UCONN MBA PROGRAM
OPIM 310 OPERATIONS MANAGEMENT
Quiz 1 Sample
2 hours, 20 pts
All multiple-choice questions carry 0.5 point. Show your work for numerical problems. Open notes, book, computer, templates.
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1. A linear programming problem when the objective function is parallel to one of the constraints, then
a) The solution is sub-optimal.
b) Multiple optimal solutions exist.
c) A single corner point solution exists
d) No feasible solution exists.
2. In linear programming, when some variables need to be integer, the objective function value will be
a) Better than if the variables could be real
b) Worse than if the variables could be real
c) Identical to when the variables could be real
d) None of the above.
3. Which of the following is not involved in an LP model?
a) An objective to maximize or minimize
b) Cost or price data
c) Resource constraints
d) Integer or real value variables
e) Random numbers.
4. In revenue management, which of the following is are not true
a) Differentiate between the market segments
b) Price different segments differently
c) Allow all customers to buy inventory at either price.
d) Reserve some inventory for the higher class customers.
5. In the Northco Case, postponement or delayed differentiation can be practiced by
a) Producing to SKU level forecasts directly.
b) Producing generic products first and customizing later
c) Merging with another company
d) Postponing payment for deliveries.
6. In revenue management, you lose money if
a) More high paying customers show up than the reserved amount.
b) Fewer high paying customers show up than the reserved amount.
c) More low paying customers show up than the reserved amount.
d) Fewer low paying customers how up than the reserved amount.
7. In the Global Financial Corp case, the following gave the best results
a) Pooling Evaluation and analysis
b) Pooling Loan terms
c) Having all teams do all steps.
d) Pooling E&A but handling Loan terms by region.
8. In a single server system if both the arrival rate and the service rate increase by 10% (assuming Poisson arrival and service),
a) The system utilization decreases.
b) There is no change in average number of customers in queue.
c) There is an increase in the average number of customers in queue.
d) None of the above.
9. In the Global Financial Corp case, the bottleneck was in
a) Region 1 of Evaluation and Analysis.
b) Region 2 of Evaluation and Analysis.
c) Region 3 of Evaluation and Analysis.
d) Interest rate determination.
10. Which of the following distributions cannot be simulated
a) Uniform
b) Poisson.
c) Normal.
d) All of these can be simulated.
11. Which of the items below would not be considered in determining the reorder point?
a) EOQ.
b) Lead time.
c) Variability of demand.
d) Demand.
12. In a two-bin system, the amount contained in the second bin is equal to the?
a) ROP
b) EOQ.
c) amount in the first bin.
d) safety stock.
13. A queueing system has four crews with three members each. The number of “servers” is
a) 3
b) 4
c) 12
d) 7.
14. In the Northco case, if you had the choice to produce a certain group of uniforms early due to higher predictive accuracy, they would be
a) Low demand items
b) Medium demand items
c) High demand items
d) None of the above
15. A drive through system at McDonald's where the first facility takes the order, the second takes the money and the third provides the food is an example of
a) Single channel-single phase system
b) Single channel-multi phase system
c) Multi channel-single phase system
d) Multi channel-multi phase system.
16. In the Northco case, the disadvantage of implementing cash less fittings is it would
a) decrease forecasting accuracy
b) require more working capital
c) result in more inventory obsolescence
d) result in late customer orders.
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Attempt any 1 of the following 3 questions
17. (6 pts) All trucks traveling a particular highway are required to stop at a weigh station with one weigh scale. Trucks arrive at the rate of 200 per 8-hour day, and the station can weigh on average 220 trucks per day. The state estimates that for every minute reduction in total time spent by the truckers, the state will gain $4000/year in extra taxes by truckers who will not avoid the weigh station by driving at night or taking alternative routes. It costs $50,000/year to install and operate a second set of scales. Should the state invest in this second set of scales?
18. (6 pts) The average daily demand for a particular lubricant is 45 liters (250 working days in a year), which is normally distributed with a standard deviation of 3 liters/day. The price of this item is $4/liter and the ordering cost is $100. The company has an annual inventory carrying charge of 25%. Lead-time for procurement has been 9 days.
a) What is the EOQ for this item?
b) If a service level of 87% is desired, what should be the re-order point?
c) Suppose they order this item whenever the stock level hits 420. What is the chance of a stock-out?
19. (6 pts) A hotel has two room rates for the same rooms based on how far in advance the reservations are made. The higher rate is $150 per room and the lower rate is $105 per room. The demand distribution for the higher rate rooms is normally distributed with a mean of 80 rooms and a standard deviation of 10.
a) How many rooms should be reserved for the high paying customers?
b) After a few months of using the policy from (a) above, the hotel finds that some of the lower class customers who are refused rooms due to the reservation policy “buy up” and pay the higher rate to get a room. Can you guess if the rooms reserved for the higher paying customers in (a) should be increased or decreased as a result of this observation? Support your argument in a couple of sentences.
Attempt any 1 of the following 2 questions
20. (6 pts) Your niece is selling Girl Scout cookies from door-to-door in your neighborhood over a 7-day period. The number of homes she visits every day is uniformly distributed between 1 and 4. Assume a sale at each home visited. The number of varieties (Thin Mints, Caramel Delites, etc.) of cookies bought at each home follows the following distribution
# Varieties bought1 / 2 / 3 / 4
Probability / 0.1 / 0.4 / 0.3 / 0.2
The average amount spent on each variety is Normally distributed with a mean of $8 and a standard deviation of 2 (Hint: use random number generator in Excel). Do a simulation of sales over the 7-day period. Assume the same number of varieties and average sale in each home visited on a particular day. How many dollars did your niece collect?
21. (6 pts) Atlantic Chemical produces three products A,B,C, which can be blended from three ores, X,Y,Z. The following are the costs and availability of these ores, the amounts required per ton of product, and the sales price of the three products.
Tons required/ton productX / Y / Z / Price/ton, $
A / 5 / 10 / 20 / 130
B / 7 / 8 / 5 / 140
C / 10 / 5 / 0 / 100
Ore availability, tons / 1000 / 800 / 5000
Ore cost/ton, $ / 2 / 1.5 / 3
The company wishes to determine how much of each product to make so as to maximize the profit from the overall operation.
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