linear Programming Modeling Applications with Computer Analyses in Excel
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49 Verified Questions
49 Flashcards
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Sample Questions
Q1) The "Diet" problem can be classified as an "ingredient blending" linear programming application.
A)True
B)False
Answer: True
Q2) Refer to the information above.The company wants to come up with an optimal shipping strategy to minimize its total shipping cost.Use Excel to formulate and solve this problem.
Answer: 11ea3b58_9b43_6f18_ba0c_0d4de85622a8_TB1469_00
Q3) Refer to the information above.Assume that the road leading from factory F1 to retail outlet R1 is currently closed due to construction.How will this affect the shipping cost? Use Excel to formulate and solve this problem.
Answer: 11ea3b58_9b43_e44a_ba0c_13ba173601f4_TB1469_00
Q4) The "Transportation" problem involves determining the amount of goods to be transported from a number of origins to a number of destinations.
A)True
B)False
Answer: True
Page 5
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Chapter 4: Linear Programming Sensitivity Analysis
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44 Verified Questions
44 Flashcards
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Sample Questions
Q1) Surplus is typically associated with " " constraints.
A)True
B)False
Q2) Surplus is typically associated with which type of constraints?
A)
B) C)= D)
E)±
Q3) As long as the objective function coefficient for a given variable increases within its allowable increase,the current optimal solution remains the same
A)True
B)False
Q4) The slack values in the Answer Report can refer to either slack or surplus values based on the type of the inequality.
A)True
B)False
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Chapter 5: Transportation, Assignment, and Network Models
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37 Verified Questions
37 Flashcards
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Sample Questions
Q1) It is possible to solve small assignment problems by enumerating all possible outcomes rather than modeling them as linear programming problems.
A)True
B)False
Q2) Refer to the figure.What is the constraint associated with node 6?
A)X + X = 0
B)X + X = 1
C)X + X - X = 1
D)X + X - X = -1
E)X + X - X = 0
Q3) Refer to the figure.What is the objective function?
A)Max X
B)Min X
C)Max X
D)Min X
E)Max X + X
Q4) In a maximal flow problem,each node in the network is associated with a decision variable.
A)True B)False
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Chapter 6: Integer, Goal, and Nonlinear Programming Models
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55 Verified Questions
55 Flashcards
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Sample Questions
Q1) These are problems in which some,but not all,the decision variables must have integer solutions:
A)mixed IP problems
B)pure IP problems
C)pure binary problems
D)mixed binary IP problems
E)goal programming problems
Q2) The optimal solution of to an NLP model must be a corner point of the feasible region.
A)True
B)False
Q3) Consider the following constraint and its associated binary variables: XA + XB = 1. This constraint is an example of an if-then constraint.
A)True
B)False
Q4) The deviational variable d typically denotes underachievement.
A)True
B)False
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Chapter 7: Project Management
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) Refer to the figure.What is the slack time,in days,associated with activity D?
A)0
B)1
C)2
D)3
E)4
Q2) To find the expected activity time,t,the Beta distribution weighs a,m,and b equally.
A)True
B)False
Q3) In an Activity-On-Node (AON)network,arcs denote activities.
A)True
B)False
Q4) Refer to the figure.What is the probability of not completing the project within 18 days?
A)0.0668
B)0.4332
C)0.9332
D)0.4878
E)0.0122
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Chapter 8: Decision Analysis
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53 Verified Questions
53 Flashcards
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Sample Questions
Q1) Suppose that the utility function for a decision maker is represented as follows: U(x)= 2x.The potential payoffs that are possible are illustrated below.
Payoff (x)
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1000
Convert these payoffs into utility values using the above function.Plot the utility curve and determine whether the decision maker is a risk avoider,risk indifferent,or a risk seeker.
Q2) The maximin criterion is an optimistic approach to decision making.
A)True
B)False
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Chapter 9: Queuing Models
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47 Flashcards
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Sample Questions
Q1) Kendall's three-symbol notation is sometimes extended to include 5 symbols.
A)True
B)False
Q2) An M/M/s system implies there is a single number of servers.
A)True
B)False
Q3) A service system has a constant service time,Poisson arrival rates and 1 server.What is the Kendall notation for this system?
A)M/M/1
B)M/D/1
C)M/G/1
D)D/M/1
E)G/M/1
Q4) Refer to the table.What is the average number of customers in the queue plus the number being served?
A)0.70
B)2.33
C)1.63
D)0.23
E)0.33
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Chapter 10: Simulation Modeling
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Sample Questions
Q1) Refer to the information above.Suppose that the manager wishes to examine the effect of different reservation levels on average profitability.In specific,the manager wishes to consider reservation levels of 280,290,300,310,and 320.Use Crystal Ball's Decision Table to find the reservation level that maximizes average profitability.Use 1000 replications.
Q2) Joe Smith is a handyman who owns his own plumbing business.In a typical month,the number of service calls that he gets varies according to the following distribution:
\[\begin{array} { | l | c | c | c | c | c | }
\hline \text { Number of Calls } & 15 & 16 & 17 & 18 & 19 \\
\hline \text { Probability } & 0.3 & 0.3 & 0.2 & 0.1 & 0.1 \\
\hline
\end{array}\]
His revenues per service call are normally distributed with a mean of $100 and a standard deviation of $20.His monthly expenses can range between a minimum of $1000 and a maximum of $1500,where all values between the minimum and maximum occur with equal likelihood.
a.Use Crystal Ball to simulate Mr.Smith's monthly profits.Run 1000 replications of the model.
b.What is the average monthly profit?
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Chapter 11: Forecasting Models
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Sample Questions
Q1) Refer to the table above.Forecast next quarterly sales using a 3-period weighted moving average.Use Solver to determine the optimal weights that minimize MSE.
Q2) In an exponential smoothing forecast,the value of the smoothing constant alpha can range between -1 and +1.
A)True
B)False
Q3) Refer to the table above.
a.What is the linear trend equation that best fits the data?
b.What is the forecast of the number of immigrants in 2002 using the linear trend equation?
c.What is the MAPE for this method?
Q4) Removing the seasonal component from a data series (i.e. ,unseasonalization)can be accomplished by multiplying each data point by its appropriate seasonal index. A)True B)False
Q5) Refer to the table above.Use a linear trend equation to forecast next quarterly sales.
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13
Chapter 12: Inventory Control Models
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39 Flashcards
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Sample Questions
Q1) The C group items in ABC analysis require closer monitoring than the A group items.
A)True
B)False
Q2) Refer to the information above.What is the optimal EOQ?
A)200 bags
B)5000 bags
C)2500 bags
D)100 bags
E)50 bags
Q3) Spoilage is considered to be a part of carrying cost.
A)True
B)False
Q4) Safety stock is usually held only when demand is uncertain.
A)True
B)False
Q5) In the ABC analysis,the A group items are the least critical.
A)True
B)False
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