Reference no: EM132266098

1. State whether the following are true or false.

a. All else equal, an increase in the arrival rate of customers to a ticket counter makes their average wait time longer.

b. A hair stylist can reduce the queue length at her salon by increasing the variety and customizability of the services she offers.

c. Production leveling (heijunka) requires an organization to produce products in larger batch sizes.

d. As the cost of customer waiting goes up, a good strategy to lower costs is to increase the number of telephone lines.

e. The service level offered by a centralized and a decentralized inventory management system are the same for the same quantity of inventory.

2. State whether the following are true or false.

a. All else equal, if mean demand falls, the amount of safety stock required to meet the same service level rises.

b. A standard (no-priority) service process works best with a single queue while a prioritized service process (2 levels of customer priority, high and low) works best with two queues.

c. If demand increases by a factor of 9, it is optimal to increase batch sizes (while ordering) by a factor of 9.

d. If the desired service level increases and variability of demand increases, the required safety stock increases.

e. Batch size reduction leads to an increase in throughput.

3. In a "Portfolio Selection" application, the objective function is always to minimize risk, given a set of legal and policy constraints

True

False

4. Alternate optimal solutions are common in linear programming applications.

True

False

5. The "Sinking Fund" problem can be classified as a multi-period linear programming application.

True

False

6. The objective function of a transportation problem is to:

A. maximize supply quantities

B. minimize total demand

C. maximize transportation cost

D. minimize total shipping cost