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Full download Test Bank for An Introduction to Management Science: Quantitative Approach, 15th Edition, David R. Anderson, ISBN-10: 133740652X, ISBN-13: 9781337406529 file pdf all chapter on 2024
Full download Test Bank for An Introduction to Management Science: Quantitative Approach, 15th Edition, David R. Anderson, ISBN-10: 133740652X, ISBN-13: 9781337406529 file pdf all chapter on 2024
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True / False
1. The process of decision making is more limited than that of problem solving.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.1 Problem Solving and Decision Making
KEYWORDS: Bloom's: Understand
2. The breakeven point is the point at which the volume of output produced is the result of total revenue equaling total
cost.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.4 Models of Cost, Revenue, and Profit
KEYWORDS: Bloom's: Understand
3. Problem solving encompasses both the identification of a problem and the action to resolve it.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.1 Problem Solving and Decision Making
KEYWORDS: Bloom's: Remember
© Cengage. Testing Powered by Cognero. Page 1
CH 01 - Introduction
4. The decision-making process includes implementation and subsequent evaluation of the decision.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.1 Problem Solving and Decision Making
KEYWORDS: Bloom's: Understand
5. Most successful quantitative analysis models will advise separating the management analyst from the managerial team
until after the problem has been fully structured.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Understand
6. The value of making a decision based on models is dependent on how closely the model represents the real situation.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Understand
8. The feasible solution is the best solution possible for a mathematical model.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Understand
9. Frederic W. Taylor is credited with providing the foundation for quantitative methodology in the early part of the 20th
century.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.1 Problem Solving and Decision Making
KEYWORDS: Bloom's: Remember
10. To identify the choice that provides the highest profit and also uses the fewest employees, we apply a single-criterion
decision process.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.1 Problem Solving and Decision Making
KEYWORDS: Bloom's: Understand
11. The most critical component in determining the success or failure of any quantitative approach to decision making is
problem definition.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
© Cengage. Testing Powered by Cognero. Page 3
CH 01 - Introduction
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Remember
12. The first step in the decision-making process is to identify the problem.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.1 Problem Solving and Decision Making
KEYWORDS: Bloom's: Remember
13. All uncontrollable inputs or data must be specified before we can analyze the model and recommend a decision or
solution for the problem.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Understand
14. If you are deciding to buy either machine A, B, or C with the objective of minimizing the sum of labor, material and
utility costs, you are dealing with a single-criterion decision.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.1 Problem Solving and Decision Making
KEYWORDS: Bloom's: Understand
15. Model development should be left to quantitative analysts; the model user's involvement should begin at the
implementation stage.
a. True
b. False
ANSWER: False
POINTS: 1
© Cengage. Testing Powered by Cognero. Page 4
CH 01 - Introduction
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.1 Problem Solving and Decision Making
KEYWORDS: Bloom's: Understand
16. A feasible solution is one that satisfies at least one of the constraints in the problem.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Understand
17. A toy train layout designed to represent an actual railyard is an example of an analog model.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Remember
18. The last step in any problem-solving process is to choose the correct alternative among those available.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.1 Problem Solving and Decision Making
KEYWORDS: Bloom's: Understand
19. Decision variables in a production process are those that cannot be controlled by the manager.
a. True
b. False
ANSWER: False
POINTS: 1
20. The optimal solution to a model is one in which known, specific values provide the best output.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Understand
21. If all the uncontrollable inputs into the decision-making process are known to the decision maker, the model of
decision making is known as "stochastic."
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Remember
Multiple Choice
28. A thermometer is an example of a model that does not have the same physical appearance as that which is being
modeled; thus, it is a(n)
a. analog model.
b. iconic model.
c. mathematical model.
d. qualitative model.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Understand
30. When the value of the output cannot be determined even if the value of the controllable input is known, the model is
a. analog.
b. digital.
c. stochastic.
d. deterministic.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Understand
31. The volume that results in total revenue being equal to total cost is known as the
a. breakeven point.
b. marginal volume.
c. marginal cost.
d. profit mix.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.4 Models of Cost, Revenue, and Profit
KEYWORDS: Bloom's: Remember
33. George Dantzig is important in the history of management science because he developed
a. the scientific management revolution.
36. A model that uses a system of symbols or expressions to represent a problem is called a(n) ______ model.
a. mathematical
b. iconic
c. analog
d. constrained
ANSWER: a
POINTS: 1
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CH 01 - Introduction
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Understand
37. Which of the following is NOT one of the commonly used names for the body of knowledge involving quantitative
approaches to decision making?
a. management science
b. business analytics
c. operations research
d. efficiency studies
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: IMS.ASWC.19.01.01 - 1.1
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.1 Problem Solving and Decision Making
KEYWORDS: Bloom's: Remember
38. A valid reason for using a quantitative approach to the decision-making process is when
a. the problem is repetitive, necessitating routine decision making.
b. the problem is unique and the manager has no prior experience solving this sort of problem.
c. the problem is particularly complex.
d. All of these are correct.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.01.02 - 1.2
NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking
TOPICS: 1.2 Quantitative Analysis and Decision Making
KEYWORDS: Bloom's: Understand
39. A snack food manufacturer buys corn for tortilla chips from two cooperatives, one in Iowa and one in Illinois. The
price per unit of the Iowa corn is $6.00 and the price per unit of the Illinois corn is $5.50.
a. Define variables that would tell how many units to purchase from each source.
b. Develop an objective function that would minimize the total cost.
The manufacturer needs at least 12,000 units of corn. The Iowa cooperative can supply up to
c. 8000 units, and the Illinois cooperative can supply at least 6000 units. Develop constraints
for these conditions.
ANSWER:
a. Let x1 = the number of units from Iowa
Let x2 = the number of units from Illinois
© Cengage. Testing Powered by Cognero. Page 11
CH 01 - Introduction
b. Min 6x1 + 5.5x2
c. x1 + x 2 ≥ 12,000
x1 ≥ 8000
x1 ≥ 6000
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Apply
40. The relationship d = 5000 − 25p describes what happens to demand (d) as price (p) varies. Here, price can vary
between $10 and $50.
a. How many units can be sold at the $10 price? How many can be sold at the $50 price?
b. Model the expression for total revenue.
Consider prices of $20, $30, and $40. Which of these three price alternatives will maximize
c.
total revenue? What are the values for demand and revenue at this price?
ANSWER:
a. For p = 10, d = 4750
For p = 50, d = 3750
b. TR = p(5000 − 25p)
c. For p = 20, d = 4500, TR = $90,000
For p = 30, d = 4250, TR = $127,500
For p = 40, d = 4000, TR = $160,000 (maximum total revenue)
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Apply
41. There is a fixed cost of $50,000 to start a production process. Once the process has begun, the variable cost per unit is
$25. The revenue per unit is projected to be $45.
a. Write an expression for total cost.
b. Write an expression for total revenue.
c. Write an expression for total profit.
d. Find the breakeven point.
ANSWER:
a. C(x) = 50000 + 25x
b. R(x) = 45x
c. P(x) = 45x − (50000 + 25x)
d. x = 2500
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
42. An author has received an advance against royalties of $10,000. The royalty rate is $1.00 for every book sold in the
United States, and $1.35 for every book sold outside the United States. Define variables for this problem and write an
expression that could be used to calculate the number of books to be sold to cover the advance.
ANSWER: Let x1 = the number of books sold in the U.S.
Let x2 = the number of books sold outside the U.S.
10000 = 1x1 + 1.35x2
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 1.4 Models of Cost, Revenue, and Profit
KEYWORDS: Bloom's: Apply
43. A university schedules summer school courses based on anticipated enrollment. The cost for faculty compensation,
laboratories, student services, and allocated overhead for a computer class is $8500. If students pay $920 to enroll in the
course, how large would enrollment have to be for the university to break even?
ANSWER: Enrollment would need to be 10 students.
POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 1.4 Models of Cost, Revenue, and Profit
KEYWORDS: Bloom's: Evaluate
44. As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a bed-and-breakfast
operation, the prospective owners have projected:
Monthly fixed cost (loan payment, taxes, insurance, maintenance) $6000
Variable cost per occupied room per night 20
Revenue per occupied room per night 75
a. Write the expression for total cost per month. Assume 30 days per month.
b. Write the expression for total revenue per month.
c. If there are 12 guest rooms available, can they break even? What percentage of rooms would
need to be occupied, on average, to break even?
ANSWER:
a. C(x) = 6000 + 20(30)x (monthly)
b. R(x) = 75(30)x (monthly)
Breakeven occupancy = 3.64 or 4 occupied rooms per night, so they have enough rooms
c.
to breakeven. This would be a 33% occupancy rate.
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4
© Cengage. Testing Powered by Cognero. Page 13
CH 01 - Introduction
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 1.4 Models of Cost, Revenue, and Profit
KEYWORDS: Blooms': Apply
45. Organizers of an Internet training session will charge participants $150 to attend. It costs $3000 to reserve the room,
hire the instructor, bring in the equipment, and advertise. Assume it costs $25 per student for the organizers to provide the
course materials.
a. How many students would have to attend for the company to break even?
If the trainers think, realistically, that 20 people will attend, then what price should be
b.
charged per person for the organization to break even?
ANSWER:
a. C(x) = 3000 + 25x
R(x) = 150x
Breakeven students = 24
b. Cost = 3000 + 25(20)
Revenue = 20p
Breakeven price = $175
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 1.4 Models of Cost, Revenue, and Profit
KEYWORDS: Bloom's: Apply
46. In this portion of an Excel spreadsheet, the user has given values for selling price, the costs, and a sample volume.
Give the cell formula for
a. cell E12, breakeven volume.
b. cell E16, total revenue.
c. cell E17, total cost.
d. cell E19, profit (loss).
A B C D E
1
2
3
4 Breakeven calculation
5
6 Selling price per unit 10
7
8 Costs
9 Fix cost 8400
10 Variable cost per unit 4.5
11
12 Breakeven volume
13
14 Sample calculation
15 Volume 2000
16 Total revenue
17 Total cost
18
© Cengage. Testing Powered by Cognero. Page 14
CH 01 - Introduction
19 Profit (loss)
ANSWER:
a. =E9/(E6-E10)
b. =E15*E6
c. =E9+E10*E15
d. =E16-E17
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.01.05 - 1.5
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 1.5 Management Science Techniques
KEYWORDS: Bloom's: Apply
47. A furniture store has set aside 800 square feet to display its sofas and chairs. Each sofa utilizes 50 sq. ft. and each
chair utilizes 30 sq. ft. At least five sofas and at least five chairs are to be displayed.
a. Write a mathematical model representing the store's constraints.
Suppose the profit on sofas is $200 and on chairs is $100. On a given day, the probability
b. that a displayed sofa will be sold is .03 and that a displayed chair will be sold is .05.
Mathematically model each of the following objectives:
1. Maximize the total pieces of furniture displayed.
2. Maximize the total expected number of daily sales.
3. Maximize the total expected daily profit.
ANSWER:
a. 50s + 30c ≤ 800
s≥5
c≥5
b. (1) Max s + c
(2) Max .03s + .05c
(3) Max 6s + 5c
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Apply
48. A manufacturer makes two products, doors and windows. Each must be processed through two work areas. Work area
#1 has 60 hours of available production time per week. Work area #2 has 48 hours of available production time per week.
Manufacturing of a door requires 4 hours in work area #1 and 2 hours in work area #2. Manufacturing of a window
requires 2 hours in work area #1 and 4 hours in work area #2. Profit is $8 per door and $6 per window.
a. Define decision variables that will tell how many units to build (doors and windows) per
week.
b. Develop an objective function that will maximize total profit per week.
c. Develop production constraints for work area #1 and #2.
ANSWER:
a. Let D = the number of doors to build per week
Let N = the number of windows to build per week
b. Weekly Profit = 8D + 6W
c. 4D + 2W ≤ 60
49. A firm builds and sells small, ergonomic conference tables. The investment in plant and equipment is $165,000. The
variable cost per table is $1,500. The selling price of each table is $3,000. How many tables would have to be sold for the
firm to break even?
50. A computer rework center has the capacity to rework 300 computers per day. The expected number of computers
needing to be reworked per day is 225. The center is paid $26 for each computer reworked. The fixed cost of renting the
reworking equipment is $250 per day. Work space rents for $150 per day. The cost of material is $18 per computer and
labor costs $3 per computer. What is the breakeven number of computers reworked per day?
ANSWER: 80 computers
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 1.4 Models of Cost, Revenue, and Profit
KEYWORDS: Bloom's: Evaluate
51. To establish a driver education school, organizers must decide how many cars, instructors, and students to have. Costs
are estimated as follows. Annual fixed costs to operate the school are $30,000. The annual cost per car is $3000. The
annual cost per instructor is $11,000 and one instructor is needed for each car. Tuition for each student is $350. Let x be
the number of cars and y be the number of students.
a. Write an expression for total cost.
b. Write an expression for total revenue.
c. Write an expression for total profit.
d. The school offers the course eight times each year. Each time the course is offered, there are
two sessions. If they decide to operate five cars, and if four students can be assigned to each
car, will they break even?
ANSWER:
a. C(x) = 30000 + 14000x
b. R(y) = 350y
c. P(x,y) = 350y − (30000 + 14000x)
d. Each car/instructor can serve up to (4 students/session)(2 sessions/course)(8
courses/year) = 64 students annually. Five cars can serve 320 students. If the classes are
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CH 01 - Introduction
filled, then profit for five cars is 350(320) − (30000 + 14000(5)) = 12000. So, the school
can reach the breakeven point.
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 1.4 Models of Cost, Revenue, and Profit
KEYWORDS: Bloom's: Apply
52. Zipco Printing operates a shop that has five printing machines. The machines differ in their capacities to perform
various printing operations due to differences in the machines' designs and operator skill levels. At the start of the
workday there are five printing jobs to schedule. The manager must decide what the job-machine assignments should be.
a. How could a quantitative approach to decision making be used to solve this problem?
b. What would be the uncontrollable inputs for which data must be collected?
Define the decision variables, objective function, and constraints to appear in the
c.
mathematical model.
d. Is the model deterministic or stochastic?
e. Suggest some simplifying assumptions for this problem.
ANSWER:
a. A quantitative approach to decision making can provide a systematic way for deciding
the job-machine pairings so that total job processing time is minimized.
b. How long it takes to process each job on each machine, and any job-machine pairings
that are unacceptable.
c. Decision variables: one for each job-machine pairing, taking on a value of 1 if the
pairing is used and 0 otherwise.
Objective function: minimize total job processing time.
Constraints: each job is assigned to exactly one machine, and each machine be assigned
no more than one job.
d. Stochastic: job processing times vary due to varying machine set-up times, variable
operator performance, and more.
e. Assume that processing times are deterministic (known/fixed).
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.01.03 - 1.3
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 1.3 Quantitative Analysis
KEYWORDS: Bloom's: Evaluate
53. Consider a department store that must make weekly shipments of a certain product from two different warehouses to
four different stores.
a. How could a quantitative approach to decision making be used to solve this problem?
b. What would be the uncontrollable inputs for which data must be gathered?
What would be the decision variables of the mathematical model? the objective function? the
c.
constraints?
d. Is the model deterministic or stochastic?
e. Suggest assumptions that could be made to simplify the model.
ANSWER:
A quantitative approach to decision making can provide a systematic way to determine a
a.
minimum shipping cost from the warehouses to the stores.
54. Three production processes—A, B, and C—have the following cost structure:
ANSWER:
a. C(x) = FC + VC(x)
Process A: C(x) = $120,000 + $3.00(8,000) = $144,000 per year
Process B: C(x) = $ 90,000 + $4.00(8,000) = $122,000 per year
Process C: C(x) = $ 80,000 + $4.50(8,000) = $116,000 per year
Process C has the lowest annual cost for a production volume of 8,000 units.
b. Q = (profit + FC)/(price - VC)
Process A: Q = ($50,000 + $120,000)/($6.95 - $3.00) = 43,038 units
Process B: Q = ($50,000 + $ 90,000)/($6.95 - $4.00) = 47,458 units
Process C: Q = ($50,000 + $ 80,000)/($6.95 - $4.50) = 53,062 units
Process A requires the lowest production volume for an annual profit of $50,000.
c. At breakeven, profit (the pretax profits per period) is equal to zero.
Q = FC/(price - VC)
Process A: Q = $120,000/ ($6.95 - $3.00) = 30,380 units
Process B: Q = $ 90,000/ ($6.95 - $4.00) = 30,509 units
Process C: Q = $ 80,000/ ($6.95 - $4.50) = 32,654 units
Process A has the lowest breakeven quantity, while Process B’s is almost as low.
POINTS: 1
55. Jane Persico, facility engineer at the El Paso plant of Computer Products Corporation (CPC), is studying a process
selection decision at the plant. A new printer is to be manufactured and she must decide whether the printer will be auto-
assembled or manually assembled. The decision is complicated by the fact that annual production volume is expected to
increase by almost 50% over three years. Jane has developed these estimates for two alternatives for the printer assembly
process:
Auto- Manual
Assembly Assembly
Process Process
Annual fixed cost $690,000 $269,000
Variable cost per product $29.56 $31.69
Estimated annual production
(in number of products): Year 1 152,000 152,000
Year 2 190,000 190,000
Year 3 225,000 225,000
ANSWER:
a. C(x) = fixed cost + variable cost(x)
Year 1:
CA = 690,000 + 29.56(152,000) = $5,183,120
CM = 269,000 + 31.69(152,000) = $5,085,880 (least-cost alternative)
Year 2:
CA = 690,000 + 29.56(190,000) = $6,306,400
CM = 269,000 + 31.69(190,000) = $6,290,100 (least-cost alternative)
Year 3:
CA = 690,000 + 29.56(225,000) = $7,341,000 (least-cost alternative)
CM = 269,000 + 31.69(225,000) = $7,399,250
b. CA = CM
FCA + vA(190,000) = FCM + vM(190,000)
690,000 + v(190,000) = 269,000 + 31.69(190,000)
vA = (269,000 + 6,021,100 - 690,000)/190,000
vA = $29.47 (roughly a 0.3% reduction)
POINTS: 1
DIFFICULTY: Challenging
LEARNING OBJECTIVES: IMS.ASWC.19.01.04 - 1.4
© Cengage. Testing Powered by Cognero. Page 19
CH 01 - Introduction
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: 1.4 Models of Cost, Revenue, and Profit
KEYWORDS: Bloom's: Analyze
'Jilted—eh?'
'Nay, I was never on such a footing with her that she could treat me so,
because she was ever utterly indifferent.'
'Then it is too late for fair means now, but not for foul.'
'If money is your object, and you openly avow that it is so, why not
propose to the mother, if the daughter won't have you? She is rich enough
and certainly handsome enough, and only some fifteen years older than
yourself. She is a widow, and all the world knows how easily widows are
won. 'Sblood! cut in for her, and leave the girl to the Scot.'
'Right!' exclaimed the other; 'I like this spirit—give me your hand.'
'This infernal Scots Brigade has married at the Hague and Amsterdam
more than fifty Dutch girls within the last few years, and all of them rich.'
'Der Duyvel!'
'Is it not enough that these Scots—the Bulwark of the Republic as they
boast themselves——'
'And have done so since the old siege of Bois-le-Duc—well?' asked the
Heer.
'Is it not enough, I say, that they should assume our glory in war, and
win our guilders in peace, but they must carry off our prettiest girls too?'
'They do not assume your glory, but win their own,' said the Heer, who
had some contempt for his companion; 'their guilders have been hardly won
on many a Dutch and Flemish battlefield; and if the pretty girls of Haarlem
and the Hague prefer them to Walloons, they are right.'
'I did not say so,' said Van Schrekhorn; then he added, 'I have some
news for you, and a hint to make thereon. Dolores van Renslaer is to be at
the ridotto given by the wife of the Sixe van Otterbeck, the Minister of
State, on the night after next.'
'That I know, and of course this pestilent Scot will be there too.'
'Listen,' said Van Schrekhorn, leaning forward on the table and lowering
his voice almost to a whisper, while the colour in his bloated visage
deepened, and an expression of intense cunning stole into his watery
bloodshot eyes: 'let us carry her off as her sedan bears her from the ridotto!'
'To where?'
'Listen. I know a skipper whose ship is now in the Maese, and almost
ready to sail for the coast of France. She is anchored off Maesluis now; let
us once get her on board and the Hoek van Holland will soon be left astern,
and the girl your own, unless you are a greater fool than I think you.'
'The distance from the Hague to Maesluis is only eleven miles—a few
pipes, as the people say,' resumed Schrekhorn; 'my friend shall have a boat
waiting us at a quiet spot among the willows that fringe the shore, near a
deserted windmill on the river-bank; and then we shall take her on board.
Once under hatches, her fate will soon be sealed.'
'By refunding what you owe me out of the guilders of Dolores,' replied
the Heer, as he and Morganstjern shook hands again; but the latter became
silent for a time.
But this grave suspicion was only a passing thought, and he thrust it
aside.
'This may preclude your return for some time, and compromise you
with the authorities,' said the Heer.
'Their reign will soon be over; and when a French army comes to the
assistance of the Dutch patriots, the Prince of Orange may find himself a
fugitive in England.'
'But we must be wary; not for all the gold and silver bars in the Bank of
Amsterdam would I be in your shoes if we fail. The Burgomasters are
worse than the devil to face, and we may find ourselves behind the grilles of
the Gevangepoort or the Rasp-haus, as brawlers.'
CHAPTER VII.
Lewie took off his Khevenhüller hat, and fearing that some
animadversions were coming, played a little irresolutely with its upright
scarlet feather.
'Your name has gone in for foreign service, Lewie,' said the General.
'You might at least have consulted with me in this matter. How cruel of
you, uncle, under all the circumstances!' exclaimed Lewie, with sudden
bitterness and intense anger.
'You will come to think it kindness in time, boy; I seek but to save you
from what I, in my time, underwent.'
'Refuse, and compromise your honour and mine—yea, the honour of the
Brigade itself! My dear Lewie, when you have lived in this world as long as
I——'
'If detailed for the Colonies, anywhere, separation from Dolores will be
the death of me!' exclaimed the young man passionately.
'No, it won't; nor of Dolores either. So you are very much in love with
her?' asked the General with a scornful grin.
'God only knows how purely I love her!' exclaimed the nephew in a low
concentrated voice.
'How?'
'She has varied the annals of the old fighting line of the Baronalds of
that Ilk, by having them varied by something else.'
'By what?'
'Poor fool that you are, Lewie! Do you forget the adage, "Out of sight,
out of mind"? You think that, like Penelope, she will wait your return in
hope, in love, and all the rest of it? You may be like Ulysses, but never was
there a Penelope among women.'
How hard, how cruel, that they should be thus separated, and forced to
drink, as it were, of the bitter waters of Marah, because this stern soldier
hated all women so grotesquely, as the Countess had said, viewing them all
through the medium of one; while Lewie and Dolores were so young that
all the world seemed too small to contain the measure of their joy, and now
—now, thought was maddening!
He would resign, 'throw up his pair of colours,' as the phrase was then;
but his uncle had compromised him, by sending in his name to the Director-
General of Infantry!
It was too bad—too bad; he owed his uncle much—all in the world
indeed; but this stroke—this harsh interference, ended all between them for
ever!
'It may have been that evil followed me,' said the General, looking
down, with a hand placed in the breast of his coat.
'Yes. When a boy I shot in the wood of Thomineau the last crane that
was ever seen in Scotland, and my old nurse predicted that a curse would
follow me therefor; thus, I never see a crane on a house-top here that I don't
remember her words. Now listen to what happened to me when I was on
detachment in the Dutch West India Islands. I belonged then to the battalion
of Charles Halkett Craigie, who six years ago died Lieutenant-Governor of
Namur, and we garrisoned Fort Nassau, or New Amsterdam as it is called
now. There,' continued the General, alternately and nervously toying with
his sword-knot and shirt-frill, 'I was silly enough to fall in love with the
daughter of a wealthy merchant, a Dutch girl, like your Dolores, with some
of the old Castilian blood in her, though a lineal descendant of the great
Dutch family of Van Peere, to whom, in 1678, Berbice was granted by the
States-General as a perpetual and hereditary fief. She possessed great
beauty, and what proved more attractive still, a hundred sweet and winning
ways, with the art of saying pretty and even daring little things, that
endeared her to all—to none more than me. I was a great ass, of course; but,
heavens, what a coquette she was!'
'What was her name?' asked Lewie, with just the smallest amount of
interest.
'I had her hand in mine: my secret was trembling on my lips; and gazing
into her eyes which were of a golden-brown colour, like that of her hair, I
said very softly:
'"If your eyes have at all times an expression so sweet, so beautiful and
winning, what must they seem to the man who reads love in them—love for
himself!"
'"Can you not read it now?" she asked in a low voice, as she cast her
long lashes down.
'I uttered her name and drew her close to me, my heart beating wildly
the while, in doubt whether this was one of the daring little speeches I
spoke of.
'Taking her sweet little face between my hands, I kissed her eyes and
forehead, on which she said, in her low cooing voice:
'"I wonder if you will ever think of me after you are gone?"
'"Darling, do you think there will ever be a day of my life when I will
not think you! Oh, the thought of our parting is worse than death to me!"
'"There is no need to tell you that I love you," said I, "for you know that
I do—dearly, fondly: that this love will last with life, end with death;" and
much more rubbish I said to the same purpose, adding, "And you, if quite
free, could you love me?"
'So it all came about in that way,' said the General; 'umph—what an ass
I was! May you never live to be deceived as that girl deceived me! I thought
our passion was mutual; and then perhaps she thought so too—all
perfidious though she was!
'But how happy—how radiantly happy I was for a time, till a Dutch
squadron came to anchor off the bar of the Berbice river, and in one of the
lieutenants thereof she discovered, or said she discovered, a kinsman; and
from that moment a blight fell upon me, and I discovered that she was
variable as the wind. Her attentions seemed divided for a time; at last they
were no longer given to me. Her smiles were for the stranger; she sang to
him, played to him, and talked to him only. At home or abroad, riding or
driving, or boating on the river, he was ever by her side when not on board
his ship.
'What rage and mortification were in my heart! The rules of the service
alone prevented me calling him to a terrible account, though indeed he was
not to blame.
'When I attempted to reason or remonstrate with her, she laughed; then
after a time became indignant. We parted in anger, and I felt fury and death
in my heart when she tossed my engagement-ring at my feet.
'Once again we met, alone, and by the merest chance. How my pulses
throbbed as our eyes met, and she coyly presented her hand, which I was
craven enough, and fool enough, to fondle!
'"Oh, what have I done," said I, "that you should treat me thus? that you
should tread my heart under your feet, and leave me to long years of sorrow
and repining?"
'Then she laughed, and snatched her hand away, while once again my
soul seemed to die within me.
'"Do you love this kinsman?" I asked her fiercely; and never till my last
hour shall I forget her reply, or the almost cruel expression of her face.
'"Yes; I love him—love him with my whole heart, and as I never loved
you!"
'Turning away, she left me—left me rooted to the spot. Yet she had
some shame, or compunction, left in her after all; for next day came a
would-be piteous letter of explanation, that she had given this lieutenant a
promise to please her father when he was dying—her father who was his
guardian; how she had never had the courage to tell me so at first; that she
did not dream I loved her so much; that I must learn to forget her, though
she would never forget me; and so—a thousand devils!—there was an end
of it.
'A few weeks after I saw her marriage in the papers, to the Lieutenant—
d—n his name—to her and her fortune of ever so many thousand guilders.
'I tore her farewell letter into minute fragments, and set to work to adopt
her advice.'
'Ah, you know not her of whom you speak thus!' exclaimed Lewie.
'Nor am I likely to do so. Shun her, nephew! a girl, doubtless, with a fair
face, and a heart as black as Gehenna! Be firm, Lewie Baronald!—firmness
is a great thing, as you will find when you come to be a general officer and
as old as I am.'
Lewie had done his duty like a man and a soldier—like one worthy of
the glorious old Brigade—among the savages in the old Cape War; but it
was cruel, absurd, and, to use the Countess van Renslaer's phrase,
'grotesque,' that he should now be treated like a child, and in the most
momentous matter of his life and happiness too!
'I was weak enough—idiot enough, to wish I might die, then and there,
when that girl deceived me,' resumed his uncle bitterly; 'but I knew that I
must live on and on; I was very young, and thought I might live for forty
years with that pain in my heart at night and in the morning. It is twenty
years since then, and though the pain is dead, I suppose, I cannot laugh at it
yet, or the memory of Mercedes.'
'So that is the name which is not to go down in the annals of the family?'
'Precisely so.'
'But surely, dear uncle, after all these years, you must have forgiven
her? Besides, she may be dead.'
'Dead to me, certainly! Forgiven her—well, perhaps I may have
forgiven her; but what can make a mere mortal forget a wrong, a cruelty, or
an injury?'
'Then you will not yield, but insist that I shall go abroad?'
'I will not yield an inch, and march you shall!' replied the General, as he
turned on his heel and left him.
'My darling Dolores—the first and only love of my life!' exclaimed the
young man passionately; 'how can he—how dare he—act thus towards us?
But that I love him, I think, I may soon come to hate him!'
He rushed away in search of Dolores; but she and the Countess were
from home. He was on duty at the Palace next day, and Dolores was to be at
the ridotto; thus, ere they could meet, events were to transpire which were
altogether beyond the conception of both.
CHAPTER VIII.
THE RIDOTTO.
A band of the Dutch Guards furnished music on the lawn, and there
dancing was in progress in the bright sunshine of the summer afternoon;
and, in the fashion of the time, many of the guests were arrayed in what
they deemed the costume of Arcadian shepherds and shepherdesses.
People danced early in the evenings of the eighteenth century, and were
abed about the time their descendants now begin to dress for a ball. Ices
were unknown; no wine was dispensed, but the liveried servants of the
Heervan Otterbeck regaled his guests on coffee, green tea, orange tea, and
many kinds of cakes and confectionery in the intervals of the dancing, in
which Dolores (all innocent and unaware of the plots in progress against her
peace, even her honour and liberty—one of them born of avarice, wounded
vanity, and foiled desire) indulged joyously and with all her heart.
For the information of the ladies of the present day we shall detail the
dress worn by Dolores on that evening as described in the Hague Gazette,
and they may imagine how charming she looked:
'Her body and train were silver tissue, with a broad silver fringe; her
petticoat was white satin covered with the richest crape, embroidered with
silver, fastened up with bunches of silver roses, tassels, and cords. Her
pocket-holes were blonde, her stockings were blue, clocked with silver, and
her hair was twisted and plaited in the most beautiful manner around a
diamond comb.'
Seated under a tree, flushed with a recent dance, she was alternately
playing with her fan and silver pomander ball, with a crowd of admirers
about her, and looking alike pure and bright, with 'a skin as though she had
been dieted on milk and roses.'
'No wonder it is, perhaps, that Lewie loves me,' thought the girl, as she
looked at the reflection of her own sweet face in a little bit of oval mirror in
the back of her huge Dutch fan; 'I am pretty!'
She might have said 'lovely,' and more than lovely; and then she smiled
consciously at her own vanity.
Under the genial influence of her surroundings the heart of the girl was
full of happiness, and had but one regret that Lewie Baronald was not there.
Yet, she thought, 'to-morrow I shall see him—to-morrow be with my
darling, who at this moment is thinking of me.'
And amid the brilliance of the scene, so rich in the variety of colour and
costume, the strains of the music and beauty of the old Dutch pleasure-
grounds, she almost longed to be alone, with the grass, the birds, the
insects, and the flowers—alone in the sweet summer evening with the
perfume of the roses, the jasmine, and the glorious honeysuckle around her.
On one hand, about a mile distant, was the Hague, with all its Gothic
spires and pointed gables; on the other spread the landscape so usual in that
country of cheese and butter—church-towers and wind-mills, bright
farmhouses, long rows of willow-trees, their green foliage ruffling up white
in the passing breeze; the grassy dykes and embankments, a long continuity
of horizontal lines, which seemed so tame and insipid to the mountaineers
of the Scots Brigade, and to all but the Dutch themselves.
Among the groups around her, Dolores, as usual now, heard the growing
political quarrel between Great Britain and Holland openly and freely
discussed, together with the consequent and too probable departure of the
Scots Brigade from the latter for ever. That seemed almost a settled thing—
a certainty, if the quarrel became an open one, and the probabilities wrung
the girl's affectionate heart.
How would all this affect her lover and herself? Alas! she knew not that
the doom of the former for foreign service was nearly a fixed thing now!
And she was fated to receive her first mental shock that evening, all
unwittingly, from the Earl of Drumlanrig, who drew near her, and with the
stately manner of the time lifted his hat with one hand, and with the other
touched her hand as he bowed over it.
The golden light of the setting sun fell full upon her hair, flecking its
bronze with glorious tints, and giving her beauty a brilliance that, to the
Earl's appreciative eye, was very striking.
'Three?'
'True; but I am too old to use any of these now,' said the Earl, shaking
his powdered head.
'Your Scottish eyes cannot forgive that,' said Dolores laughing, as she
recalled some of Lewie Baronald's complaints on the same subject; 'but
people cannot live on scenery.'
'He visits us,' replied Dolores, the flower-like tints of her sweet face
growing brighter as the Earl spoke.
'He is a fine and handsome fellow, young Baronald; but it is strange that
he should wish to quit the Hague when it possesses such peculiar
attractions,' said the Earl markedly, and with a courteous bow.
'Quit the Hague!' repeated Dolores, as if she had not heard him aright.
'I do not know whether the desire to do so, has any connection with his
uncle's scheme for the recapture or restitution to Holland of the Island of
Goree, off the coast of Senegal, in defiance of the old Treaty of Nimeguen,
which gave it to France, a scheme which will win him the favour of their
Mightinesses; but young Baronald's name was sent, through me this
morning, to the Director-General of Infantry, for instant foreign service.'
'No mistake, I assure you,' interrupted the Earl, all unaware of the
astonishment he was exciting and the pain he was inflicting, and both of
which he must have perceived had not the Heer van Otterbeck, fortunately
for Dolores, approached at that moment, and tapping and proffering his
Sèvres china snuff-box, 'buttonholed' him on the inevitable subjects, the
quarrel between Britain and Holland, Paul Jones in the Texel, and
Commodore Fielding's conduct in firing on the Dutch fleet in the Channel,
which the Commodore did with hearty goodwill.
But for Dolores, the charms of the ridotto had vanished now; and in sore
perturbation of spirit and anxiety of heart, she bade her host and hostess a
hurried farewell, summoned her sedan, and took her departure homeward.
The lights, the music—the music of Lulli; the minuet de la cour, and the
gaiety of the ridotto, faded away behind her as the heiress took the
somewhat lonely road that led to the villa of her mother.
THE ABDUCTORS.
When last they met and parted, Lewie had given no hint of any desire
for foreign service, and certainly, with the relations then existing between
himself and her, it was the last thing to be thought of.
Her bearers seemed to crawl; she narrowly opened and shut her fan
again and again in her impatience, and stamped her little foot on the floor of
the sedan in her irritation and anxiety.
Though in the immediate vicinity of the Hague, the road was as lonely
as those who awaited her thereon could have wished. The blue dome of
heaven, a dome studded with diamonds—each itself a world—was
overhead; and steady and silvery was the light of the uprisen moon, above
the far expanse of the level landscape.
Suddenly Dolores heard the sound of voices; there were threats on one
hand and expostulation on the other. The sedan, with a violent jolt, was
suddenly deposited on the ground, and its bearers were dashed aside, as she
supposed, by foot-pads. Then a shriek of dismay escaped Dolores, when a
man, whose face was half-concealed by a crape mask, threw up the roof of
the sedan, opened the door and attempted to drag her out by the hand.
She saw another similarly masked, and a caleche, with a pair of horses,
close by.
Never dreaming of outrage for a moment, she thought that she must be
the victim of some extraordinary mistake, till she recognised the voice of
Maurice Morganstjern, when her alarm and astonishment instantly changed
to indignation.
'Maurice,' she exclaimed, 'for whom do you mistake me? What outrage
is this?'
'No mistake at all, my pretty cousin; will you please to take your seat in
this caleche?' he replied deliberately.
'Loose my hand. I wish none of your fair words; they are ever hateful
and unwelcome to my ear: more so than ever when you come thus—as you
must be—intoxicated,' she added, believing this to be the case.
'Beware, cousin—beware! You know how I love you, and yet you spurn
me. Come, Schrekhorn, and help me to lift her into the caleche. For all the
past bitterness I shall have a sweet revenge; and, Dolores, you will learn to
love me, when you will have none else in this world to cling to.'
On seeing the Heer van Schrekhorn, of whose character she had heard
something, approach her, the girl looked wildly round in terror: the road
was lonely; her home was at some distance, yet the lights in its windows
were visible; but no help was nigh. She now perceived that nothing less
than her forcible abduction was daringly intended; but what lay in the future
beyond that, she could scarcely realise.
Her first fears returned with double force, for she knew the recklessness
of the two men at whose mercy she found herself. How lovely and helpless
she looked!
'It is useless to fight against Fate, Cousin Dolores; and Fate decrees that
you are to be mine!' said he, firmly grasping her hand.
'To strike you to the earth for your insolence and daring.'
'In that case I would not seek to carry you off; so, I thank Heaven that
you are not a man, sweet cousin!' He placed his face close to hers, and
lowering his voice, said through his clenched teeth: 'Listen to me, Dolores;
you have, I fear, plighted yourself to the Scotsman Baronald in ignorance of
yourself, and now I am here to rescue you from the death in life to which
your girlish folly would doom you. I will soon teach you to forget that artful
interloper, if you ever thought seriously about him, which I cannot believe,
and our marriage will alter all your ideas.'
'Cease this nonsense, cousin; a day is coming when you will love me as
much as you may think you hate me now!'
'Marriage.'
'Why waste time thus?' asked the Heer van Schrekhorn, who had not yet
spoken, and who listened to all this with manifest impatience and
uneasiness; 'we know not who may come upon us; so into the caleche with
her at once!' he added with an oath.
Her slender figure stood very erect, and with tiny hands she strove to
free herself from his odious grasp; but the scorn, indignation, and
passionate resentment that flashed in her dark eyes and curled her tender
lips, now gave place to much of genuine fear of her assailants and how far
their daring might carry them, especially when the Heer laid his brutal
hands upon her; and uttering a wild cry she clung to the sedan, and without
a resort to extreme violence would not be torn from it.
Dolores suddenly found her strength give way, and felt about to faint,
when she heard a loud and wrathful exclamation as Morganstjern was
dashed aside on one hand, Schrekhorn knocked down in a heap on the other,
and there towered between her and them a tall military-looking man,
wearing a Khevenhüller hat, and having a scarlet roquelaure wrapped round
him.
The latter he instantly threw off, and drew his sword, on which the
driver of the caleche whipped up his horses, and fled at full speed towards
the Hague, leaving his employers to get out of the affair as they best could.
The first impulse of the two conspirators was to unsheath their swords
also; but their second was to pause ere attempting to use them, as they
recognised in their assailant an officer of the Scots Brigade, and one of high
rank apparently by his gold aiguilette.