Review for Exam II

1. Review for Exam II This exam will be administered Wednesday, June 29, 2016, usual time and place

2. Exam Format • 100 multiple choice • no problems • Closed-book • Closed-notes • Closed-neighbor • BRING---pencil, calculator, orange scantron sheet

3. Exam Coverage • Chapter 10, Chapter 11, Supplement to Ch 11, Supplement to Ch 13, Supplement to Ch 14 and Chapter 15-second half • Simulation modeling in the supplement to Chapter 13, but not the content of Chapter 13—will test that later...recall that there were no HW problems on chapters 13 and 14—just their supplements. • LP problems in the supplement to Chapter 14, but not the content of Chapter 14—will cover that later.

4. Supply Chains • The integrated group of business processes and activities that form the supply chain include all of the following except ________. • procurement of services, materials, and components from suppliers • production of the products and services • distribution of products to the customers • information technology • Hint: take a retailer perspective

5. In modern supply chain systems, ____ replaces inventory • Information • Capital • labor • Intelligence • Creativity

6. Which of the following terms is synonymous with ‘supply chain’? • Demand chain • Value chain • Service chain • All of the above • A and b only

7. One way to reduce the bullwhip effect is for supply chain members to ________. • make ordering decisions independently of each other • share demand forecasts up and down the supply chain with other supply chain members • restrict information flows between supply chain members • forecast demand independently of other supply chain members

8. What is the difference between the use of EDI and faxing a business document? • Faxing requires someone on the receiving end to key in the information, costing money and diminishing quality (through the inadvertent inclusion of defects), but adding no value

9. When making important decisions and taking significant actions, would you say that you, like corporations, use a model ________. • never • often • sometimes • always • answers will vary from one student to another

10. In discrete/stochastic simulation, we are interested in • Entity idleness • Entity travel time • Entity time in the system • Resource utilization • All of the above

11. In discrete/stochastic simulation, which of the following components has time duration? • Events • Activities • Entities • Resources • All of the above

12. Simulation, including discrete/stochastic simulation, is appropriate for which of the following three decision environments? • Decision Making (DM) under Certainty • DM under risk and uncertainty • DM under change and complexity

13. Math programming models, like the transportation and transshipment models we looked at, are appropriate for which decision making environment • Decision Making (DM) under Certainty • DM under risk and uncertainty • DM under change and complexity

14. What is reduced cost? • Reduced cost is only zero when the associated decision variable is nonzero. When a decision variable IS zero, the reduced cost tells us by how much the associated cost//profit coefficient must be changed in order to get that decision variable to take on a value above zero.

15. What is shadow price? • Shadow price measures the amount of change we can expect in the objective function value accruing from a unit increase in a constraint right-hand side.

16. Which constraints have slack? (slack is the amount of resource that is unused) Which constraints have shadow prices of zero?

17. If you increased the amount of labor available by 1 unit, how much increase will you get in the objective function?

18. Suppose, in the Buster Brown problem you were to increase the number of dress heels by 100…..what would be the effect on the objective fcn?

19. If you increased the amount of leather available by 1 unit, how much increase would you get in the objective function?

20. Peanuts, Cashews and Almonds • The optimal solution calls for how many lbs of mix 1 to produce?

21. Peanuts, Cashews Sensitivity • Which type of nut would you add more of to increase profitability? Peanuts, Cashews or Almonds??

22. By how much must you adjust the objective coefficient of X2 in order to get it to take on a value greater than 0?

23. HW 10-2—Not Assigned

24. HW 10-4

25. In the example involving Southwest Airlines turns at a gate….. • What are the entities? • Name some events… • Name some activities… • What is the difference between an activity and an event? • What is the relationship between an event and an activity?

26. Chapter 15 – ERP • Inventory for Dependent Demand will NOT be covered…. • Exam coverage of this chapter starts on page 700

27. What is the information architecture modern ERP systems are currently based on? Mainframe/glass house Client/server N-tier distributed None of these

28. Every application software package consists of • Presentation management component • Business logic management component • Data management component • All of the above • 1 and 2 only

29. ERP • Is software that organizes and manages a company’s business processes by sharing info across functional areas • Large caps have been there and done that—transitioned to ERP • Mid and small caps are mostly there • This concept has been around since 1995 • The road to implementation has been rough

30. More ERP • Based on an N-tier distributed architecture • Not on mainframe glasshouse

31. Advantages of N-tier architecture • Provides for data integration • Better usage of MIPS on both PCs and servers • Solves the 36-month backlog of the centralized MIS shop • Enables a better career path for the MIS professional

32. N-Tier distributed architecture • Is decentralized or centralized, or some combination of these (which?) • Utilizes thick clients or thin clients (which?)

33. Sales & distribution Production & Materials Management Quality management Human resource management Project management Accounting and controlling/finance Supply chain management Customer relationship management ERP Modules

34. ERP Terms • Best-of-breed • Collaborative product commerce • Customer relationship management • Supply chain management • XML

35. Re-engineered Computer Architectures • Started with mainframe/glasshouse • Migrated to client/server • Evolved to N-tier distributed

36. Why did such re-engineering occur? • There was no data integration • MIPs on mainframes were hugely expensive and very much in demand • MIPs on PCs were idle 95% of the time and extremely cheap • Backlogs for MIS shops were at 36 months • Developing new applications were slow and expensive

37. Distributed architectures solved these problems • Data resides behind a single database engine

38. Components of any Software Application Presentation Management Business Logic Data Management Database

39. Components in brief PM BL DM

40. Mainframe Architecture (circa 1993) Mainframe Computer PM PM PM BL BL BL DM DM DM

41. First solution: Client/server architecture Thick Clients (PM, BL) Server (DM) Database

42. Modern solution of today: N-TIER DISTRIBUTED ARCHITECTURE • This is a distributed architecture like client/server, but now the application is distributed across three or more computing boxes on the network

43. N-Tier distributed Architecture Thin Clients (1/2PM) Data Server (DM) Database Application Server 1 Application Server 2

44. Take a closer look at the Application Servers Application Server runs the business logic component and half ot the presentation management component—the portion the serves out the web pages

45. Comments on N-Tier Distributed Architecture • Clients are called ‘thin’ because the only thing running on them is the Internet Browser • The IT professional doesn’t have to install anything on the client • More re-use is possible—specifically that internet browser

46. Advantages of N-Tier Distributed Architecture • Like Client/server, it accommodates enterprise visibility because the data are integrated and accessible through a single DBMS—that Oracle engine • Applications can be built rapidly because there is abundant reuse • The DM module is reused • Half of the PM component is reused • There are reuse opportunities within the rest of the PM component and the BL component as well

47. More advantages of N-Tier • IT professionals don’t have to be remotely loaned out to marketing, management, accounting and finance • They can now be centrally located and managed where career paths will exist for them

48. Application Servers do Two things • They serve out web pages upon request • They do all of the business logic processing.

49. ERP Modules • Finance/Accounting • Sales Marketing • Production/Materials Management • Human Resources • Supply Chain Management • Customer Relation Management

50. These modules would be placed in a • Thin client • Data server • Application server • Mainframe WHICH??