Revision
Business Department
SPRING 2016-17
FINAL EXAM/REVISION
MGMT 406, Operations Man.
© 2013-14- Prof.Dr. Sami Fethi, EMU, Revision
Revision
Section A/Multiple Choice-Example
Compulsory section
1) In the process of evaluating location alternatives, the transportation
model method minimizes
A) number of destinations
B) total shipping cost
C) total supply
D) total demand
2) Which of the following statements is not true in transportation
modeling framework?
A) Special form of linear programming model similar to the transportation
model.
B) Supply at each source and demand at each destination limited to one
unit.
C) In a balanced model supply may equal demand
D) In an unbalanced model supply does not equal demand
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MGMT 406, Opearations Man....
© 2013-14- Prof.Dr Sami Fethi, EMU, Revision
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Section A/Multiple Choice-Example (35 points)
3) The difference between the assignment and the transportation
problem is that
A) the number of origins must equal the number of destinations in the
transportation problem
B) total supply must equal total demand in the assignment problem
C) each supply and demand value is 1 in the assignment problem
D) A and B
4) The slope of a curve at any point is __________ the derivative of the curves
function.
A) equal to
B) larger than
C) smaller than
D)
none of the above
5) Branch and Bound method does not contain __________.
A) Smaller subsets
B) A tedious process
C) A mathematical process
D) Excel solution only
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MGMT 406, Opearations Man....
© 2013-14- Prof.Dr Sami Fethi, EMU, Revision
Revision
Section A/Multiple Choice-Example (30 points)
6) Which of the following explains the concept of Dummy?
A) Demand equals supply B) Demand less than supply C) balanced
condition D) makes profit to increase
7) Which of the following statements is not true in nonlinear problem
characteristics?
A) Solution is often not on the boundary of the feasible solution space.
B) Cannot simply look at points on the solution space boundary
C) Solution techniques can be very complex.
D) Nonlinear Characteristics do not reflect the practices in real world.
8) ’if the case is a production of jet aircraft, round off could affect profit or cost
by million dollar considering 7.4 jet airliners as 7 or 8.’
Which of the following method explains the statement above?
A) 0-1 Integer Model
B) Total Integer Model
C) Mixed Integer Model
D) Gromory cutting plane Method
MGMT 406, Opearations Man....
© 2013-14- Prof.Dr Sami Fethi, EMU, Revision
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Revision
Section A/Multiple Choice-Example (20 points)
9) Which of the following methods is convenient for Assignment
problems?
A) VAM model
B) NorthWest method
C) Least cost method
D) Hungarian method
10) Which of the following statements is not true for facility
location?
A) It serves several customers
B) It reduces transportation costs
C) It maximizes customers’ utility
D) It keeps the distance almost equally and likely
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MGMT 406, Opearations Man....
© 2013-14- Prof.Dr Sami Fethi, EMU, Revision
Revision
Section B/type 1-Example- IP (40 points)
Asnwer one question out of the following two questions
Considering the following system equations and final simplex tableau:
Maximize Z = $ 3x1 + $ 5x2
Subject to:
1 x1 + 4 x2  9
2 x1 + 3 x2  4
Non-negativity
x1, x2  0 and integer
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MGMT 406, Opearations Man....
© 2013-14- Prof.Dr Sami Fethi, EMU, Revision
Revision
Section B/type 1-Example- IP
Asnwer one question out of the following two questions
3
5
0
0
C
Pmix
Quan
X1
X2
S1
S2
5
X2
7/5
0
1
2/5
-1/5
3
X1
17/5
1
0
-3/5
4/5
Z
86/5
3
5
1/5
7/5
0
0
-1/5
-7/5
C-Z
Find the integer programming solution to this problem.
Ans: You can find out its answer in Answer set 5...
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MGMT 406, Opearations Man....
© 2013-14- Prof.Dr Sami Fethi, EMU, Revision
Revision
Section Section B/type 2-VOGEL/NCW(40 points)
NWC
To
From
A
B
C
Demand
(Cost)
1
$6
$5
$8
90
2
7
3
5
195
3
4
6
7
190
supply
100
175
200
 Use Vogel method and calculate the optimal solution.
 Use NCW method and calculate the optimal solution.
 Discuss the answers calculated in section a and b.
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MGMT 406, Opearations Man....
© 2013-14- Prof.Dr Sami Fethi, EMU, Revision
Revision
Section B/Type 2-Example-NCW
NWC
To
From
A
B
C
Demand
A
B
B
C
C
(Cost)
1
$ 6*90
$5
$8
90
2
7*10
3*175
5 *10
195
3
4
6
7 *190
190
supply
100
175
200
→ 1 =90*6 =540
→ 1 =7*10 =70
→ 2 =3*175 =525
→ 2=5*10 =50
→ 3 =7*190=1330
NWC Total= 2,515
VOGEL total cost is 2465
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MGMT 406, Opearations Man....
© 2013-14- Prof.Dr Sami Fethi, EMU, Revision
Revision
Section C/Type1- LF-(40 points)
The Burger Doodle restaurant chain purchases ingredients from four different food
suppliers. The company wants to construct a new central distribution center to process
and package the ingredients it uses in its menu items before shipping them to their
various restaurants. The suppliers transport the food items in 40-foot tractor-trailer
trucks. The coordinates of the four suppliers and the annual number of truckloads that
will be transported to the distribution center are as follows:
Coordinates
Supplier
x
y
Annual Truckloads
A
200
200
65
B
100
500
120
C
250
600
90
D
500
300
75
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MGMT 406, Opearations Man....
© 2013-14- Prof.Dr Sami Fethi, EMU, Revision
Revision
Section C/Type1- FL
a) Graphically illustrate the coordinates on a map and identify the closest town
to these coordinates.
b) Determine individual distance for the new warehouse.
c) Determine the total distance for the new warehouse.
d) Explain briefly the concept of the facility location problem.
Ans: You can find out its answer in Answer set 7...
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MGMT 406, Opearations Man....
© 2013-14- Prof.Dr Sami Fethi, EMU, Revision
Revision
Section C/type 2- NL
 The Hickory Cahinet and Furniture Company makes chairs.
The fixed cost per month of making chairs is $7,500, and the
variable cost per chair is $40. Price is related to demand,
according to the following linear equation:
 V=400— l.2p
a) Develop the nonlinear profit function for this company
b) Determine the price that will maximize profit, the optimal
volume, and the maximum profit per month
c) Critically discuss the results calculated previously.
 Ans: You can find out its answer in Answer set 7...
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MGMT 406, Opearations Man....
© 2013-14- Prof.Dr Sami Fethi, EMU, Revision
Revision
Section D/Bonus- Hungarian method
Asnwer the following question
Region
Days
Sales
person
A
B
C
D
E
1
17
10
15
16
20
2
12
9
16
9
14
3
11
16
14
15
12
4
14
10
10
18
17
5
13
12
9
15
11
a) Use the information in the table above and find the best possible
solution.
b) Determine the dispatch program between the projects and plants.
Calculate individual time and total minimum time.
c) Discuss the two methods and their results you applied above.
Ans: You can find out its answer in Answer set 6.
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MGMT 406, Opearations Man....
© 2013-14- Prof.Dr Sami Fethi, EMU, Revision
Revision
Good luck
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MGMT 406, Opearations Man....
© 2013-14- Prof.Dr Sami Fethi, EMU, Revision