Provided by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida
Constrained Opt Main Page | Constrained
Opt Discussion Questions | Graduate MA Course
1. A model that attempts to optimize an objective with a static set of constraints is
a. compatible with the concepts of lean enterprise and JIT.
b. compatible with the views of W. Edwards Deming.
c. a constrained optimization model.
d. a. and b.
e. all of the above.
2. Which of the following represent constrained optimization techniques?
a. The theory of
constraints.
b. The economic order quantity model.
c. The quality cost conformance model.
d. b. and c.
e. a., b. and c.
3. The key argument against constrained optimization models is that
a. because of a
static viewpoint they do not promote continuous improvement.
b. the models are not valid mathematically.
c. the variables
within the models are misspecified or incorrectly defined.
d. the models
ignore non-financial information.
e. none of the above.
4. The underlying assumptions of the linear cost-volume-profit model include
a. constant prices.
b. constant variable cost per unit.
c. constant fixed cost.
d. a. and c.
e. all of the above.
5. The constrained optimization controversy related to quality is mainly concerned with
a. the quality of design.
b. the quality of conformance.
c. the quality loss function.
d. a. and b.
e. b. and c.
6. Companies that successfully implement the lean enterprise approach make the economic order quantity model less relevant by
a. establishing long term relationships with vendors to
reduce the cost of ordering.
b. using cellular manufacturing and kanban systems to
significantly reduce carrying costs.
c. reducing the number of vendors to reduce the variation and
defects in incoming raw materials.
d. a. and b.
e. all of the above.
7. A change in an automobile model’s standard equipment from manual windows to automatic windows represents
a. an improvement in the quality of conformance.
b. an improvement in the quality of design.
c. an example of continuous improvement.
d. a. and c.
e. b. and c.
8. According to Morse, the tradeoff between cost and quality is related to
a. the quality of design.
b. the quality of conformance.
c. a. and b.
d. none of these.
9. According to the quality cost conformance model there is a tradeoff between
a. prevention costs plus appraisal costs and internal plus external
failure costs.
b. the cost incurred because poor quality can exist and the cost
incurred because poor quality does exist.
c. a. and b.
d. none of these.
10. According to Morse, the main purpose of a quality cost program is to
a. find the optimum level of quality.
b. identify potential quality improvements.
c. identify the opportunity cost associated with quality.
d. minimize the tradeoff between cost and quality.
e. provide a way to plan and control the cost associated with quality.
11. Which of the following does not represent prevention and appraisal costs?
a. Rework.
b. Inspection.
c. Supervision.
d. Training.
e. Product testing.
12. The traditional American management view of quality includes the view that
a. standard cost should include a normal allowance for
spoilage, rework and scrap.
b. workers cause most of the problems with quality.
c. inspection by the quality control department
is sufficient to control product quality.
d. b. and c.
e. a., b. and c.
13. The optimum level of quality, in the model referred to above, is where
a. prevention
costs are equal to appraisal costs. b. prevention costs are equal to internal failure costs.
c. appraisal
costs are equal to external failure costs.
d. prevention
and appraisal costs are equal to internal failure costs.
e. prevention and appraisal costs are equal to internal and
external failure costs.
14. In the quality cost model, which of the following costs increase as quality increases?
a. Spoilage
and rework.
b. Inspection.
c. Downtime.
d. Warranty.
e. none of these.
15. The quality cost model associated with Juran is designed to determine the optimum cost of
a. design
quality.
b. conformance quality.
c. product quality.
d. a. and b.
e. all of the above.
16. If we accept Deming’s view of quality, rather than Juran’s view, which of the following types of costs are misspecified (under or over specified) in the quality cost model?
a. Prevention costs.
b. Appraisal costs.
c. Internal failure costs.
d. External failure costs.
e. None of these.
17. Which of the following terms is associated with Deming's view of robust quality?
a. zero defects.
b. quality cost conformance model.
c. robust quality.
d. a. and b.
e. a. and c.
18. In the zero defects model promoted by Juran
a. items outside a target value are considered defects.
b. items outside specification limits are considered defects.
c. items outside a loss function are considered defects.
d. b. and c.
e. none of the above.
19. In the robust quality model promoted by Deming
a. items outside a target value are considered defects.
b. items outside specification limits are considered defects.
c. items outside a loss function are considered defects.
d. b. and c.
e. none of the above.
20. Which of the following are constrained optimization models?
a. special order.
b. product mix.
c. make vs. buy.
d. a. and b.
e. all of the above.
21. Crosby said quality is free. According to Crosby this means that
a. the quality cost model is valid.
b. the quality cost model is not valid.
c. as quality increases, costs decreases.
d. a. and b.
e. b. and c.
Constrained Optimization MC Solution