Introduction to Management Science
11) Management science modeling techniques provide results that are known with certainty.
12) The term “sensitivity analysis” refers to testing how a problem solution reacts to changes in one or more of the model parameters.
13) Fixed costs depend on the number of items produced.
14) Variable costs depend on the number of items produced.
15) Fixed cost is the difference between total cost and total variable cost.
16) The break-even point is the volume that equates total revenue with total cost.
17) In general, an increase in price increases the break-even point if all costs are held constant.
18) If variable costs increase, but price and fixed costs are held constant, the break-even point will decrease.
19) Managers utilize spreadsheets to conduct their own analyses in management science studies.
20) Management science techniques focus primarily on observation, model construction, and implementation to find an appropriate solution to a problem.
21) Management science modeling techniques focus on model construction and problem solution.
22) A typical objective function might be written as 3S + 2R + 5Z ≤ 20.
23) Decision Support Systems (DSS) use computers to help decision makers address complex problems.
24) In both an objective function and a constraint, the decision variables are represented by numbers.
25) Constraints usually appear as equations that are less than, equal to, or greater than a parameter.
26) Enterprise Resource Planning (ERP) system is a data-oriented decision support system that utilizes specific management science solution procedures to solve individual problems such as cost-volume analysis.
27) A key element of a decision support system (DSS) is the person using the system.
28) Electronic data interchange (EDI) is a type of decision support system.
29) A ________ is a symbol used to represent an item that can take on any value.
30) ________ are known, constant values that are coefficients of variables in equations.
31) ________ are pieces of information from the problem environment.
32) A ________ is a functional relationship including variables, parameters, and equations.
33) Management science techniques include ________ techniques, models that are represented as diagrams, presenting a pictorial representation of the system being analyzed.
34) An increase in output typically results in an increase in the ________ cost.
35) ________ techniques provide results that contain uncertainty, unlike mathematical programming techniques which are deterministic.
36) ________ costs are independent of the volume of goods produced and remain constant.
38) ________ depend on the number of items produced.
37) The difference between volume multiplied by price and the sum of fixed and variable costs is ________.
39) Total revenue minus total cost equals ________.
40) The ________ is the volume that equates total revenue with total cost.
