Management Science Mid-term Chpt.

1-3

1. Managers need to know the mathematical theory behind the techniques of

management science so that they can lead management science teams.
False

2. Management scientists use mathematical techniques to make decisions, which

are then implemented by managers.
False

3. Spreadsheets allow many managers to conduct their own analyses in

management science studies.
True

4. Managers must rely on management science experts to create and understand

managerial problems.
False

5. Management science is a discipline that attempts to aid managerial decision

making by applying a scientific approach to managerial problems that involve
quantitative factors.
True

6. The discovery of the simplex method in 1947 was the beginning of management
science as a discipline.
False

7. The rapid growth of computing capability and power has led to a corresponding
rapid growth of the management science discipline.
True

8. Managers make decisions based solely on the quantitative factors involved in the
problem.
False

9. A management science team will try to conduct a systematic investigation of a

problem that includes careful data gathering, developing and testing hypotheses,
and then applying sound logic in the analysis.
True

10. The mathematical model of a business problem is the system of equations and
related mathematical expressions that describes the essence of the problem.
True
11. A mathematical model of a business problem allows a manager to evaluate both
quantitative and qualitative aspects of the problem.
False

12. Once management makes its decisions, the management science team typically
is finished with its involvement in the problem.
False

13. A cost that varies with the production volume would be a fixed cost.
False

14. A cost that varies with the production volume would be a variable cost.
True

15. A cost that does not vary with the production volume would be a fixed cost.
True

16. A cost that does not vary with the production volume would be a variable cost.
False

17. At the break-even point, management is indifferent between producing a product

and not producing it.
True

18. The best way to solve a break-even problem with a spreadsheet model is to try
different production quantities until the quantity that leads to profits of zero is
found.
False

19. A constraint is an algebraic variable that represents a quantifiable decision to be

made.
False

20. A decision variable is an algebraic variable that represents a quantifiable

decision to be made.
True

21. A parameter in a model is a variable that represents a decision to be made.

False

22. The objective function for a model is a mathematical expression of the measure
of performance for the problem in terms of the decision variables.
True

23. Sensitivity analysis is used to check the effect of changes in the model.
True
24. Investigating the potential outcomes when estimates turn out to be incorrect is
known as "what-if analysis."
True

25. "What-if analysis" is a process used to generate estimates for use in

mathematical models
False

26. Linear programming problems may have multiple goals or objectives specified.
False

27. Linear programming allows a manager to find the best mix of activities to pursue
and at what levels.
True

28. Linear programming problems always involve either maximizing or minimizing an

objective function
True

29. All linear programming models have an objective function and at least two
constraints.
False

30. Constraints limit the alternatives available to a decision maker.

True

31. When formulating a linear programming problem on a spreadsheet, the data cells
will show the optimal solution.
False

32. When formulating a linear programming problem on a spreadsheet, objective

cells will show the levels of activities for the decisions being made.
False

33. When formulating a linear programming problem on a spreadsheet, the Excel

equation for each output cell can typically be expressed as a SUMPRODUCT
function.
True

34. One of the great strengths of spreadsheets is their flexibility for dealing with a
wide variety of problems.
True

35. Linear programming problems can be formulated both algebraically and on

spreadsheets.
 True

36. The parameters of a model are the numbers in the data cells of a spreadsheet.
True

37. An example of a decision variable in a linear programming problem is profit

maximization
False

38. A feasible solution is one that satisfies all the constraints of a linear programming
problem simultaneously.
True

39. An infeasible solution violates all of the constraints of the problem

False

40. The best feasible solution is called the optimal solution.

True

41. Since all linear programming models must contain nonnegativity constraints,
Solver will automatically include them and it is not necessary to add them to a
formulation.
False

42. The line forming the boundary of what is permitted by a constraint is referred to
as a parameter.
43. False

44. The origin satisfies any constraint with a ≥ sign and a positive right-hand side.
False

45. The feasible region only contains points that satisfy all constraints.
True

46. A circle would be an example of a feasible region for a linear programming

problem.
False

47. The equation 5x + 7y = 10 is linear.

True

48. The equation 3xy = 9 is linear.

False

49. The graphical method can handle problems that involve any number of decision
variables
 False

50. An objective function represents a family of parallel lines.

True

51. When solving linear programming problems graphically, there are an infinite
number of possible objective function lines.
True

52. For a graph where the horizontal axis represents the variable x and the vertical
axis represents the variable y, the slope of a line is the change in y when x is
increased by 1.
True

53. The value of the objective function decreases as the objective function line is
moved away from the origin.
False

54. A feasible point on the optimal objective function line is an optimal solution.
True

55. A linear programming problem can have multiple optimal solutions

True

56. All constraints in a linear programming problem are either ≤ or ≥ inequalities.

False

57. Linear programming models can have either ≤ or ≥ inequality constraints but not
in the same problem.
False

58. A maximization problem can generally be characterized by having all ≥

constraints.
False

59. If a single optimal solution exists while using the graphical method to solve a
linear programming problem, it will exist at a corner point
True

60. When solving a maximization problem graphically, it is generally the goal to move
the objective function line out, away from the origin, as far as possible.
True

61. When solving a minimization problem graphically, it is generally the goal to move
the objective function line out, away from the origin, as far as possible.
False
62. When formulating a linear programming model on a spreadsheet, the decisions
to be made are located in the data cells.
False

63. When formulating a linear programming model on a spreadsheet, the constraints

are located (in part) in the output cells.
True

64. When formulating a linear programming model on a spreadsheet, the measure of

performance is located in the objective cell
True

65. A mathematical model will be an exact representation of the real problem.

False

66. Approximations and simplifying assumptions generally are required to have a

workable model.
True

67. Linear programming does not permit fractional solutions.

False

68. When formulating a linear programming problem on a spreadsheet, data cells will
show the levels of activities for the decisions being made.
False

69. A key assumption of linear programming is that the equation for each of the
output cells, including the objective cell, can be expressed as a SUMPRODUCT
(or SUM) function
True

70. Resource-allocation problems are linear programming problems involving the

allocation of limited resources to activities.
True

71. Strict inequalities (i.e., < or >) are not permitted in linear programming
formulations
True

72. When studying a resource-allocation problem, it is necessary to determine the

contribution per unit of each activity to the overall measure of performance.
True

73. It is usually quite simple to obtain estimates of parameters in a linear

programming problem
 False

74. The objective cell is a special kind of output cell.

True

75. Financial planning is one of the most important areas of application for cost-
benefit-tradeoff problems.
False

76. A resource constraint refers to any functional constraint with a ≥ sign in a linear
programming model.
False

77. In the algebraic form of a resource constraint, the coefficient of each decision
variable is the resource usage per unit of the corresponding activity
True

78. Cost-benefit-tradeoff problems are linear programming problems involving the

allocation of limited resources to activities.
False

79. For cost-benefit-tradeoff problems, minimum acceptable levels for each kind of
benefit are prescribed and the objective is to achieve all these benefits with
minimum cost.
True

80. A benefit constraint refers to a functional constraint with a ≥ sign in a linear

programming model.
True

81. In most cases, the minimum acceptable level for a cost-benefit-tradeoff problem
is set by how much money is available.
False

82. It is the nature of the application that determines the classification of the resulting
linear programming formulation.
False

83. It is the nature of the restrictions imposed on the decisions regarding the mix of
activity levels that determines the classification of the resulting linear
programming formulation.
True

84. It is fairly common to have both resource constraints and benefit constraints in
the same formulation.
True
85. Choosing the best tradeoff between cost and benefits is a managerial judgment
decision
True

86. Having one requirement for each location is a characteristic common to all
transportation problems.
True

87. Fixed-requirement constraints in a linear programming model are functional

constraints that use an equal sign.
True

88. The capacity row in a distribution-network formulation shows the maximum

number of units than can be shipped through the network.
False

89. Once a linear programming problem has been formulated, it is rare to make
major adjustments to it.
False

90. A mixed linear programming problem will always contain some of each of the
three types of constraints in it.
False

91. Blending problems are a special type of mixed linear programming problems.
True

92. Model formulation should precede problem formulation.

False

93. When dealing with huge real problems, there is no such thing as the perfectly
correct linear programming model for the problem.
True

94. Transportation problems are concerned with distributing commodities from

sources to destinations in such a way as to minimize the total distribution cost.
True

95. Transportation problems always involve shipping goods from one location to
another.
False

96. The requirements assumption states that each source has a fixed supply of units,
where the entire supply must be distributed to the destinations and that each
 destination has a fixed demand for units, where the entire demand must be
received from the sources.
True

97. A transportation problem requires a unit cost for every source-destination

combination.
True

98. An assignment problem is a special type of transportation problem.

True

99. Generally, assignment problems match people to an equal number of tasks at a

minimum cost.
True

100. A transportation problem will always return integer values for all decision
variables.
True

101. In an assignment problem, it is necessary to add an integer constraint to

the decision variables to ensure that they will take on a value of either 0 or 1.
False

102. A linear programming problem may return fractional solutions (e.g. 4 1/3)
for a resource allocation problem.
True

103. In a cost-benefit-trade-off problem, management defines the maximum

amount that can be spent and the objective is to maximize benefits within this
cost target.
False

104. Transportation and assignment problems are examples of fixed-

requirement problems.
True

105. A transportation problem with 3 factories and 4 customers will have 12

shipping lanes.
True

106. A transportation problem with 3 factories and 4 customers will have 12

fixed-requirement constraints
False

107. The discovery of the simplex method in 1947 was the beginning of
management science as a discipline.
 False

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