Exam 1: Management Science

The College Coffee Café buys tea from three suppliers. The price per pound is $15.00 from supplier A, $17.50 from supplier B, and $21.00 from supplier C. They have budgeted $175 to purchase the tea. The café needs at least 12 pounds of tea, and supplier C can supply no more than 4 pounds. Develop constraints for these conditions.

Administrators at a university will charge students $150 to attend a seminar. It costs $3000 to reserve a room, hire an instructor, and bring in the equipment. Assume it costs $25 per student for the administrators to provide the course materials. How many students would have to register for the seminar for the university to break even?

Decision analysis is a ________ technique.

A production process requires a fixed cost of $50,000 and the variable cost per unit is $25. The revenue per unit was projected to be $45, but a recent marketing study shows that because of an emerging competitor, the revenue will be about 12% lower. How does this affect the break-even point?

A ________ programming technique refers to a predetermined set of mathematical steps used to solve a problem.

________ depend on the number of items produced.

Which variable is not a component of break-even analysis?

Enterprise Resource Planning (ERP) system is a data-oriented decision support system that utilizes specific management science solution procedures to solve individual problems such as cost-volume analysis.

If the price increases, but fixed and variable costs do not change, the break-even point

Variable costs depend on the number of items produced.

A popular performer is scheduled to appear at a major city. The promoter is deciding between two venues, the larger of which costs $20,000 to rent and the smaller of which costs $12,000 to rent. Ticket prices for the smaller venue are $20, but the promoter is unsure what to charge per ticket for the larger venue. If exactly 1000 customers arrive, what percentage change in ticket prices would make the profit at the large venue identical to that of the smaller venue?

One way to test how a management science model reacts to changes in its parameters is to conduct ________ analysis.

Total revenue minus total cost equals ________.

________ consist of models that are represented as diagrams rather than as strictly mathematical techniques.

Which of the following is incorrect with respect to the use of models in decision making?

Data are pieces of information from the problem environment.

A group of professors struggles to craft a set of assessment questions for their operations management intro class. They want to cover four topic areas with at least four questions each and have no more than twenty questions total for the assessment. What would a set of constraints look like if they chose an optimization approach to the assessment?

Fixed cost is the difference between total cost and total variable cost.

Which of the following is an equation or an inequality that expresses a resource restriction in a mathematical model?

The relationship d = 5000 - 25p describes what happens to demand (d) as price (p) varies. Price can vary between $10 and $50. How many units can be sold when the price is $10?