1) A graphical plot with sales on the Y axis and time on the X axis is a
A) scatter diagram.
B) trend projection.
C) radar chart.
D) line graph.
E) bar chart.
2) Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next day using a two-day moving average.
A) 14
B) 13
C) 15
D) 28
E) 12.5
3) The process of isolating linear trend and seasonal factors to develop more accurate forecasts is called
A) regression.
B) decomposition.
C) smoothing.
D) monitoring.
E) None of the above
4) Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next day using a three-day weighted moving average where the weights are 3, 1, and 1 (the highest weight is for the most recent number).
A) 12.8
B) 13.0
C) 70.0
D) 14.0
E) None of the above
5) Demand for soccer balls at a new sporting goods store is forecasted using the following regression equation:
Y = 98 + 2.2X where X is the number of months that the store has been in existence. Let April be represented by
X = 4. April is assumed to have a seasonality index of 1.15. What is the forecast for soccer ball demand for the month of April (rounded to the nearest integer)?
A) 123
B) 107
C) 100
D) 115
E) None of the above
6) With an annual demand of 2,400 units, daily demand of 10 units, and daily production rate of 40 units, a company has determined that each production run will be for 200 units. If production starts when the inventory level is at zero, how many units would actually be in the warehouse at the end of the first day of production? (Round your answer to the nearest unit.)
A) 12
B) 20
C) 30
D) 40
E) None of the above
7) Fresh First grocery store purchases bread at $1 per loaf and sells it at $1.50 a loaf. Any unsold bread is fed to the geese at a local pond. What is the decision rule?
A) stock an additional unit if P ≥ 0.33
B) stock an additional unit if P ≥ 0.4
C) stock an additional unit if P ≥ 0.5
D) stock an additional unit if P ≥ 0.67
E) stock an additional unit if P ≥ 0.75
8) A person is using the normal distribution to determine the safety stock for a product. The Z value of 1.65 would be associated with what service level?
A) 90 percent
B) 95 percent
C) 100 percent
D) 92.5 percent
9) Consider the material structure tree for item A below. If 10 units of A are needed, how many units of E are needed?
A) 60
B) 6
C) 240
D) 24
E) 480
10) The "point at which to reorder" depends directly on which of the following?
A) EOQ
B) ordering cost
C) lead-time
D) storage costs
E) unit purchasing cost
11) With ________, inventory arrives just before it is needed.
A) VMI
B) ABC
C) ERP
D) JIT
E) JBT
12) A feasible solution to a linear programming problem
A) must be a corner point of the feasible region.
B) must satisfy all of the problem's constraints simultaneously.
C) need not satisfy all of the constraints, only the non-negativity constraints.
D) must give the maximum possible profit.
E) must give the minimum possible cost.
13) The corner point solution method
A) will always provide one, and only one, optimum.
B) will yield different results from the isoprofit line solution method.
C) requires that the profit from all corners of the feasible region be compared.
D) requires that all corners created by all constraints be compared.
E) will not provide a solution at an intersection or corner where a non-negativity constraint is involved.
14) Consider the following linear programming problem:
The feasible corner points are (48,84), (0,120), (0,0), (90,0). What is the maximum possible value for the objective function?
A) 1032
B) 1200
C) 360
D) 1600
E) None of the above
15) Consider the following linear programming problem:
Which of the following points (X,Y) is not a feasible corner point?
A) (0,60)
B) (105,0)
C) (120,0)
D) (100,10)
E) None of the above
16) In order for a linear programming problem to have a unique solution, the solution must exist
A) at the intersection of the non-negativity constraints.
B) at the intersection of a non-negativity constraint and a resource constraint.
C) at the intersection of the objective function and a constraint.
D) at the intersection of two or more constraints.
E) None of the above
17) When using a general LP model for transportation problems, if there are 4 sources and 3 destinations, which of the following statements is true?
A) There are typically 4 decision variables and 3 constraints.
B) There are typically 12 decision variables and 7 constraints.
C) There are typically 7 decision variables and 7 constraints.
D) There are typically 12 decision variables and 12 constraints.
E) There are typically 12 decision variables and 3 constraints.
18) The two most common objectives for the assignment problem are the minimization of
A) uncertainty or inexperience.
B) total costs or inexperience.
C) total costs or total time.
D) total time or inexperience.
E) total costs or uncertainty.
19) The minimal-spanning technique would best be used
A) to assign workers to jobs in the cheapest manner.
B) to determine LAN network wiring within a building.
C) to minimize traffic flow on a busy highway.
D) by a trucking company making frequent but repeatable drops.
E) to determine the number of units to ship from each source to each destination.
20) The shortest-route technique would best be used to
A) assign workers to jobs in the cheapest manner.
B) determine the number of units to ship from each source to each destination.
C) determine the amount of LAN network wiring within a building.
D) minimize the amount of traffic flow on a busy highway.
E) determine the path for a truck making frequent but repeatable drops.