Page 2

1) Who initiated the scientific management revolution of the 3) Which of the following are the last two steps in the
early 1900s? problem-solving process?
a. George Dantzig I.Defining the problem
b. Russ Stanley II.Implementing the selected alternative
c. Frederic Taylor III.Evaluating the alternatives
d. Thomas Cook IV.Evaluating the results
V.Choosing an alternative
2) In what year did George Dantzig discover the most VI.Determining the criteria
significant advancement in the simplex method for linear a. I and III
programming problems? b. II and IV
a. 1947 c. III and V
b. 1950 d. IV and VI
c. 1953
d. 1948 Page 5
1) In problem solving and decision making, which step should
3) It is an approach to decision making based on the scientific you execute first?
method, and makes extensive use of quantitative analysis. a. Identify the alternatives
a. Operations Science b. Determine the criteria
b. Decision Science c. Choose an alternative
c. Scientific Method d. Define the problem
d. Management Science

Page 3
2) Which is the first step in analyzing a problem?
1) ____ can be defined as the process of identifying a
a. Evaluate the alternatives
difference between the actual and the desired state of affairs
b. Choose an alternative
and then taking action to resolve the difference.
c. Identify the alternatives
a. Problem
d. Define the Problem
b. Problem Solving
c. Alternative Solution
3) What step should you take after you have identified the
d. Solving Problem
alternatives?
a. Define the problem
2) It is the term generally associated with the first five steps of
b. Choose an alternative
the problem-solving process.
c. Determine the criteria
a. Problem Decision
d. Evaluate
b. Alternative Solutions
c. Decision
Page 6
d. Decision Making
1) It is based primarily on the manager’s judgment and
experience and includes the manager’s intuitive “feel” for the
3) What is the first step in the problem-solving process?
problem.
a. Choose an alternative
a. Quantitative approach
b. Evaluate the Alternative
b. Qualitative analysis
c. Identify and define the problem
c. Quantitative analysis
d. Determine the criterion or criteria that will be used to
d. Qualitative approach
evaluate the alternatives.

Page 4 2) If the manager has had little experience with similar

1) Problems in which the objective is to find the best solution problems, or if the problem is sufficiently complex, then this
with respect to one criterion are referred to as ________ can be used.
a. Single-criterion Decision Problems a. Quantitative approach
b. Decision-making Process b. Qualitative analysis
c. Multicriteria Decision Problems c. Quantitative analysis
d. Problem Solving d. Qualitative approach

2) Problems that involve more than one criterion are referred to 3) When using this approach, an analyst will concentrate on
as _________ the quantitative facts or data associated with the problem and
a. Single-criterion Decision Problems develop mathematical expressions that describe the
b. Decision-making Process objectives, constraints and other relationships that exist in the
c. Multicriteria Decision Problems problem.
d. Problem Solving a. Quantitative approach
 b. Indirect approach
c. Direct Approach Page 9
d. Qualitative approach 1) Controllable inputs are the decision alternatives specified by
the manager and thus are also referred to as the ________ of
Page 7 the model.
1) What is the essence of the quantitative analysis process? a. decision variables
a. The process of identifying the underlying problems b. output
b. The process of developing and solving models c. flowchart
c. The process of analyzing the quantitative data d. production capacity
gathered
d. The process of building and arriving at the result of 2) It is an input that is completely controlled or determined by
the analysis the decision maker.
a. non-controllable inputs
2) What are the 3 classifications of models in quantitative b. uncontrollable inputs
analysis? c. controllable inputs
a. Iconic Models, Analysis Models, Mathematical d. input process
Equation Models
b. Iconic Models, Analog Models, Mathematical Models 3) It can affect both the objective function and the constraints.
c. Icon Models, Analysis Models, Mathematical Equation a. controllable inputs
Models b. uncontrollable inputs
d. Icon Models, Analog Models, Mathematical Models c. mathematical model
d. environmental factors
3) Models are representations of real objects or situations and
can be presented in various forms. What is the purpose or Page 10
value of any model? 1) Another step in the quantitative analysis of a problem that
a. It captures the interest and attention of researchers ensures all uncontrollable inputs are specified before a model
and further motivates them to perform their analyses. is analyzed and before recommending a solution to a problem.
b. It enables us to make inferences about the real a. Data preparation
situation by studying and analyzing the model. b. Data presentation
c. It oversees the complete process of analyzing c. Data classification
quantitative data and maintains efficiency. d. Data specification
d. All of the above
2) What do you call a model wherein any of the uncontrollable
Page 8 inputs are uncertain to the decision maker.
1) Statement 1: In general, experimenting with models requires a. Database model
lead time and is less expensive than experimenting with the b. Deterministic model
real object or situation. c. Flat-file model
Statement 2: The value of model-based conclusions and d. Stochastic model
decisions is dependent on how well the model represents the
real situations. 3) The distinguishing feature of this model is that the
a. Both statements are incorrect uncontrollable input values are known in advance.
b. Both statements are correct a. Database model
c. Statement 1 is correct; Statement 2 is incorrect b. Deterministic model
d. Statement 1 is incorrect; Statement 2 is correct c. Flat-file model
d. Stochastic model
2) The success of the mathematical model and quantitative
approach will depend heavily on Page 11
a. maximization of profit or minimization of cost 1) The specific decision-variable value or values providing the
b. how optimal solution of the model is being used “best” output will be referred to as the ____.
c. how accurately the objective and constraints can be a. optimal decision
expressed b. optimal output
d. its capacity to find the specific objective of the c. optimal solution
problem d. decision output

3) A mathematical expression that describes the problem’s 2) Regardless of the objective function value, if a particular
objective is referred to as decision alternative does not satisfy one or more of the model
a. Objective Function constraints, the decision alternative is rejected as being ____.
b. Constraints Feasible
c. Analysis
Infeasible
d. Restrictions
both A & B
 none of the above Page 14
1) What do you call the cost that remains the same no matter
3) If all the constraints are satisfied, the decision alternative is how much is produced?
____ and a candidate for the “best” solution or recommended a. Variable Cost
decision. b. Fixed Cost
a. Infeasible c. Marginal Cost
b. optimal solution d. Total Cost
c. optimal decision
d. Feasible 2) Who developed cost and volume models?
a. Frederic W. Taylor
Page 12 b. Virginia Postrel
1) Although the _____ is often acceptable and can provide c. Timber Harvesting
valuable information for the manager, it has the drawbacks of d. Nowlin Plastics
not necessarily providing the best solution.
a. Trial and Error Process 3) What would be the total cost if the fixed cost is $2400, and
b. Decision-making Process its decision to produce 500 units?
c. Problem-Solving Process a. $2,900
d. Model Development b. $3,000
c. $3,400
2) Are frequently conducted with relatively small “test” d. 3,900
problems that have known or at least expected solutions.
a. Model Development and Model Solution Page 15
b. Model Testing and Model Solution 1) It is defined as the rate of exchange of total revenue
c. Model Testing and Validation a. Cost
d. Model Development and Model Testing b. Profit
c. Marginal Revenue
3) They have developed special solution procedures for many d. Marginal Rate
models that are much more efficient than the trial-and-error
process. 2) It is one of the most important criteria for management
a. Qualitative Analysts decision making.
b. Quantitative Analysts a. Profit
c. Manager b. Break-even Analysis
d. Management Scientist c. Gain
d. Average Cost
Page 13
1) Discuss the Heracles General Cement Company about the 3) The volume that results in total revenue equals total cost is
use of management science techniques to maximize the called
operations of the supply chain. a. Gain
a. The Management Science in Action b. Profit
b. Chain Management c. Break-even Point
c. Quantitative Analysis d. Average Cost
d. All of the above
Page 16
2) In 2005, the Heracles decided to improve the efficiency of its 1) The volume that results in total revenue equals total cost is
supply chain using mathematical programming by developing a called the ____________.
platform for. a. Breaking point
a. Supply Chain Organization and Planning (SCOP) b. Breakthrough point
b. Supply Chain Optimization and Planning (SCOP) c. Break Even point
c. Supply Chain Organization and Programming (SCOP) d. Linear programming
d. Supply Chain Optimization and Programming (SCOP)
2) A volume above the breakeven point will result in a ___,
whereas a volume below the breakeven point will result in a
3) Heracle's objectives in creating SCOP are the following
___.
except:
a. Profit; loss (respectively)
a. Improve efficiency through supply chain operations.
b. Loss; profit (respectively)
b. Integrate core business processes of planning and
c. Economic loss; economic profit (respectively)
budgeting with supply chain operations
d. Excess; Deficit (respectively)
c. Improved internal organizational decisions
d. Achieve system-wide cost reductions through global
3) Statement I: Excel can never be used to perform a
optimization
breakeven analysis.
Statement II: The breakeven point can be found by setting the b. Break Even Point
total profit c. Controllable inputs
expression equal to zero and solving for the production d. A and B
volume.
Statement III: The breakeven point can be found by setting the 2) The process of defining the problem, identifying the
total profit expression equal to one and solving for the alternatives, determining the criteria, evaluating the
production cost. alternatives , and choosing the alternative.
a. All statements are correct except statement 3 a. Decision
b. All statements are incorrect b. Decision Variable
c. All statements are correct except Statement 1 c. Decision Making
d. All statements are incorrect except Statement 2 d. Constraints

Page 17 3) I. The difference between the model and the situation or

1) It is a technique that can be used to predict future aspects of managerial problem it represents is an important point.
a business operation. II. One of the characteristics of management science that will
a. Simulation become increasingly apparent as we proceed through text is
b. Decision Analysis the search for the best solution to the problem.
c. Forecasting Method a. True False
d. Goal Programming b. True True
c. False True
2) It is an approach used for problems that can be set up as d. False False
linear programs, with the additional requirement that some or
all of the decision variables be integer values. Page 20
a. Analytic Hierarchy Process 1) The process of identifying a difference between the actual
b. Integer Linear Programming and the desired state of affairs and then taking action to
c. Linear Programming resolve the difference.
d. Nonlinear Programming a. Single-criterion decision problem
b. Problem Solving
3) Waiting-line is also known as c. Infeasible Solution
a. Queueing Models d. Optimal Solution
b. Project Scheduling
c. Simulation 2) The rate of change of the total cost with respect to volume.
d. Inventory Models a. Marginal Revenue
b. Mathematical Model
Page 18 c. Marginal Cost
1) This model is useful in studying the evolution of a certain d. Iconic Model
system over repeated trials.
a. Constraint function models 3) A decision alternative or solution that satisfies all
b. Mathematical programming models constraints.
c. Markov process models a. Deterministic Model
d. Linear programming models b. Multicriteria Decision Problem
c. Objective Function
2) It is the effective use of scarce resources under dynamic d. Feasible Solution
and uncertain conditions and is commonly used in the
healthcare industry. Page 31
a. Qualitative Research 1) It is a problem-solving approach developed to help
b. Management Research managers make decisions.
c. Quantitative Research a. Analytical Problem Solving
d. Operations Research b. Linear Programming
c. Six-Step Method
3) He stated that “ operations research is probably the most d. Kipling Method
important field nobody’s ever heard of”
a. Virginia Postrel 2) ___________ application/s of linear programming can be
b. Mark Eisner found in today's competitive business environment.
c. John Hopkins a. Numerous
d. Evelyn Hugo b. No
c. Few
Page 19 d. None of the above
1) The volume at which total revenue equals total cost.
a. Constraints 3) The following uses linear programming, except
 a. GE Capital
b. Marathon Oil Company 1) Determine the decision variables of the problem.
c. The Management Science in Action, Timber a. L = number of large bookcases built ; S = number of
Harvesting Model at MeadWestvaco Corporation small bookcases built
d. All of the above b. x = profit from a large bookcase ; y = profit from a
small bookcase
Page 32 c. L = number of hours to build large bookcase ; S =
1) The objective of linear programming problems is _____. number of hours to build small bookcase
a. Identifying the constraints d. xy = sizes of the bookcases made by Mang Ben
b. Graphing the inequalities
c. Maximizing or minimizing some quantity 2) What are the constraints in terms of the decision variables?
d. Making a profit a. 4L + 8S ≤ 24 ; L ≤ 2 ; S ≥ 5
b. 4L + 8S ≤ 24
2) What market has Par Inc.’s management decided to move c. L ≤ 2 ; S ≥ 5
into? d. 8L + 4S ≤ 24 ; L ≥ 2 ; S ≥ 5
a. The jewelry market
b. The medium- and high-priced golf bag market 3) Determine the objective in terms of the decision variables
c. The vegetarian fast food market using "Max" as an abbreviation for maximization.
d. The medium- and high-priced golf club market a. 100L + 40S
b. Max 100L + 40S
3) How many hours does Par Inc. have available for finishing c. Max = 8L + 4S
for the next three months? d. 8L + 4S
a. 708
b. 630 Page 35
c. 135 1) The constraints ensure that the solution to the problem will
d. 600 contain nonnegative values for the decision variables and are
thus referred to as the ___.
Page 33 a. Nonnegative Deterrents
1) What is the process of translating the verbal statement of a b. Nonnegative Constraints
problem into a mathematical statement? c. Nonnegativity Constraints
a. Mathematical equation d. None of the above
b. Problem formulation
c. Problem formation 2) Nonnegativity constraints are a general feature of all ______
d. Counter measure problems.
a. Linear equation
2) The following steps should be considered in problem b. Linear Programming
formulation except: c. Inclined Programming
a. Understand the Problem Thoroughly d. Linear Function
b. Describe the Objective
c. Describe each Constraint 3) What is the abbreviated form of nonnegativity constraints?
d. None of the given choices a. D, S ≥ 0
b. D, S ≤ 0
3) This is an art that can only be mastered with practice and c. S, D ≤ 0
experience. d. S, D ≥ 0
a. Understanding the Problem Thoroughly
b. Describing the Objectives Page 36
c. Formulating Models 1) The three assumptions necessary for a linear programming
d. Modeling model include all of the following, except;
a. Proportionality
Page 34 b. Rationality
Kindly read the problem and answer the following questions c. Divisibility
below: d. Additivity

Mang Ben produces two bookcases in small and large sizes. A 2) These are a special type of mathematical programming
large one takes eight hours to build, while a small one takes model in which the objective function and all constraint
four. A large bookcase generates a profit of Php100, while a functions are linear.
small bookcase generates a profit of Php40. Mang Ben can a. Program models
only work on bookcases for 24 hours a week, and he has to b. Constraint function models
produce at least 2 large and 5 small bookcases each week. c. Mathematical programming models
Find his maximum profit per week. d. Linear programming models
 2) If a solution point is not feasible for a particular constraint
3) Statement 1: Linear programming has nothing to do with then______?
computer programming. a. All solution points are feasible
Statement 2: The use of the word programming stated above b. Solution points in all sides of the constraint line is not
means “telling a computer how to perform a task”. feasible
a. Statement 1 is true, statement 2 is false c. All other solution points on the same side of the
b. Both statements are correct constraint line are not feasible
c. Both statements are incorrect d. Both A and C
d. Statement 1 is false, statement 2 is true
3) If a solution point is feasible for a particular constraint,
Page 37 then______?
1) How many decision variables can be solved using a a. All other solution points on the same side of that
graphical solution procedure? constraint line are feasible for that constraint.
a. 3 b. Some other solution points on the same side of that
b. 2 constraint line are feasible for that constraint.
c. 5 c. All other solution points on all side constraint line are
d. 4 feasible
e. d. None of the above
2) Every point on the graph is called
a. Solution point Page 40
b. Graphics point 1) It is a solution that can satisfy all the constraints.
c. Axis point a. feasible solutions
d. Display point b. constraint solutions
c. non-feasible solutions
3) We start by graphing the solution points satisfying the d. none of the above
constraint as an _____
a. Variables 2) It is any solution point on the boundary of the feasible region
b. Equation or within the feasible region.
c. Equality a. feasible solution
d. Axis b. non-feasible solution
c. feasible solution point
Page 38 d. non- feasible solution point
1) A graph line corresponding to the equation, this line, which
will be called cutting and dyeing ____ 3) All of the of the following are the four constraints
a. graphic line represented by the shaded regions, except:
b. constraint line a. sewing constraint
c. constant line b. feasible constraint
d. curved line c. finishing constraint
d. inspection and packaging constraint
2) A second point satisfying the equation is
a. (B = 400, D = 0) Page 41
b. (S = 0, D = 900) 1) We can start the optimizing step of the graphical solution
c. (A = 50, C = 100) procedure by _______.
d. (S = 900, D = 0) a. Plotting the points in the graph
b. Setting up the constraints
3) Which line indicates that it represents the cutting and dyeing c. Redrawing the feasible region on a separate graph
constraint line? d. Making the conclusion
a. D & E
b. A & B 2) One approach to finding the optimal solution would be to
c. C & D evaluate the objective function for each possible solution.
d. E & F Which of the statements are correct in connection with the
stated statement?
Page 39 I. The optimal solution would then be the one yielding the
1) In a linear programming problem, we need to identify the largest value.
solution points that_____? II. This approach is difficult because there is an infinite number
a. Satisfy all the constraints simultaneously of feasible solutions
b. Where the lines intersects III. The trial-and-error procedure cannot be used to identify the
c. Indicates the dyeing constraint by the faded region optimal solution
d. Has the same side of the constraint line a. I and II only
b. II and III only
 c. None of the above For B=5,400, C=5A+10,800
d. All of the above
B.
3) Read the following statements and choose the correct For B=1,200, C=5A+1,200
answer in the choices. For B=2,400, C=5A+2,400
Statement 1: We must select an arbitrary value for the profit For B=5,400, C=5A+5,400
contribution rather than trying to compute the profit contribution
for each feasible solution C.
Statement 2: We should not identify all the possible solutions For B=1,200, C=5A+5,400
that yield the selected value For B=2,400, C=5A+4,800
a. Statement 1 is True; Statement 2 is True For B=5,400, C=5A+1,200
b. Statement 1 is True; Statement 2 is False
c. Statement 1 is False; Statement 2 is False D.
d. Statement 1 is False; Statement 2 is True For B=1,200, C=5A+2,400
For B=2,400, C=5A+4,801
Page 42 For B=5,400, C=5A+10,080
1) A model that expresses what needs to be either maximized
or minimized, depending on the objective for the problem. Page 46
a. Objective Function 1) An important aspect of the graphical method is the ability to
b. Objective Cell a. graph lines
c. Objective Function Line b. graph lines showing the constraints and the objective
d. Optimal Solution function of the linear program
c. show data variables and trends very clearly
2) It is a problem with two decision variables, a line whose d. help to make predictions about the results of data not
points all have the same value of the objective function. yet recorded
a. Output Cell
b. Optimal Cell 2) All constraints and objective function lines in two-variable
c. Non Negative Constraint linear programs can be graphed if
d. Objective Function Line a. two points on the line can be identified
b. one point on the line can be identified
3) The geometric region that consists of all the possible c. three points on the line can be identified
solutions. d. two points on the line can be mistaken
a. Functional Constraint
b. Feasible Region 3. Suppose a company manufactures two models of a small
c. Graphical Method tablet computer: the Assistant (A) and the Professional (P).
d. Infeasible Solution Management needs 50 units of the Professional model for its
own salesforce, and expects sales of Professional to be at
Page 44 most one-half of the sales of the Assistant. What is the
1) Profit Lines are obtained as we move ____ from the origin. constraint enforcing this requirement?
a. Closer a. P – 50 ≤ ½A
b. Five feet apart b. A – 50 ≤ ¼P
c. Farther c. P – 50 ≥ ½A
d. 10 cm d. P – 50 ≤ ¼P

2) Statement 1: Profit lines are parallel. Page 47

Statement 2: Higher profit lines are farther from the origin 1) The following are examples of constraints, except.
Statement 3: Solutions outside the feasible region are a. 2P-A ≤ 100
unacceptable b. 2P-100≤A
a. All Statements are incorrect. c. R=T
b. All Statements are correct. d. R≥T
c. Only Statement 1 and 2 are correct.
d. Only the Third Statement is correct. 2) Consider a problem involving two decision variables, X and
Z. Suppose that the number of units X produced had to be at
3) Find the slope intercept equations for the profit lines by least equal to the number of units of Z produced. A constraint
substituting the profit contributions of: enforcing this requirement is.
B=1,200, B=2,400, and B=5,400 into equation C=5A + 2B. a. X≥Z
b. X-Z≥0
A. c. Both a and b
For B=1,200, C=5A+2,400 d. None of the above
For B=2,400, C=5A+4,800
3) A company manufactures a pillowcase with two different
designs: the Plain(P) and Minimalist(M). Suppose that the
number of pillow cases with plain design had to be at least
equal to the number of pillowcase with minimalist design
produced. A constraint enforcing this requirement is.
a. M≥P
b. P≥T
c. P=M
d. P≥M