OPERATIONS RESEARCH SAMPLE MULTIPLE CHOICE QUESTIONS:-

1) The purpose of the transportation approach for locational analysis is to minimize

a) total costs
b) total shipping costs
c) total variable costs
d) total fixed costs
e) the number of shipments
Answer : B) Total Shipping Costs

2) Which of the following statements about the northwest corner rule is false?
a) One must exhaust the supply for each row before moving down to the next row
b) One must exhaust the demand requirements of each column before moving to the next column
c) When moving to a new row or column, one must select the cell with the lowest cost
d) One must check that all supply and demand constraints are met
e) All of the above are false
Answer : C) When moving to a new or column, one must select the cell with the lowest cost

3) In transportation model analysis the stepping-stone method is used to

a) obtain an initial optimum solution
b) obtain an initial feasible solution
c) evaluate empty cells for potential solution improvements
d) evaluate empty cells for possible degeneracy
e) balance supply and demand
Answer : C) evaluate empty cells for potential solution improvements

4) A transportation problem has a feasible solution when

a) all of the improvement indexes are positive
b) the number of filled cells is one less than the number of rows plus the number of columns
c) the solution yields the lowest possible cost
d) all demand and supply constraints are satisfied
Answer : All demand and supply constraints are satisfied

5) When the number of shipments in a feasible solution is less than the number of rows plus the
number of columns minus one
a) the solution is optimal
b) there is degeneracy, and an artificial allocation must be created
c) a dummy source must be created
d) a dummy destination must be created
e) the closed path has a triangular shape
Answer :there is degeneracy, and artificial allocation must be created

6) The total cost of the optimal solution to a transportation problem

a) is calculated by multiplying the total supply (including any dummy values) by the average cost of the
cells
b) cannot be calculated from the information given
c) can be calculated from the original non-optimal cost, by adding the savings made at each
improvement
d) is found by multiplying the amounts in each cell by the cost for that cell for each row and then
subtract the products of the amounts in each cell times the cost of each cell for the columns
e) can be calculated based only on the entries in the filled cells of the solution
Answer : e. can be calculated based only on the entries in the filled cells of the solution

7) The stepping-stone method

a) is an alternative to using the northwest corner rule
b) often involves tracing closed paths with a triangular shape
c) is used to evaluate the cost effectiveness of shipping goods via transportation routes not currently in
the solution
d) is used to identify the relevant costs in a transportation problem
e) helps determine whether a solution is feasible or not
Answer : is used to evaluate the cost effectiveness of shipping goods via transportation routes not
currently in the solution

8) In a minimization problem, a negative improvement index in a cell indicates that the

a) solution is optimal
b) total cost will increase if units are reallocated to that cell
c) total cost will decrease if units are reallocated to that cell
d) current iteration is worse than the previous one
e) problem has no feasible solution
Answer : total cost will decrease if units reallocated to that cell

9) In a minimization problem, a positive improvement index in a cell indicates that

a) the solution is optimal
b) the total cost will increase if units are reallocated to that cell
c) the total cost will decrease if units are reallocated to that cell
d) there is degeneracy
e) the problem has no feasible solution
Answer : the total cost will increase if units are reallocated to that cell

10) Which of the following would not generally be a motive for a firm to hold inventories? To
a) take advantage of quantity discounts
b) minimize holding costs
c)reduce stockout risks
d) decouple production from distribution
e) meet anticipated demand
Answer : minimize holdings cost

11) Which of the following statements about ABC analysis is false?

a) ABC analysis is based on the presumption that controlling the few most important items produces
the vast majority of inventory savings)
b) In ABC analysis, "A" Items are tightly controlled, have accurate records, and receive regular review
by major decision makers)
c) ABC analysis is based on the presumption that all items must be tightly controlled to produce
important cost savings)
d) In ABC analysis, "C" Items have minimal records, periodic review, and simple controls
e) None of the above statements are true)
Answer : ABC analysis is based on the presumption that all items must be tightly controlled to produce
important cost savings)

12) ABC analysis divides on-hand inventory into three classes, generally based upon
a) unit price
b) the number of units on hand
c) annual demand
d) annual dollar volume
e) item quality
Answer : annual dollar volume

13) Among the advantages of cycle counting is that itmakes the annual physical inventory more
acceptable to management
a) allows more rapid identification of errors and consequent remedial action than is possible with annual
physical inventory
b) does not require the detailed inventory records necessary when annual physical inventory is used
c) does not require highly trained people
d) does not need to be performed for less expensive items
Answer : allows more rapid identification of errors and consequent remedial action than is possible with
annual physical inventory

14)The two most basic inventory questions answered by the typical inventory model are
a) timing and cost of orders
b) quantity and cost of orders
c) timing and quantity of orders
d) order quantity and service level
e) ordering cost and carrying cost
Answer : timing and quantity of orders

15) An inventory decision rule states that "when the inventory level goes down to 14 gearboxes, 100
gearboxes will be ordered)" Which of the following statements is true?
a) 100 is the reorder point, and 14 is the order quantity)
b) The number 100 is a function of demand during lead time)
c) 14 is the safety stock, and 100 is the reorder point)
d) 14 is the reorder point, and 100 is the order quantity)
Answer : 14 is the reorder point and 100 is the order quantity

16) The Production Order Quantity model

a) relaxes the assumption of known and constant demand
b) uses Ordering Cost, not Setup Cost, in its formula
c) assumes instantaneous delivery
d) results in larger average inventory than an equivalent EOQ model
e) is appropriate when units are sold/used as they are produced
Answer : is appropriate when units are sold / used as they are produced

17)) Which of the following statements regarding the Production Order Quantity model is true?
a) It applies only to items produced in the firm's own production departments)
b) It relaxes the assumption that the demand rate is constant)
c) It minimizes the total production costs)
d) It relaxes the assumption that all the order quantity is received at one time)
e) It minimizes inventory)
Answer : It relaxed the assumption that all the order quantity is received at one time

18) Which of the following statements about quantity discounts is false?

a) The cost-minimizing solution may, or may not, be where annual holding costs equal annual ordering
costs)
b) In inventory management, item cost becomes relevant to inventory decisions only when a quantity
discount is available)
c) The larger annual demand, the less attractive a discount schedule will be)
Answer : the larger annual demand, the less attractive a discount schedule will be)

19) A good layout requires determining

a) capacity and space requirements
b) material handling requirements
c) environment and aesthetics
d) flows of information
e) Structure
Answer : e) Structure

20) For which of the following operations would a fixed-position layout be most appropriate?
a) assembly of an automobile
b) production of cameras and TV sets
c) construction of a ship
d) refining of crude oil
e) grocery store

21) The type of layout which features departments or other functional groupings in which similar
activities are performed is
a) process
b) product
c) fixed-position
d) mass
e) unit

22) According to Heizer and Render, an office layout

a) groups workers, their equipment, and spaces/offices to provide for movement of information
b) addresses the layout requirements of large, bulky projects such as ships and buildings
c) seeks the best personnel and machine utilization in repetitive or continuous production
d) allocates shelf space and responds to customer behavior
e) deals with low-volume, high-variety production
Answer : group workers, their equipment, and spaces/ offices to provide for movement of information

23) According to Heizer and Render, a retail/service layout

a) groups workers, their equipment, and spaces/offices to provide for movement of information
b) addresses the layout requirements of large, bulky projects such as ships and buildings
c) seeks the best personnel and machine utilization in repetitive or continuous production
d) allocates space and responds to customer behavior
e) deals with low-volume, high-variety production
Answer : d)allocates space and responds to customer behavior

24) Balancing low-cost storage with low-cost material handling is important in

a) a fixed-position layout
b) a process-oriented layout
c) an office layout
d) a product-oriented layout
e) a warehouse layout
Answer : e)a warehouse layout

25) which type of layout is used to achieve a smooth and rapid flow of large volumes of output?
a) process
b) batch
c) product
d) unit
e) fixed-position
Answer : b)batch

26 ) Which of the following are strongly associated with "crossdocking"?

a) non-value-adding activities such as receiving and storing
b) multi-modal transportation facilities at seaports
c) processing items as soon as they are received into a distribution center
d) use of manual product identification systems
Answer : c)processing items as soon as they are received into a distribution center

27) What is the difference between minimal cost network flows and transportation problems?
a) The minimal cost network flows are special cases of transportation problems
b) The transportation problems are special cases of the minimal cost network flows
c) There is no difference
d) The transportation problems are formulated in terms of tableaus, while the minimal cost network
flows are formulated in terms of graphs
Answer : b)The transportation problems are special cases of the minimal cost network flows
28) With the transportation technique, the initial solution can be generated in any fashion one chooses)
The only restriction is that
a) the edge constraints for supply and demand are satisfied)
b) the solution is not degenerate)
c) the solution must be optimal)
d) one must use the northwest-corner method)
Answer : a) the edge constraints for supply and demand are satisfied)

29 ) The purpose of the stepping-stone method is to

a) develop the initial solution to the transportation problem)
b) assist one in moving from an initial feasible solution to the optimal solution)
c) determine whether a given solution is feasible or not)
d) identify the relevant costs in a transportation problem)
Answer : b. assist one in moving from an initial feasible solution to the optimal solution

30) The purpose of a dummy source or dummy destination in a transportation problem is to

a) prevent the solution from becoming degenerate)
b) obtain a balance between total supply and total demand)
c) make certain that the total cost does not exceed some specified figure)
d) provide a means of representing a dummy problem)
Answer : obtain a balance between total supply and total demand)

31) Which of the following is NOT needed to use the transportation model?
a) the cost of shipping one unit from each origin to each destination
b) the destination points and the demand per period at each
c) the origin points and the capacity or supply per period at each
d) degeneracy
Answer : d. degeneracy

32) Which of the following is a method for improving an initial solution in a transportation problem?
a) northwest-corner
b) intuitive lowest-cost
c) southeast-corner rule
d) stepping-stone
Answer : d. Stepping – stone

33) The transportation method assumes that

a) there are no economies of scale if large quantities are shipped from one source to one destination)
b) the number of occupied squares in any solution must be equal to the number of rows in the table
plus the number of columns in the table plus 1)
c) there is only one optimal solution for each problem)
d) the number of dummy sources equals the number of dummy destinations)
Answer : a)there are no economies of scale if large quantities are shipped from one source to one
destination)

34) Which of these statements about the stepping-stone method is best?

a) A dummy source and destination must be added if the number of rows plus columns minus 1 is not
equal to the number of filled squares)
b) Only squares containing assigned shipments can be used to trace a path back to an empty square)
c) An improvement index that is a net positive means that the initial solution can be improved)
d) Only empty squares can be used to trace a path back to a square containing an assigned shipment
Answer : b)Only squares containing assigned shipments can be used to trace a path back to an empty
square)

35) The net cost of shipping one unit on a route not used in the current transportation problem solution
is called the ?
a) change index
b) new index
c) MODI index
d) idle index
e) Improvement index
Answer : e)Improvement index

36) The procedure used to solve assignment problems wherein one reduces the original assignment
costs to a table of opportunity costs is called )
a) stepping-stone method
b) matrix reduction
c) MODI method
d) northwest reduction
e) simplex reduction
answer : b) Matrix reduction

37) The method of finding an initial solution based upon opportunity costs is called
a) the northwest corner rule
b) Vogel's approximation
c) Johanson's theorem
d) Flood's technique
Answer : b) vogels approximation

38) An assignment problem can be viewed as a special case of transportation problem in which the
capacity from each source is and the demand at each destination is
A) 1; 1
B) Infinity; infinity
C) 0; 0
D) 1000; 1000
E) -1; -1
Answer : a. 1;1
39) occurs when the number of occupied squares is less than the number of rows plus
a) Degeneracy
b) Infeasibility
c) Unboundedness
d) Unbalance
e) Redundancy
Answer : degenracy

40) Both transportation and assignment problems are members of a category of LP problems called )
a) shipping problems
b) logistics problems
c)generalized flow problems
d) routing problems
answer : b. logistics problems

41) The equation Ri + Kj = Cij is used to calculate an improvement index for the stepping-stone method
a) the opportunity costs for using a particular route
b) the MODI cost values (Ri, Kj)
c) the degeneracy index
d) optimality test
answer : b. the MODI cost values (Ri, Kj)

42) In case of an unbalanced problem, shipping cost coefficients of are assigned to each created
dummy factory or warehouse)
a) very high positive costs
b) very high negative costs
c) 10
d) zero
e) one
answer: d. Zero

43) The initial solution of a transportation problem can be obtained by applying any known method)
However, the only condition is that
a) The solution be optimal
b) The rim conditions are satisfied
c) The solution not be degenerate
d) All of the above
Answer : b. the rim conditions are satisfied

44) The dummy source or destination in a transportation problem is added to

a) Satisfy rim conditions
b) Prevent solution from becoming degenerate
c) Ensure that total cost does not exceed a limit
d) None of the above
Answer : a. satisfy rim conditions
45) The occurrence of degeneracy while solving a transportation problem means that
a) Total supply equals total demand
b) The solution so obtained is not feasible
c) The few allocations become negative
d) None of the above
Answer : the solution so obtained is not feasible

46) An alternative optimal solution to a minimization transportation problem exists whenever opportunity
cost corresponding to unused route of transportation is:
a) Positive & greater than zero
b) Positive with at least one equal to zero
c) Negative with at least one equal to zero
d) None of the above
Answer : positive with at least one equal to zero

47) One disadvantage of using North-West Corner rule to find initial solution to the transportation
problem is that
a) It is complicated to use
b) It does not take into account cost of transportation
c) It leads to a degenerate initial solution
d) All of the above
Answer : it does not take into account cost of transportation

48) The solution to a transportation problem with ‘m’ rows (supplies) & ‘n’ columns (destination) is
feasible if number of positive allocations are
a) m+n
b) m*n
c) m+n-1
d) m+n+1
answer : m+n-1

49) If an opportunity cost value is used for an unused cell to test optimality, it should be
a) Equal to zero
b) Most negative number
c) Most positive number
d) Any value
Answer : most negative

50) During an iteration while moving from one solution to the next, degeneracy may occur when
a) The closed path indicates a diagonal move
b) Two or more occupied cells are on the closed path but neither of them represents a corner of the
path)
c) Two or more occupied cells on the closed path with minus sign are tied for lowest circled value
d) Either of the above
Answer : two or more occupied cells on the closed paths with minus sign are tied for lowest circled
value
51) The large negative opportunity cost value in an unused cell in a transportation table is chosen to
improve the current solution because
a) It represents per unit cost reduction
b) It represents per unit cost improvement
c) It ensure no rim requirement violation
d) None of the above
Answer : it represents per unit cost reduction

52) The smallest quantity is chosen at the corners of the closed path with negative sign to be assigned
at unused cell because
a) It improve the total cost
b) It does not disturb rim conditions
c) It ensure feasible solution
Answer : it ensure feasible solutions

53) When total supply is equal to total demand in a transportation problem, the problem is said to be
a) Balanced
b) Unbalanced
c) Degenerate
d) None of the above
Answer : balanced

54) Which of the following methods is used to verify the optimality of the current solution of the
transportation problem
a) Least cost method
b) Vogel’s approximation method
c) Modified distribution method
Answer : Modified distribution method

55) The degeneracy in the transportation problem indicates that

a) Dummy allocation(s) needs to be added
b) The problem has no feasible solution
c) The multiple optimal solution exist
d) a & b but not c
Answer : The multiply optimal solution exist

56) In a transportation problem, when the number of occupied routes is less than the number of rows
plus the number of columns -1, we say that the solution is:
a) Unbalanced)
b) Infeasible)
c) Optimal)
d) impossible
e) Degenerate
Answer : degenerate)
57) The only restriction we place on the initial solution of a transportation problem is that: we must have
nonzero quantities in a majority of the boxes
a) all constraints must be satisfied
b) demand must equal supply
c) we must have a number (equal to the number of rows plus the number of columns minus one) of
boxes which contain nonzero quantities)
d) None of the above
Answer : all constraints must be satisfied

58) The initial solution of a transportation problem can be obtained by applying any known method)
However, the only condition is that
a) the solution be optimal
b) the rim condition are satisfied
c) the solution not be degenerate
d) all of the above
answer : the solution be optimal

59) The dummy source or destination in a transportation problem is added to

a) satisfy rim condition
b) prevent solution from becoming degenerate
c) ensure that total cost does not exceed a limit
d) all of the above
Answer : satisfy rim consition

60) The occurrence of degeneracy while solving a transportation problem means that
a)total supply equals total demand
b) the solution so obtained is not feasible
c) the few allocations become negative
d) none of the above
answer : the solution so be obtained is not feasible

61) An alternative optimal solution to a minimization transportation problem exists whenever opportunity
cost corresponding to unused routes of transportation is:
a) positive and greater than zero
b) positive with at least one equal to zero
c) negative with at least one equal to zero
Answer : positive with at least one equal to zero

62) One disadvantage of using North-West Corner Rule to find initial solution to the transportation
problem is that
a) it is complicated to use
b) it does not take into account cost of transportation
c) it leads to degenerate initial solution
Answer : it does not take into account cost of transportation
 63) In a transportation problem, we must make the number of __________ and __________ equal)
a) Destinations; sources
b) Units supplied; units demanded
c) Dummy rows; dummy columns
d) Large cost coefficients; small cost coefficients
e) Artificial cells; degenerate cells
Answer : Units supplied ; units demanded

64) The net cost of shipping one unit on a route not used in the current transportation problem solution
is called the __________)
a) change index
b) new index
c) MODI index
d) idle index
e) Improvement index
Answer : improvement index

65) __________ occurs when the number of occupied squares is less than the number of rows plus the
number of columns minus one)
a) Degeneracy
b) Infeasibility
c) Unboundedness
d) Unbalance
Answer : degeneracy

66) The longest path in the network diagram is called path.

(a) best
(b) worst
(c) sub-critical
(d) Critical
Answer: Critical

67) Floats for critical activities will be always . (April 19)

(e) one
(f) zero
(g) highest
(h) same as duration of the activity
Answer: zero
68) The time required by each job on each machine is called time.
(a) elapsed
(b) idle
(c) processing
(d) average
Answer: Processing
69) The participants in a game are called .

a) clients
b) members
c) customers
d) players
Answer: Players

70) A situation in a game where, in the payoff matrix, maximin of row is equal to minimax of column is
called .
e) centre point
f) main point
g) saddle point
h) equal point
Answer: saddle point

71) The order in which machines are required for completing the jobs is called
.

(e) machines order

(f) working order
(g) processing order
(h) job order
Answer: machines order

72) The total time required to complete all the jobs in a job sequencing problem is known as .
(i) idle time
(j) processing time
(k) elapsed time
(l) processing order
Answer: elapsed time

73) The outcome of the interaction of selected strategies of opponents in a game is called .
i) income
j) profit
k) payoff
l) Gains
Answer: payoff

74) The maximum time in which an activity will be completed assuming all possible delays and
postponements is termed as .
(a) optimistic time
(b) most likely time
(c) pessimistic time
 (d) expected time
Answer: pessimistic time

75) In PERT, the expected project completion time is also called as project completion
time.
(a) average
(b) normal
(c) mean
(d) Critical
Answer: mean

(76) Operations Research Models in which values of all variables and all possible outcomes are
known with certainty are called _______________models.
(a) Physical
(b) Symbolic
(c) Deterministic
(d) Probabilistic
Ans.: (1 – Deterministic

(77) Operations Research Models in which some or all variables are random in nature are called
____________models.
(a) Physical
(b) Symbolic
(c) Deterministic
(d) Probabilistic
Answer: (Probabilistic)

(78) Mean, median and mode are measures of ______________.

(a) Central tendency
(b) Dispersion
(c) Probability
Answer: (Central tendency)

(79) ____________ and ______________ are techniques applied in project management.

(a) CPM and PERT
(b) Assignment and Transportation
(c) Decision theory and Inventory models
Answer: (CPM, PERT);

(80) Operations Research techniques are _____________in nature.

(a) Qualitative
(b) Judgemental
 (c) Approximate
(d) Quantitative
Answer: Quantitative)

81) ______________ are the entities whose values are to be determined from the solution of the
LPP.

a) Objective function
b) Decision Variables
c) Constraints
d) Opportunity costs
Answer: (Decision variables)

82) ________________ specifies the objective or goal of solving the LPP.

a) Objective function
b) Decision Variables
c) Constraints
d) Opportunity costs
Answer: Objective function

83) Objective function is expressed in terms of the .

a) Numbers
b) Symbols
c) Decision Variables
Answer: decision variables

84) ________ are the restrictions or limitations imposed on the LPP.

a) Variables
b) Costs
c) Profits
d) Constraints
Answer: Constraints)

85) The type of constraint which specifies maximum capacity of a resource is ‘_____________ or equal
to’ constraint.

a) Less than
b) Greater than
c) Less than or greater than
Answer: less than

86) In linear programming _______________represents mathematical equation of the limitations

imposed by the problem. (April 19)

a) Objective function
b) Decision variable
c) Redundancy
d) Constraints
Answer: Constraints

87) The region of feasible solution in LPP graphical method is called____________.

(a) Infeasible region
(b) Unbounded region
(c) Infinite region
(d) Feasible region
Answer: Feasible region

88) When it is not possible to find solution in LPP, it is called as case of__________________
(a) Unknown solution
(b) Unbounded solution
(c) Infeasible solution
(d) Improper solution
Answer: Infeasible solution

89) When the feasible region is such that the value of objective function can extend to infinity, it is
called a case of ______________.
(a) Infeasible solution
(b) Alternate optimal
(c) Unbounded solution
(d) Unique solution
Answer: Unbounded solution

90) When the constraints are a mix of ‘less than’ and ‘greater than’ it is a problem having
______________.
(a) Multiple constraints
(b) Infinite constraints
(c) Infeasible constraints
(d) Mixed constraints
Answer: Mixed constraints

91) In case of an ‘ __________ ’ constraint, the feasible region is a straight line.

(a) less than or equal to
(b) greater than or equal to
(c) mixed
(d) equal to
Answer: equal to

92) In linear programming, unbounded solution means ___________ . (April 19)

(a) Infeasible solution
(b) Degenerate solution
(c) Infinite solutions
(d) Unique solution
Answer: Infinite solutions
93) The second longest path in the network diagram is called path.
(a) alternate
(b) feasible
(c) sub-critical
(d) critical

Answer: sub-critical

94) The shortest possible completion time of an activity in PERT is called

time.

(a) pessimistic
(b) optimistic
(c) most likely
(d) Expected
Answer: optimistic

95) The order in which machines are required for completing the jobs is called
.

(a) machines order

(b) working order
(c) processing order
(d) job order
Answer: processing order

96) A game having more than two players is called game.

a) multi-person
b) many person
c) n-person
d) unknown person
Answer: n-person

97) A situation in a game where, in the payoff matrix, maximin of row is equal to minimax of column
is called .
a) centre point
b) main point
c) saddle point
d) equal point
Answer: saddle point

98) The outcome of the interaction of selected strategies of opponents in a game is called _ .
a) income
b) profit
c) payoff
 d) Gains
Answer: payoff

99) The maximum time in which an activity will be completed assuming all possible delays and
postponements is termed as .
(a) optimistic time
(b) most likely time
(c) pessimistic time
(d) expected time
Answer: pessimistic time

100) The two types of costs involved in project crashing are and
costs.

(a) direct and indirect

(b) total and partial
(c) visible and invisible
(d) measurable and non-measurable

Answer: direct and indirect