1

For EOQ under planned shortages model, what relationship between

various cost components exists:
A ) Ordering Cost + Back Ordering Cost = Holding Cost
B ) Ordering Cost = Holding Cost + Back Ordering Cost
C ) Ordering Cost = Holding Cost Back Ordering Cost
D ) None of these
2
From the following statements relating to classical EOQ mode, mark
the incorrect one:
A ) Total Ordering Cost = Total Holding Cost
B ) Total Relevant Cost = (2DAh )
C ) If annual demand doubles with all other parameters remaining constant, the EOQ is doubled
D ) The lead-time is constant
3 Mark the wrong statement
A ) Inventory cycle is the time-period occurring between successive procurement actions
B ) Shortage cost is the penalty incurred for being unable to meet a demand as it occurs
C ) Lead-time is the elapsed time between the initiation of an order and the receipt of replenishment stock
D ) Among all models, the EOQ, with similar inputs, under classical model is the minimum
4 Mark the wrong statement
A ) In general, when back-ordering cost is small, orders are made less often but of higher quantity
B ) When back-ordering cost becomes infinite, the EOQ formula for the planned shortages model becomes the same as that of the classical model
C ) In planned shortages model, it is possible for re-order point to be a negative value.
D ) Like in classical EOQ model, the maximum stock level under back-ordering model is equal to the order quantity
5 Which of the following is not an assumption underlying classical EOQ model?
A ) The annual demand is constant and uniform
B ) Shortages are not permitted at all
C ) The lead-time is zero
D ) The holding cost per unit per year is constant
6 Mark the wrong statement
A ) If ordering cost/order and holding cost/unit are both doubled, it would double the quantity under classical EOQ model
B ) If ordering cost/order and holding cost/unit were both doubled, it would leave the order quantity under classical EOQ model unchanged
C ) If the annual demand increases by 20%, ordering cost reduces by 20% and holding cost increases by 50%, it would reduce the order quantity by 20%.
D ) In classical model, if lead-time = 8 working days and demand = 24 units a day, the re-order level = 192 units
7 Which of the following is not true?
A ) In deterministic inventory models, Re-order level = Demand during lead time (DDLT)
B ) In cases where demand is probabilistic, ROL = Expected DDLT + Safety Stock
C ) Greater the variation in demand and/or lead-time, greater the amount of safety stock needed
D ) Safety stock is the total stock kept to meet the demand during lead-time
8
If DDLT is known to be distributed normally with a variance of 6400,
then a safety stock of 160 units will yield approximately what level of
service?
A ) 48%
B ) 98%
C ) 2%
D ) 52%
9 For a 25% increase in order quantity (under classical EOQ model) the total relevant cost would
A ) Decrease by 2.5%
B ) Decrease by 0.25%
C ) Increase by 2.5%
D ) Increase by 1.025%
10 Mark the wrong statement
A ) The division of items into A, B and C categories is accomplished by plotting the usage value of items to obtain Pareto curve
B ) FNSD analysis represents the speed classification of items
C ) XYZ analysis is based on the classification of items according to their unit cost
D ) SOS is the classification as seasonal and off-seasonal, done with the aim of determining proper procurement strategies
11 Choose the incorrect statement
A ) Sequencing problems involve mainly jobs in a manufacturing plant
B ) Sequencing problems arise when we deal with situations where there is a choice of the order in which given tasks can be done
C ) In fairness, all the jobs must be done on a first-come-first served basis
D ) Maintenance scheduling problems are also solved as sequencing problems
12 Which of the following assumptions is not true about sequencing problems?
A ) The processing times on different machines are independent of the order in which jobs are processed on them
B ) First all the jobs are completed on the first machine and then their processing starts on the second machine
C ) A job once started would be performed to the point of completion uninterrupted
D ) A machine cannot process more than one job at a time
13 Mark the correct statement:
A ) A sequencing problem involving 5 jobs on 2 machines can be handled in 120 ways
B ) A sequencing problem involving 5 jobs and 3 machines requires evaluation of 555 = 125 sequences
C ) Sequencing is no problem because the total processing time for all jobs would be equal irrespective of the order in which they are processed due to given processing times that do not change
D ) Solution to a sequencing problem is found in such a manner that none of the machines is idle at any time
14 Mark the correct statement:
A ) Sequencing problems, big or small, can be conveniently handled using Gantt charts
B ) Gantt charts have a limitation that it is not possible to find total elapsed time with them
C ) A total of 40,320 Gantt charts need to be prepared for an 8-job sequencing problem
D ) The optimal sequence is one where jobs are processed on first-come-first served basis
15 Mark the wrong statement
A ) In an n- job 2-machine sequencing problem, it is necessary that each of the jobs have to be processed on the two-machines in the same order
B ) In solving a sequencing problem, the objective is to determine the sequence in which the jobs may be performed so that the total elapsed time is maximised
C ) The optimal sequence in a 2-machine problem minimises the idle time on the machine on which the jobs are performed later
D ) The optimal solution for a problem using Gantt chart and the algorithm would be the same
16 In terms of the Johnsons Rule, optimal sequence is obtained by the following rule
A ) Job j precedes job j +1 if Min (A
j
, B
j +1
) < Min (A
j +1
, B
j
)
B ) Job j precedes job j +1 if Min (A
j
, B
j +1
) > Min (A
j +1
, B
j
)
C ) Job j succeeds job j +1 if Min (A
j
, B
j +1
) < Min (A
j +1
, B
j
)
D ) None of the above.
17 Which of the following is not correct about n -job 2-machine (A and B) sequencing problem in which the order of processing is A-B?
A ) If minimum time of a job is on machine A, then do that job first
B ) If minimum time of a job is on machine B, then do that job in the end
C ) If there is a tie in the minimum times of two jobs: job 5 is on machine B and job 7 on machine A, then the jobs can be scheduled as (5, 7) in the beginning, or (7, 5) in the end
D ) If there is a tie in the timings of 2 or more jobs on machine B, then do them in any order in the last
18 Four jobs are to be processed on two machines A and B in the order AB. The timings of the jobs are known to be: (11, 9), (7, 18), (12, 16), and (3, 10). The optimal sequence would be:
A ) 2, 4, 3, 1
B ) 4, 2, 1, 3
C ) 4, 1, 3, 2
D ) 2, 3, 1, 4
19 Which of the following conditions should be satisfied in order that an n- job 3-machine problem may be solved using algorithm?(1) Min A
i
Max B
i
(2) Min A
i
Max B
i
(3) Min C
i
Max B
i
A ) 1 only
B ) 1 and 3
C ) 1 or 3 or both
D ) 2 or 3 or both
20 Consider the following conditions for solving sequencing problems requiring processing of n jobs on k machines in the order A, B, C,K.(1)Min A
i
Max B
i
, Max C
i
and Max J
i
(2) Min K
i
Max B
i
, Max C
i
and Max J
i
What is the requirement for applying the algorithm?
A ) Condition 1 only
B ) Condition 2 only
C ) Conditions 1 and 2 both
D ) Conditions either 1 or 2 or both
21 Choose the incorrect statement
A ) Sequencing problems involve mainly jobs in a manufacturing plant
B ) Sequencing problems arise when we deal with situations where there is a choice of the order in which given tasks can be done
C ) In fairness, all the jobs must be done on a first-come-first served basis
D ) Maintenance scheduling problems are also solved as sequencing problems
22 Which of the following assumptions is not true about sequencing problems?
A ) The processing times on different machines are independent of the order in which jobs are processed on them
B ) First all the jobs are completed on the first machine and then their processing starts on the second machine
C ) A job once started would be performed to the point of completion uninterrupted
D ) A machine cannot process more than one job at a time
23 Mark the correct statement:
A ) A sequencing problem involving 5 jobs on 2 machines can be handled in 120 ways
B ) A sequencing problem involving 5 jobs and 3 machines requires evaluation of 555 = 125 sequences
C ) Sequencing is no problem because the total processing time for all jobs would be equal irrespective of the order in which they are processed due to given processing times that do not change
D ) Solution to a sequencing problem is found in such a manner that none of the machines is idle at any time
24 Mark the correct statement:
A ) Sequencing problems, big or small, can be conveniently handled using Gantt charts
B ) Gantt charts have a limitation that it is not possible to find total elapsed time with them
C ) A total of 40,320 Gantt charts need to be prepared for an 8-job sequencing problem
D ) The optimal sequence is one where jobs are processed on first-come-first served basis
25 Mark the wrong statement
A ) In an n- job 2-machine sequencing problem, it is necessary that each of the jobs have to be processed on the two-machines in the same order
B ) In solving a sequencing problem, the objective is to determine the sequence in which the jobs may be performed so that the total elapsed time is maximised
C ) The optimal sequence in a 2-machine problem minimises the idle time on the machine on which the jobs are performed later
D ) The optimal solution for a problem using Gantt chart and the algorithm would be the same
26 In terms of the Johnsons Rule, optimal sequence is obtained by the following rule
A ) Job j precedes job j +1 if Min (A
j
, B
j +1
) < Min (A
j +1
, B
j
)
B ) Job j precedes job j +1 if Min (A
j
, B
j +1
) > Min (A
j +1
, B
j
)
C ) Job j succeeds job j +1 if Min (A
j
, B
j +1
) < Min (A
j +1
, B
j
)
D ) None of the above
27 Which of the following is not correct about n -job 2-machine (A and B) sequencing problem in which the order of processing is A-B?
A ) If minimum time of a job is on machine A, then do that job first
B ) If minimum time of a job is on machine B, then do that job in the end
C ) If there is a tie in the minimum times of two jobs: job 5 is on machine B and job 7 on machine A, then the jobs can be scheduled as (5, 7) in the beginning, or (7, 5) in the end
D ) If there is a tie in the timings of 2 or more jobs on machine B, then do them in any order in the last
28 Mark the correct statement:
A ) If one player has 2 strategies available to him while the other has more than 2, they are sure to play mixed strategies
B ) In mixed strategies, the value of game for both the players need not be the same
C ) If the optimal policy for A is found to be (8/13, 5/13) it implies that in long run games, he would play the first strategy and the second strategy at random in the ratio 8:5
D ) If the optimal solution to a game results in pure strategies, it implies that it has no saddle point.
29 The given payoff matrix of a game is transposed. Which of the following does not happen?
A ) The game value changes
B ) The saddle point changes
C ) A has as many strategies as B had, and B has as many strategies as A had
D ) The optimal strategies of the players do not change
30 For a two-person game where A and B are, respectively, the minimising and maximising players, the optimal strategies are
A ) Maximax for A and minimin for B
B ) Maximin for A and minimax for B
C ) Minimax for A and maximin for B
D ) Minimin for A and maximax for B
31 Mark the wrong statement:
A ) The solution to a game by graphic method may or may not be same as obtained by analytic method
B ) Any two-player game can be formulated and solved as an LPP
C ) The players have to play mixed strategies when saddle point to a game does not exist
D ) If the value of the game = 0, the game is said to be favouring none of the players
32 Mark the wrong statement:
A ) If each of the payoffs for a column strategy is equal to or greater than the corresponding payoff of another column strategy, the former is said to dominate the latter
B ) The game has a saddle point if the payoffs associated with maximin and minimax strategies are the same
C ) A game can have multiple saddle points
D ) The game value can be positive, negative or zero
33 Mark the correct statement:
A ) A game is said to be fair if each of the players has equal number of strategies
B ) The value of the game can be determined only if the game has a saddle point
C ) Player A is said to dominate the other if he has more strategies to play
D ) A game favours minimising player B if it has negative value.
34 In a 2-person game having saddle point, player B is the minimising player. B has 3 strategies available to him: b1, b2 and b3. For each of these it is known that: b1 : lowest payoff 2 highest payoff 21 b2 : lowest payoff -7 highest payoff 14 b3 : lowest payoff 6 highest payoff 8 What is the payoff associated with the optimal strategy of B?
A ) 21
B ) 6
C ) 8
D ) Cannot be determined from the given information
35 In a 2-player game having a saddle point, A is the maximising player with three strategies. The three A1: -8 to 12strategies have payoffs ranging as follows: A2: 6 to 18 A3: 2 to 21 The optimal strategy for A is
A ) A
1
B ) A
2
C ) A
3
D ) Is not determinable from the given information
36 A constant K is added to each element of a pay-off matrix related to a game. What effect will it have on the solution?
A ) The optimal strategies of the players and the value of the game remain unchanged
B ) The optimal strategies of the players do not change while the value of the game will increase by K.
C ) The optimal strategies of the players as well as game value will all change
D ) Nothing sure can be said about it
37 Mark the wrong statement.
A ) Moving forward from the first stage to the last is the final step in dynamic programming problem solution
B ) In an investment problem, addition of a new investment proposal adds a new state
C ) In dynamic programming, it is possible to get second-best solution as well as the best (optimal) solution
D ) f
n
*
(s
n
) represents the optimal pay-off at stage n , for state s
n
.
38 Mark the wrong statement.
A ) The recursive relationship establishes relationship between different states
B ) Creation of a recursive relationship is an integral part of the formulation of a dynamic programming problem
C ) A recursive relationship identifies the optimal policy for stage n , given that optimal policy for stage n +1 is available.
D ) In dynamic programming, it is possible to develop a recursive relationship for every problem.
39 Mark the wrong statement.
A ) States of a given stage represent the possible conditions in which the system might be in that particular stage
B ) A probabilistic dynamic programming problem is so called because states of various stages are not clearly defined
C ) Given the current state, the optimal policy for the remaining stages does not depend on the policy decisions adopted in the previous stages
D ) The optimal immediate decision depends only on the current state, and not how we got there.
40 Mark the wrong statement
A ) Dynamic programming may be deterministic or probabilistic
B ) In a dynamic programming problem, the state at the next stage is determined by the state and policy decision of the current stage
C ) In a probabilistic dynamic programming problem, the next stage is not sure and there is a probability distribution of what the next stage would be.
D ) In probabilistic dynamic programming problems, the optimal policy at a given stage is based on expected the pay-offs.
41 Mark the wrong statement.
A ) The effect of a policy decision at each stage is to transform the current state to a state associated with the beginning of the previous stage.
B ) Determination of optimal policy at a given state requires calculation of immediate and total pay-offs
C ) The best of all the (total) pay-offs in respect of different states of a stage is known as the optimal pay-off
D ) Optimal policy for the entire problem consists of determining optimal policy at each stage for each state.
42 Mark the wrong statement.
A ) Dynamic programming problems require making a sequence of interrelated decisions
B ) A state represents a decision point
C ) Depending upon the variable of interest, the solution to a dynamic programming problem calls for maximisation or minimisation of the pay-off
D ) Pay-off is also called the reward
43 Mark the incorrect statement
A ) Dynamic programming cannot be used for solving problems that call for distributing scarce resources
B ) Dynamic programming calls for dissecting a problem into a sequence of sub-problems
C ) Dynamic programming provides a generalised approach to problem solving
D ) Dynamic programming provides a multi-stage approach to solving problems.
44 Mark the correct statement
A ) Sub-problems of a given problem are called variables
B ) In dynamic programming, solution to each sub-problem is obtained independently
C ) Dynamic programming calls for standard mathematical formulation of a problem
D ) Dynamic programming provides for a systematic procedure for determining optimal combination of decisions
45 Mark the correct statement:
A ) Dynamic programming is a technique that can be used to solve any complex problem
B ) Dynamic programming uses a set of well-defined rules for solving all problems
C ) Dynamic programming divides a problem into a number of decision stages
D ) Dynamic programming deals only with deterministic decision-making problems.
46 Choose the correct alternative - The first step in dynamic programming is to
A ) Define the nodes.
B ) Determine the optimal policy
C ) Define the recursive relationship.
D ) Divide the given problem in to stages.
47 One can increase the chance that results of simulation are not erroneous by
A ) changing the input parameters
B ) using discrete probability distributions and not continuous
C ) validating the simulation
D ) all of the above
48 Mark the correct statement:
A ) Simulation cannot be used where mathematical methods can be used
B ) Solutions to decision problems by using simulation would be identical to those using mathematical models
C ) Simulation is descriptive in nature
D ) One drawback of using simulation is that it is only applicable where all quantities are deterministic
49 Which of the following statements is not true?
A ) In Monte Carlo simulation, a problem is solved by simulating the original data with random number generators
B ) A random number generator is a procedure or device to obtain random numbers
C ) In a series of random numbers, different digits appear in a definite, ordered fashion
D ) Random numbers generated by mid-square method are called pseudo-random numbers
50 Mark the wrong statement:
A ) For a deterministic model, a single simulation run is sufficient
B ) Probabilistic simulation is like random sampling whose output is subject to statistical error.
C ) Monte Carlo simulation involves modelling a deterministic system
D ) Randomness is a key requirement of Monte Carlo simulation
51 Mark the wrong statement:
A ) During the course of a simulation, the model mimics the important elements of what is being simulated
B ) A simulation model can never be physical.
C ) The model for simulation must be so designed that it would enable evaluation of the key decision alternatives
D ) In a mathematical model, mathematical symbols or equations are used to represent system relationships
52 Mark the wrong statement:
A ) A clear statement of the problem facilitates the development of an appropriate model
B ) Simulation aims to determine how the system under consideration would behave under certain conditions
C ) The scope and level of detail of simulation should be decided upon carefully
D ) The output of a simulation model is independent of the size of simulation run
53 Which of the following is not true about simulation?
A ) It is a very effective substitute for hunch and intuition in decision-making
B ) It is an optimising technique
C ) It seeks to determine how the system under consideration would behave in certain conditions
D ) It is effectively used in decision-making situations that cannot be handled with mathematical methods
54 Which of the following is not a phase of simulation process?
A ) Definition of the problem and statement of objectives
B ) Construction of an appropriate model
C ) Experimentation in real life situations
D ) Performing experiments on the model evolved
55 Mark the wrong statement:
A ) To simulate means to imitate a system
B ) Simulation involves developing a model of some real phenomenon and then experimenting on it
C ) Simulation is a powerful mathematical modelling tool.
D ) Simulation is very beneficial since results of taking a particular course of action can be estimated prior to its implementation in real world.
56 A company has sold 5000 and 7000 units in two consecutive years and incurred a loss of Rs 10,000 in the first year and Rs 5000 in the second year. The selling price per unit is Rs 100. What is the BEP?
A ) 9000 units
B ) 8000 units.
C ) 9500 units
D ) 10,000 units.
57 BEP is that level of production at which
A ) total revenue is equal to total cost
B ) there is no profit, no loss
C ) total contribution is just sufficient to recover the total fixed cost
D ) tll of the above
58 Margin of safety is
A ) the excess of actual sales over break-even sales.
B ) the excess of sales over total cost
C ) the excess of selling price per unit over fixed cost per unit
D ) the excess of total sales over total variable cost
59 P/V ratio is the ratio of
A ) profit to value of goods sold.
B ) profit to number of units sold
C ) contribution margin to sales.
D ) sales to contribution margin
60 Contribution margin refers to
A ) The excess of selling price over unit total cost.
B ) The excess of selling price over unit fixed cost.
C ) The excess of selling price over unit variable cost.
D ) None of the above.
61 IRR method is considered to be inferior to the NPV method because
A ) it is relatively more difficult to compute.
B ) it may give multiple rates of return.
C ) the underlying assumption of varying reinvestment rates is unrealistic.
D ) all of above.
62 Simulation approach to evaluate risky investments
A ) tests the impact of changes in factors affecting investments on investment decisions.
B ) identifies various factors affecting cash flows and their probability distributions to compute estimated returns
C ) increases the required rate of return to be used for discounting so as to compensate for risk involved.
D ) computes the period within which entire investment cost would be recovered.
63 The present value of an annuity of Rs 1356 to be received for 11 years is Rs 9227.85. The discount factor used is:
A ) 9%
B ) 10%
C ) 11%
D ) 7%
64 Following is not a method of evaluating an investment proposal under uncertainty.
A ) Discounted cash flow technique.
B ) Certainty equivalent approach.
C ) Simulation.
D ) Statistical distribution approach.
65 Discounting of cash flows is a technique to
A ) find discount offered in a deal.
B ) compute present value of a (series of) future payment(s).
C ) compute compounded value of a stream of cash flows.
D ) none of the above.
66 Mark the wrong statement
A ) In time-series data, fitting trend line to the given data makes future projections.
B ) Regression analysis deals with making forecasts about one or more dependent variables on the basis of one or more independent variables
C ) Explained variation is that component of total variation which is explained by the line of relationship.
D ) The ratio of explained variation to total variation is called co-efficient of determination.
67 Mark the wrong statement.
A ) MAD is equal to summation of forecast errors divided by n, where forecast error is the excess of actual value over forecast value
B ) If choice between two values of smoothing constant (a) is to be made, the one with lower MAD should be preferred
C ) Mean squared error is the average of the squared differences between the actual and forecasted values
D ) MAPE is the mean of absolute differences between actual and forecasted values, expressed as a percentage of the actual values
68 Which of these is not correct?
A ) In exponential smoothing, current forecast is obtained by adjusting the previous forecast by a fraction of the forecast error
B ) Forecast error = Forecasted value Actual value
C ) A high value of a gives relatively large weightage to recent value while a low value gives relatively low weightage.
D ) The weights used in exponential smoothing are a + a(1 - a) + a(1 - a)
2
+
69 Which of these is not correct about exponential smoothing?
A ) In this technique of forecasting, the forecasted value for a period is calculated as the weighted average of all the previous values
B ) Successive weightage of preceding time periods are declining.
C ) a is called the smoothing constant.
D ) Summation of weights is equal to 1 if a is low (less than 0.5) and more than 1 if a is high (more than 0.5)
70 Mark the correct statement
A ) An n-period simple moving average gives a weightage of 1/n to each value included in the average.
B ) Weighted moving average gives equal weightage to the various values under consideration
C ) For a given time-series set of data, the weighted average values would be consistently higher than simple moving average values
D ) In the 3-month moving average, the first forecast would be for the month 2 and calculated as simple average of months 1, 2 and 3
71 Which of the following is not true about time-series?
A ) It refers to time-based data.
B ) It consists of four components: secular trend, seasonal variations, cyclical variations and random variations.
C ) Forecasting with it implies that predictions about the future values are made only from past data
D ) It can be broken down into explained and unexplained variations
72 Mark the wrong statement
A ) Delphi method is an iterative group process that employs a group of experts
B ) In Delphi method of forecasting, the experts are usually not known to each other
C ) Exponential smoothing is a time-series model of forecasting.
D ) Time-series models are so called since they make possible forecasting at regular intervals of time
73 Mark the wrong statement.
A ) Qualitative forecasting is always better than quantitative forecasting.
B ) Delphi method is a method of qualitative forecasting.
C ) Quantitative forecasting methods are objective in nature.
D ) Consumer panels are used by marketing research methods
74 Which of these is not true about time series models of forecasting?
A ) They attempt to predict the future on the basis of historical data.
B ) They hold the future to be a continuum of the past.
C ) They are based on the premise that what would happen in future is a function of what has happened in the past.
D ) They are based on the past, present, and future conditions.
75 Mark the correct statement.
A ) Since future is uncertain, forecasting has absolutely no useful role.
B ) Qualitative models of forecasting make no use of numbers at any stage.
C ) Qualitative models employ personal judgement and involve qualities like intuition and judgement
D ) Delphi method is illustrative of quantitative models.
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Lead-time is the elapsed time between the initiation of an order and the receipt of replenishment stock
In general, when back-ordering cost is small, orders are made less often but of higher quantity
When back-ordering cost becomes infinite, the EOQ formula for the planned shortages model becomes the same as that of the classical model
Like in classical EOQ model, the maximum stock level under back-ordering model is equal to the order quantity
If ordering cost/order and holding cost/unit are both doubled, it would double the quantity under classical EOQ model
If ordering cost/order and holding cost/unit were both doubled, it would leave the order quantity under classical EOQ model unchanged
If the annual demand increases by 20%, ordering cost reduces by 20% and holding cost increases by 50%, it would reduce the order quantity by 20%.
In classical model, if lead-time = 8 working days and demand = 24 units a day, the re-order level = 192 units
For a 25% increase in order quantity (under classical EOQ model) the total relevant cost would
The division of items into A, B and C categories is accomplished by plotting the usage value of items to obtain Pareto curve
SOS is the classification as seasonal and off-seasonal, done with the aim of determining proper procurement strategies
Sequencing problems arise when we deal with situations where there is a choice of the order in which given tasks can be done
The processing times on different machines are independent of the order in which jobs are processed on them
First all the jobs are completed on the first machine and then their processing starts on the second machine
A sequencing problem involving 5 jobs and 3 machines requires evaluation of 555 = 125 sequences
Sequencing is no problem because the total processing time for all jobs would be equal irrespective of the order in which they are processed due to given processing times that do not change
Solution to a sequencing problem is found in such a manner that none of the machines is idle at any time
In an n- job 2-machine sequencing problem, it is necessary that each of the jobs have to be processed on the two-machines in the same order
In solving a sequencing problem, the objective is to determine the sequence in which the jobs may be performed so that the total elapsed time is maximised
The optimal sequence in a 2-machine problem minimises the idle time on the machine on which the jobs are performed later
Which of the following is not correct about n -job 2-machine (A and B) sequencing problem in which the order of processing is A-B?
If there is a tie in the minimum times of two jobs: job 5 is on machine B and job 7 on machine A, then the jobs can be scheduled as (5, 7) in the beginning, or (7, 5) in the end
If there is a tie in the timings of 2 or more jobs on machine B, then do them in any order in the last
Four jobs are to be processed on two machines A and B in the order AB. The timings of the jobs are known to be: (11, 9), (7, 18), (12, 16), and (3, 10). The optimal sequence would be:
Which of the following conditions should be satisfied in order that an n- job 3-machine problem may be solved using algorithm?(1) Min A
i
Max B
i
(2) Min A
i
Max B
i
(3) Min C
i
Max B
i
Consider the following conditions for solving sequencing problems requiring processing of n jobs on k machines in the order A, B, C,K.(1)Min A
i
Max B
i
, Max C
i
and Max J
i
(2) Min K
i
Max B
i
, Max C
i
and Max J
i
What is the requirement for applying the algorithm?
Sequencing problems arise when we deal with situations where there is a choice of the order in which given tasks can be done
The processing times on different machines are independent of the order in which jobs are processed on them
First all the jobs are completed on the first machine and then their processing starts on the second machine
A sequencing problem involving 5 jobs and 3 machines requires evaluation of 555 = 125 sequences
Sequencing is no problem because the total processing time for all jobs would be equal irrespective of the order in which they are processed due to given processing times that do not change
Solution to a sequencing problem is found in such a manner that none of the machines is idle at any time
In an n- job 2-machine sequencing problem, it is necessary that each of the jobs have to be processed on the two-machines in the same order
In solving a sequencing problem, the objective is to determine the sequence in which the jobs may be performed so that the total elapsed time is maximised
The optimal sequence in a 2-machine problem minimises the idle time on the machine on which the jobs are performed later
Which of the following is not correct about n -job 2-machine (A and B) sequencing problem in which the order of processing is A-B?
If there is a tie in the minimum times of two jobs: job 5 is on machine B and job 7 on machine A, then the jobs can be scheduled as (5, 7) in the beginning, or (7, 5) in the end
If there is a tie in the timings of 2 or more jobs on machine B, then do them in any order in the last
If one player has 2 strategies available to him while the other has more than 2, they are sure to play mixed strategies
If the optimal policy for A is found to be (8/13, 5/13) it implies that in long run games, he would play the first strategy and the second strategy at random in the ratio 8:5
If the optimal solution to a game results in pure strategies, it implies that it has no saddle point.
For a two-person game where A and B are, respectively, the minimising and maximising players, the optimal strategies are
The solution to a game by graphic method may or may not be same as obtained by analytic method
If each of the payoffs for a column strategy is equal to or greater than the corresponding payoff of another column strategy, the former is said to dominate the latter
The game has a saddle point if the payoffs associated with maximin and minimax strategies are the same
In a 2-person game having saddle point, player B is the minimising player. B has 3 strategies available to him: b1, b2 and b3. For each of these it is known that: b1 : lowest payoff 2 highest payoff 21 b2 : lowest payoff -7 highest payoff 14 b3 : lowest payoff 6 highest payoff 8 What is the payoff associated with the optimal strategy of B?
In a 2-player game having a saddle point, A is the maximising player with three strategies. The three A1: -8 to 12strategies have payoffs ranging as follows: A2: 6 to 18 A3: 2 to 21 The optimal strategy for A is
A constant K is added to each element of a pay-off matrix related to a game. What effect will it have on the solution?
The optimal strategies of the players do not change while the value of the game will increase by K.
Moving forward from the first stage to the last is the final step in dynamic programming problem solution
In dynamic programming, it is possible to get second-best solution as well as the best (optimal) solution
Creation of a recursive relationship is an integral part of the formulation of a dynamic programming problem
A recursive relationship identifies the optimal policy for stage n , given that optimal policy for stage n +1 is available.
States of a given stage represent the possible conditions in which the system might be in that particular stage
A probabilistic dynamic programming problem is so called because states of various stages are not clearly defined
Given the current state, the optimal policy for the remaining stages does not depend on the policy decisions adopted in the previous stages
In a dynamic programming problem, the state at the next stage is determined by the state and policy decision of the current stage
In a probabilistic dynamic programming problem, the next stage is not sure and there is a probability distribution of what the next stage would be.
In probabilistic dynamic programming problems, the optimal policy at a given stage is based on expected the pay-offs.
The effect of a policy decision at each stage is to transform the current state to a state associated with the beginning of the previous stage.
Determination of optimal policy at a given state requires calculation of immediate and total pay-offs
The best of all the (total) pay-offs in respect of different states of a stage is known as the optimal pay-off
Optimal policy for the entire problem consists of determining optimal policy at each stage for each state.
Depending upon the variable of interest, the solution to a dynamic programming problem calls for maximisation or minimisation of the pay-off
Dynamic programming cannot be used for solving problems that call for distributing scarce resources
Dynamic programming provides for a systematic procedure for determining optimal combination of decisions
Solutions to decision problems by using simulation would be identical to those using mathematical models
One drawback of using simulation is that it is only applicable where all quantities are deterministic
In Monte Carlo simulation, a problem is solved by simulating the original data with random number generators
During the course of a simulation, the model mimics the important elements of what is being simulated
The model for simulation must be so designed that it would enable evaluation of the key decision alternatives
In a mathematical model, mathematical symbols or equations are used to represent system relationships
Simulation aims to determine how the system under consideration would behave under certain conditions
It is effectively used in decision-making situations that cannot be handled with mathematical methods
Simulation involves developing a model of some real phenomenon and then experimenting on it
Simulation is very beneficial since results of taking a particular course of action can be estimated prior to its implementation in real world.
A company has sold 5000 and 7000 units in two consecutive years and incurred a loss of Rs 10,000 in the first year and Rs 5000 in the second year. The selling price per unit is Rs 100. What is the BEP?
identifies various factors affecting cash flows and their probability distributions to compute estimated returns
increases the required rate of return to be used for discounting so as to compensate for risk involved.
The present value of an annuity of Rs 1356 to be received for 11 years is Rs 9227.85. The discount factor used is:
Regression analysis deals with making forecasts about one or more dependent variables on the basis of one or more independent variables
Explained variation is that component of total variation which is explained by the line of relationship.
MAD is equal to summation of forecast errors divided by n, where forecast error is the excess of actual value over forecast value
If choice between two values of smoothing constant (a) is to be made, the one with lower MAD should be preferred
Mean squared error is the average of the squared differences between the actual and forecasted values
MAPE is the mean of absolute differences between actual and forecasted values, expressed as a percentage of the actual values
In exponential smoothing, current forecast is obtained by adjusting the previous forecast by a fraction of the forecast error
A high value of a gives relatively large weightage to recent value while a low value gives relatively low weightage.
In this technique of forecasting, the forecasted value for a period is calculated as the weighted average of all the previous values
Summation of weights is equal to 1 if a is low (less than 0.5) and more than 1 if a is high (more than 0.5)
An n-period simple moving average gives a weightage of 1/n to each value included in the average.
For a given time-series set of data, the weighted average values would be consistently higher than simple moving average values
In the 3-month moving average, the first forecast would be for the month 2 and calculated as simple average of months 1, 2 and 3
It consists of four components: secular trend, seasonal variations, cyclical variations and random variations.
Forecasting with it implies that predictions about the future values are made only from past data
Time-series models are so called since they make possible forecasting at regular intervals of time
They are based on the premise that what would happen in future is a function of what has happened in the past.
Qualitative models employ personal judgement and involve qualities like intuition and judgement
Which of the following conditions should be satisfied in order that an n- job 3-machine problem may be solved using algorithm?(1) Min A
i
Max B
i
(2) Min A
i
Max B
i
(3) Min C
i
Max B
i
Consider the following conditions for solving sequencing problems requiring processing of n jobs on k machines in the order A, B, C,K.(1)Min A
i
Max B
i
, Max C
i
and Max J
i
(2) Min K
i
Max B
i
, Max C
i
and Max J
i
What is the requirement for applying the algorithm?
In a 2-person game having saddle point, player B is the minimising player. B has 3 strategies available to him: b1, b2 and b3. For each of these it is known that: b1 : lowest payoff 2 highest payoff 21 b2 : lowest payoff -7 highest payoff 14 b3 : lowest payoff 6 highest payoff 8 What is the payoff associated with the optimal strategy of B?
In a 2-player game having a saddle point, A is the maximising player with three strategies. The three A1: -8 to 12strategies have payoffs ranging as follows: A2: 6 to 18 A3: 2 to 21 The optimal strategy for A is
A company has sold 5000 and 7000 units in two consecutive years and incurred a loss of Rs 10,000 in the first year and Rs 5000 in the second year. The selling price per unit is Rs 100. What is the BEP?
In a 2-person game having saddle point, player B is the minimising player. B has 3 strategies available to him: b1, b2 and b3. For each of these it is known that: b1 : lowest payoff 2 highest payoff 21 b2 : lowest payoff -7 highest payoff 14 b3 : lowest payoff 6 highest payoff 8 What is the payoff associated with the optimal strategy of B?