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Operations Management Quiz 8

Posted on Posted in MSC 337 Operations Management
Course Operations Management-16SP
Test Quiz 8
Started 4/9/16 10:44 PM
Submitted 4/9/16 11:44 PM
Status Completed
   
Time Elapsed 1 hour, 0 minute.
Instructions
  • Question 1

0 out of 5 points

Which of the following is considered a decision variable in the media selection problem of maximizing audience exposure?

Answer
Selected Answer:  

what types of ads to offer
Correct Answer:  

the number of ads of each type
  • Question 2

5 out of 5 points

A employee produces 15 parts during a shift in which he made $90. What is the labor content of the product?

Answer
Selected Answer:  

$6
Correct Answer:  

$6
  • Question 3

5 out of 5 points

The transportation model, when applied to location analysis:

Answer
Selected Answer:  

minimizes total production and transportation costs.
Correct Answer:  

minimizes total production and transportation costs.
  • Question 4

5 out of 5 points

The reason fast food restaurants often are found in close proximity to each other is:

Answer
Selected Answer:  

location clustering near high traffic flows.
Correct Answer:  

location clustering near high traffic flows.
  • Question 5

5 out of 5 points

Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor?

Answer
Selected Answer:  

Few people will travel out-of state for a haircut.
Correct Answer:  

Few people will travel out-of state for a haircut.
  • Question 6

0 out of 5 points

Linear programming is usually used by managers involved in portfolio selection to

Answer
Selected Answer:  

maximize investment limitations.
Correct Answer:  

maximize return on investment.
  • Question 7

0 out of 5 points

Intangible costs include which of the following?

Answer
Selected Answer:  

None of these
Correct Answer:  

All of these
  • Question 8

5 out of 5 points

Which of the following statements regarding FedEx is TRUE?

Answer
Selected Answer:  

FedEx believes the hub system helps reduce mishandling and delays due to better controls.
Correct Answer:  

FedEx believes the hub system helps reduce mishandling and delays due to better controls.
  • Question 9

0 out of 5 points

What is the objective in the truck loading problem?

Answer
Selected Answer:  

minimize the weight of the load shipped
Correct Answer:  

maximize the value of the load shipped
  • Question 10

5 out of 5 points

Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon?

Answer
Selected Answer:  

political risk
Correct Answer:  

political risk
  • Question 11

0 out of 5 points

Table 8-5

Each coffee table produced by Timothy Kent Designers nets the firm a profit of $9. Each bookcase yields a $12 profit. Kent’s firm is small and its resources limited. During any given production period (of 1 week), 10 gallons of varnish and 12 lengths of high quality redwood are available. Each coffee table requires approximately 1 gallon of varnish and 1 length of redwood. Each bookcase takes 1 gallon of varnish and 2 lengths of wood.

Referring to Table 8-5, the solution to the problem is

Answer
Selected Answer:  

None of these
Correct Answer:  

T = 8, B = 2.
  • Question 12

0 out of 5 points

Table 8-3

A marketing research firm would like to survey undergraduate and graduate college students about whether or not they take out student loans for their education. There are different cost implications for the region of the country where the college is located and the type of degree. The survey cost table is provided below:

The requirements for the survey are as follows:
1. The survey must have at least 1500 students
2. At least 400 graduate students
3. At least 100 graduate students should be from the West
4. No more than 500 undergraduate students should be from the East
5. At least 75 graduate students should be from the Central region
6. At least 300 students should be from the West

The marketing research firm would like to minimize the cost of the survey while meeting the requirements. Let X1 = # of undergraduate students from the East region, X2 = # of graduate students from the East region, X3 = # of undergraduate students from the Central region, X4 = # of graduate students from the Central region, X5 = # of undergraduate students from the West region, and X6 = # of graduate students from the West region.

According to Table 8-3, what is the objective function?

Answer
Selected Answer:  

Maximize 10X1 + 15X2 + 12X3 + 18X4 + 15X5 + 21X6
Correct Answer:  

Minimize 10X1 + 15X2 + 12X3 + 18X4 + 15X5 + 21X6
  • Question 13

5 out of 5 points

The center-of-gravity method is used primarily to determine what type of locations?

Answer
Selected Answer:  

distribution center locations
Correct Answer:  

distribution center locations
  • Question 14

5 out of 5 points

A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites.

The score for Gary Mall is ________ and the score for Belt Line is ________.

Answer
Selected Answer:  

34; 28
Correct Answer:  

34; 28
  • Question 15

0 out of 5 points

Table 8-6

The following is a linear programming formulation of a labor planning problem. There are four overlapping shifts, and management must decide how many employees to schedule to start work on each shift. The objective is to minimize the total number of employees required while the constraints stipulate how many employees are required at each time of day. The variables X1 – X4 represent the number of employees starting work on each shift (shift 1 through shift 4).

According to Table 8-6, which describes a labor planning problem and its solution, how many workers would be assigned to shift 2?

Answer
Selected Answer:  

14
Correct Answer:  

2
  • Question 16

0 out of 5 points

Table 8-7

Ivana Myrocle wishes to invest her inheritance of $200,000 so that her return on investment is maximized, but she also wishes to keep her risk level relatively low. She has decided to invest her money in any of three possible ways: CDs, which pay a guaranteed 6 percent; stocks, which have an expected return of 13 percent; and a money market mutual fund, which is expected to return 8 percent. She has decided that any or all of the $200,000 may be invested, but any part (or all) of it may be put in any of the 3 alternatives. Thus, she may have some money invested in all three alternatives. In formulating this as a linear programming problem, define the variables as follows:

According to Table 8-7, which describes an investment problem, suppose that Ivana has assigned the following risk factors to each investment instrument  CDs (C): 1.2; stocks (S): 4.8; money market mutual fund (M): 3.2. If Ivana decides that she wants the risk factor for the whole investment to be less than 3.3, how should the necessary constraint be written?

Answer
Selected Answer:  

(1.2C + 4.8S + 3.2M)/3  3.3
Correct Answer:  

1.2C + 4.8S + 3.2M  3.3(C + S + M)
  • Question 17

5 out of 5 points

Table 8-4

A small furniture manufacturer produces tables and chairs. Each product must go through three stages of the manufacturing process: assembly, finishing, and inspection. Each table requires 4 hours of assembly, 3 hours of finishing, and 1 hour of inspection. Each chair requires 3 hours of assembly, 2 hours of finishing, and 2 hours of inspection. The selling price per table is $140 while the selling price per chair is $90. Currently, each week there are 220 hours of assembly time available, 160 hours of finishing time, and 45 hours of inspection time. Assume that one hour of assembly time costs $5.00; one hour of finishing time costs $6.00; one hour of inspection time costs $4.50; and that whatever labor hours are not required for the table and chairs can be applied to another product. Linear programming is to be used to develop a production schedule. Define the variables as follows:

According to Table 8-4, which describes a production problem, suppose it was decided that all the labor hour costs have to be covered through the sale of the tables and chairs, regardless of whether or not all the labor hours are actually used. How would the objective function be written?

Answer
Selected Answer:  

maximize 140T + 90C
Correct Answer:  

maximize 140T + 90C
  • Question 18

0 out of 5 points

Table 8-5

Each coffee table produced by Timothy Kent Designers nets the firm a profit of $9. Each bookcase yields a $12 profit. Kent’s firm is small and its resources limited. During any given production period (of 1 week), 10 gallons of varnish and 12 lengths of high quality redwood are available. Each coffee table requires approximately 1 gallon of varnish and 1 length of redwood. Each bookcase takes 1 gallon of varnish and 2 lengths of wood.

Referring to Table 8-5, which of the following constraints would be used?

Answer
Selected Answer:  

maximize 9T + 12B
Correct Answer:  

None of these
  • Question 19

5 out of 5 points

On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which:

Answer
Selected Answer:  

total costs are equal for two alternative locations.
Correct Answer:  

total costs are equal for two alternative locations.
  • Question 20

5 out of 5 points

Media selection problems are typically approached with LP by either

Answer
Selected Answer:  

maximizing audience exposure or minimizing advertising costs.
Correct Answer:  

maximizing audience exposure or minimizing advertising costs.

.

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