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Management Science test 2

Isak Reinhardsen 38 questions Updated 21 Mar 2018

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Questions in this quiz (38)

  1. 1
    The Deadbeats
    After months of broken promises, partial payments, and general stupidity, the landlord had no choice but to evict the long term tenants that had become little more than squatters in his first rental property. As he surveyed the damage and pondered a mix of repairs an upgrades, he scoured the latest statistics on what different upgrades might be worth in terms of increased rent. Beautifully refinished wood floors could increase the monthly rent about $100 and an upgrade to the kitchen would fetch $80 per month. The garage door needed replacement, but even though it would receive daily use, it was almost an order qualifier, and wouldn't net more than $20 per month. The house had always suffered from lack of a back door&8211;you had to access the backyard through the garage, so taking out a window and replacing it with a safety door would cost $250 and add only $15 to the monthly rent. The garage door would cost $350, the kitchen update would cost $1000 if he went with granite, and the floor refinish job would cost $400 to rent the buffer and buy the chemicals. It wouldn't be easy doing these upgrades; the garage door would take a half week, the back door one week, the floors two weeks and the tile three weeks.

    There was another way around these jobs though; instead of doing them himself, the landlord could always hire a professional in each field that could finish the job in half the time but would charge a pretty penny for that speed. Refinishing floors would cost $2700, upgrading the kitchen would cost $2500, replacing the back window with a door would cost $600, and installing a garage door opener would cost $350.


    Suppose the landlord really wants the back door to be installed. For too long he has had to cut through the garage and he figures when he retires, this house will be a perfect downsize home for him to move into. How should the constraint for the back door be written if he uses the following scheme for decision variables?
    Image for question 1
    1. Ax5 - x6 ≤ 1
    2. Bx5 + x6 = 1
    3. Cx5 + x6 ≤ 1
    4. Dx5 - x6 = 1
  2. 2In a ________ integer model, all decision variables have integer solution values.
    1. Atotal
    2. B0-1
    3. Cmixed
    4. DAll of these
  3. 3
    The Deadbeats
    After months of broken promises, partial payments, and general stupidity, the landlord had no choice but to evict the long term tenants that had become little more than squatters in his first rental property. As he surveyed the damage and pondered a mix of repairs an upgrades, he scoured the latest statistics on what different upgrades might be worth in terms of increased rent. Beautifully refinished wood floors could increase the monthly rent about $100 and an upgrade to the kitchen would fetch $80 per month. The garage door needed replacement, but even though it would receive daily use, it was almost an order qualifier, and wouldn't net more than $20 per month. The house had always suffered from lack of a back door&8211;you had to access the backyard through the garage, so taking out a window and replacing it with a safety door would cost $250 and add only $15 to the monthly rent. The garage door would cost $350, the kitchen update would cost $1000 if he went with granite, and the floor refinish job would cost $400 to rent the buffer and buy the chemicals. It wouldn't be easy doing these upgrades; the garage door would take a half week, the back door one week, the floors two weeks and the tile three weeks.

    There was another way around these jobs though; instead of doing them himself, the landlord could always hire a professional in each field that could finish the job in half the time but would charge a pretty penny for that speed. Refinishing floors would cost $2700, upgrading the kitchen would cost $2500, replacing the back window with a door would cost $600, and installing a garage door opener would cost $350.


    The landlord uses the following scheme for decision variables:

    What should the objective function be?
    Image for question 3
    1. AMin Z = 2700x1 + 400x2 + 2500x3 + 1000x4 + 600x5 + 250x6 + 350x7 + 400x8
    2. BMin Z = 2700x1 - 400x2 + 2500x3 - 1000x4 + 600x5 - 250x6 + 350x7 - 400x8
    3. CMax Z = 100x1 - 100x2 + 80x3 - 80x4 + 15x5 - 15x6 + 20x7 - 20x8
    4. DMax Z = 100x1 + 100x2 + 80x3 + 80x4 + 15x5 + 15x6 + 20x7 + 20x8
  4. 4Assume that we are using 0-1 integer programming model to solve a capital budgeting problem and xj = 1 if project j is selected and xj = 0, otherwise.

    The constraint (x1 + x2 + x3 + x4 = 2) means that ________ out of the ________ projects must be selected.
    1. Aexactly 2, 4
    2. Bexactly 1, 2
    3. Cat least 2, 4
    4. Dat most 1, 2
  5. 5
    The Deadbeats
    After months of broken promises, partial payments, and general stupidity, the landlord had no choice but to evict the long term tenants that had become little more than squatters in his first rental property. As he surveyed the damage and pondered a mix of repairs an upgrades, he scoured the latest statistics on what different upgrades might be worth in terms of increased rent. Beautifully refinished wood floors could increase the monthly rent about $100 and an upgrade to the kitchen would fetch $80 per month. The garage door needed replacement, but even though it would receive daily use, it was almost an order qualifier, and wouldn't net more than $20 per month. The house had always suffered from lack of a back door&8211;you had to access the backyard through the garage, so taking out a window and replacing it with a safety door would cost $250 and add only $15 to the monthly rent. The garage door would cost $350, the kitchen update would cost $1000 if he went with granite, and the floor refinish job would cost $400 to rent the buffer and buy the chemicals. It wouldn't be easy doing these upgrades; the garage door would take a half week, the back door one week, the floors two weeks and the tile three weeks.

    There was another way around these jobs though; instead of doing them himself, the landlord could always hire a professional in each field that could finish the job in half the time but would charge a pretty penny for that speed. Refinishing floors would cost $2700, upgrading the kitchen would cost $2500, replacing the back window with a door would cost $600, and installing a garage door opener would cost $350.


    The landlord uses the following scheme for decision variables:

    Which of these constraints would not be appropriate for this scenario?
    Image for question 5
    1. A1x1 + 2x2 + 1.5x3 + 3x4 + 0.5x5 + 1x6 + 0.25x7 + 0.5x8 ≤ 4
    2. B2700x1 + 400x2 + 2500x3 + 1000x4 + 600x5 + 250x6 + 350x7 + 400x8 ≤ 3000
    3. Cx1, x2, x3, x4, x5, x6 , x7, x8 ≥ 0 and integer
    4. Dx3 + x4 = 1
  6. 6Due to increased sales, a company is considering building three new distribution centers (DCs) to serve four regional sales areas. The annual cost to operate DC 1 is $500 (in thousands of dollars). The cost to operate DC 2 is $600 (in thousands of dollars). The cost to operate DC 3 is $525 (in thousands of dollars). Assume that the variable cost of operating at each location is the same, and therefore not a consideration in making the location decision.

    The table below shows the cost ($ per item) for shipping from each DC to each region.


    The demand for region A is 70,000 units; for region B, 100,000 units; for region C, 50,000 units; and for region D, 80,000 units. Assume that the minimum capacity for the distribution center will be 500,000 units.

    Assume that Xij = quantity shipped from distribution i to region j. i = 1,2,3 and j = 1, 2, 3, 4.
    Assume that Yi = 0 or 1 where i = distribution center 1, 2 or 3.
    Image for question 6
    1. AX11 + X12 + X13 + X14 ≥ 500.
    2. BX11 + X12 + X13 + X14D + 500y1 ≤ 0.
    3. CX11 + X12 + X13 + X14 ≤ 500.
    4. DX11 + X12 + X13 + X14 - 500y1 ≤ 0.
  7. 7The Deadbeats
    After months of broken promises, partial payments, and general stupidity, the landlord had no choice but to evict the long term tenants that had become little more than squatters in his first rental property. As he surveyed the damage and pondered a mix of repairs an upgrades, he scoured the latest statistics on what different upgrades might be worth in terms of increased rent. Beautifully refinished wood floors could increase the monthly rent about $100 and an upgrade to the kitchen would fetch $80 per month. The garage door needed replacement, but even though it would receive daily use, it was almost an order qualifier, and wouldn't net more than $20 per month. The house had always suffered from lack of a back door&8211;you had to access the backyard through the garage, so taking out a window and replacing it with a safety door would cost $250 and add only $15 to the monthly rent. The garage door would cost $350, the kitchen update would cost $1000 if he went with granite, and the floor refinish job would cost $400 to rent the buffer and buy the chemicals. It wouldn't be easy doing these upgrades; the garage door would take a half week, the back door one week, the floors two weeks and the tile three weeks.

    There was another way around these jobs though; instead of doing them himself, the landlord could always hire a professional in each field that could finish the job in half the time but would charge a pretty penny for that speed. Refinishing floors would cost $2700, upgrading the kitchen would cost $2500, replacing the back window with a door would cost $600, and installing a garage door opener would cost $350.


    The landlord ran the model in Excel and received the answer report contained in the table. Which of the following statements is correct?
    Image for question 7
    1. AThe rent will be $195 higher and the project will take 3.5 weeks to finish at a cost of $3700.
    2. BThe rent will be $180 higher and the project will take 2.5 weeks to finish at a cost of $3700.
    3. CThe rent will be $195 higher and the project will take 2.5 weeks to finish at a cost of $2900.
    4. DThe rent will be $180 higher and the project will take 3.5 weeks to finish at a cost of $2900.
  8. 8
    The Deadbeats
    After months of broken promises, partial payments, and general stupidity, the landlord had no choice but to evict the long term tenants that had become little more than squatters in his first rental property. As he surveyed the damage and pondered a mix of repairs an upgrades, he scoured the latest statistics on what different upgrades might be worth in terms of increased rent. Beautifully refinished wood floors could increase the monthly rent about $100 and an upgrade to the kitchen would fetch $80 per month. The garage door needed replacement, but even though it would receive daily use, it was almost an order qualifier, and wouldn't net more than $20 per month. The house had always suffered from lack of a back door&8211;you had to access the backyard through the garage, so taking out a window and replacing it with a safety door would cost $250 and add only $15 to the monthly rent. The garage door would cost $350, the kitchen update would cost $1000 if he went with granite, and the floor refinish job would cost $400 to rent the buffer and buy the chemicals. It wouldn't be easy doing these upgrades; the garage door would take a half week, the back door one week, the floors two weeks and the tile three weeks.

    There was another way around these jobs though; instead of doing them himself, the landlord could always hire a professional in each field that could finish the job in half the time but would charge a pretty penny for that speed. Refinishing floors would cost $2700, upgrading the kitchen would cost $2500, replacing the back window with a door would cost $600, and installing a garage door opener would cost $350.


    Obviously if the model wants to upgrade the kitchen, it should be done by either the landlord or a subcontractor. As he creates the IP model, the landlord wants to leave the choice of whether to actually upgrade the kitchen up to the optimization algorithm. How should this constraint be written if he uses the following scheme for decision variables?
    Image for question 8
    1. Ax3 + x4 ≤ 1
    2. Bx3 + x4 = 1
    3. Cx3 - x4 = 1
    4. Dx3 - x4 ≤ 1
  9. 9If the solution values of a linear program are rounded in order to obtain an integer solution, the solution is:
    1. Aalways feasible.
    2. Balways optimal and feasible.
    3. Csometimes optimal and feasible.
    4. Dnever optimal and feasible.
  10. 10Binary variables are:
    1. Aany integer value.
    2. Bany negative integer value.
    3. Cany continuous value.
    4. D0 or 1 only.

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Description
Quiz on Management Science test 2, created by Isak Reinhardsen on 18/03/2018.
Language
English
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Created on 18 Mar 2018 · updated on 21 Mar 2018
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