1. What is the objective function in Liner Programming model?

A. A constraint for available resource

B. An objective for research and development of a company
C. A linear function in an optimization problem
D. A set of non-negativity conditions
2. Allocation problems can be solved by _____
A. Non-Linear Programming Technique
B. Linear Programming Technique
C. Both options
D. None of the options
3. If the total supply is less than the total demand, a dummy source (row) is included in the cost matrix
with________
A. Dummy Demand
B. Dummy Supply
C. Zero Cost
D. Both A and B
4. This is the logo of __________(Ans: Stockarea)

5. A self-service store employs one cashier at its counter. 8 customers arrive on an average every 5
minutes, whereas cashier can serve 10 customers in same time. Assuming Poisson distribution for
service rate, the average time a customer spends in the queue will be
A. 4 minutes
B. 3 minutes
C. 2 minutes
D. 1 minute

Solution

8 customers arrive on an average every 5 minutes -> arrival rate λ = 8 × 12 = 96 customers per hour
10 customers can get serves in every 5 minutes -> service rate μ = 10 × 12 = 120 customers per hour
Now, Waiting time in the queue = 96/ ((120)/ (120-96)) =2
 6. A Personal Computer factory works 5 days a week from 8:30 to 16:30 with a 30 minutes break for
lunch. 180 Personal Computers have to be produced in a week. the factory has to produce 1 Personal
Computer every ______ to deliver to the customer on time.?
A. 750 seconds
B. 800 seconds
C. 700 seconds
D. 850 seconds
Solution
Available Time:8 hours - 30 min (break) = 480 min – 30 min (break) = 450 min a day * 5 days = 2250
min
Customer's request = 180 Personal Computers
Takt-Time = 2250 / 180 = 12.5 min = 750 sec
The factory has to produce 1 Personal Computer every 12.5 minutes or 750 sec to deliver to the
customer on time.

7. Perkins Lighting wishes to employ a kanban in their new floor lamp production system. For the floor
lamp base, they have provided the following information:
Daily demand = 300 units
Holding cost = $20/unit/year
Order cost = $10/order
Lead time = 2 days
Safety stock = 600 units
The size of the kanban and the number of kanbans required is ______
A. 200,4
B. 300,4
C. 200,5
D. 340,6

Solution
Assume that the size of the kanban is the EOQ:

Kanban size = 300 units

8. A departmental store has a single cashier. During the rush hours, customers arrive at the rate of 15
customers per hour. The average number of customers that can be processed by the cashier is 18 per
hour. Assume that the conditions for the use of single-channel queuing model apply. What is the
average number of customers in the queue?
A. 3
B. 4
C. 5
D. 6
Solution:
Mean arrival rate 𝒂 = 𝟏𝟓
customers per hour Mean service rate 𝒔 = 𝟏𝟖 customers per hour.
Average number of customers in the queuing system 𝑵 = 𝒂 /(𝒔−𝒂) = 𝟏𝟓/ 𝟑 = 𝟓
9. A queue is formed when the demand for the service
A. Exceeds the capacity to provide that service
B. Is less than the capacity to provide that service
C. Is equal to the capacity to provide that service
D. There is no relation of service capacity and queue

10. Reduction of inventory is a key objective of logistics management

A. TRUE
B. FALSE