Exam 1

Drone sales for a New York based firm over the last 4 weeks are depicted in the table below: Week Unit Sales 1 700 2 724 3 720 4 728 What is the equation of the trend line and the predicted sales for week 6?

698 + 8t and 746

The owner of firewood to go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per chord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. If, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is anticipated to be 35 cords per day, what would be its utilization?

70%

LP programs must have a single goal or objective specified

True

The Excel Solver Parameters window shown here has been correctly setup to obtain the optimal solution for the given problem. 2 subjects

True

Utilization is defined as the ratio of effective capacity to design capacity.

False Utilization is the ratio of output to design capacity.

Given the following data for a make-or-buy decision: Buy: $0 per year - $8 per unit Make: $100,000 per year - $4 per unit

Less than 25,000 units

Consider the following decision scenario Buy: high-$80 low-$0 Rent: high $70. Low $30 Lease: high $30. Low $50 *PV for profits ($000) If P(high) is 0.6, the choice for maximum expected value would be:

Rent

The term capacity refers to the maximum quantity an operating unit can process over a given period of time.

TRUE An operation's capacity is defined as the maximum rate of output possible.

An advantage of a weighted moving average is that recent actual results can be given more importance than what occurred a while ago.

TRUE Weighted moving averages can be adjusted to make more recent data more important in setting the forecast.

An idle percentage of zero means a line is perfectly balanced.

TRUE All workstations would be occupied 100% of the time.

The goal of line balancing is to assign tasks to workstations in such a way that the workstations have approximately equal time requirements.

TRUE This is why it is called line balancing.

A local bagel shop produces two products: bagels (B) and croissants (C). Each bagel requires 6 ounces of flour, 1 gram of yeast, and 2 tablespoons of sugar. A croissant requires 3 ounces of flour, 1 gram of yeast, and 4 tablespoons of sugar. The company has 6,600 ounces of flour, 1,400 grams of yeast, and 4,800 tablespoons of sugar available for today's production run. Bagel profits are 20 cents each, and croissant profits are 30 cents each. What is the objective function?

$0.20B + $0.30C = Z This is the objective function.

Reliability is the probability that a product or system will function when activated

True The higher the probability, the more reliable the product or system.

The time between failures for an electrical appliance is exponentially distributed with a mean of 25 months. What is the probability that the next failure will not occur before 30 months have elapsed?

in excess of .3 but not in excess of .4

At the break-even point

total cost equals total revenue

If a line is balanced with 80% efficiency, the "balance delay" will be:

20%

The new owner of a beauty shop is trying to decide whether to hire one, two, or three beauticians. She estimates that profits next year (in thousands of dollars) will vary with demand for her services, and she has estimated demand in three categories, low, medium, and high. Demand # of Beauticians Low Medium High One 50 75 100 Two 0 100 100 Three -100 70 300 If she feels the chances of low, medium, and high demand are 50 percent, 20 percent, and 30 percent respectively, what are the expected annual profits for the number of beauticians she will decide to hire?

$70,000 Given these likelihoods, this is the EMV for the best choice.

The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. What would the profit be if she were to produce and sell 5,000 rosebushes?

$9,000 Total revenue would be $30,000. Total cost (fixed = $6,000, variable = $15,000) would be $21,000.

Given the following historical data, what is the simple three period moving average forecast for period 6? 1-73 2-68 3-65 4-72 5-67

68

A system consists of two components, each of which must activate if the system is to activate. One component has a reliability of .99. The other has a reliability of .95. The components are independent of one another with respect to reliability. What is the overall system reliability?

.94 The system reliability is the product of the two component reliabilities.

An electrical appliance will not work unless component QK does. Component QK's reliability is 0.95. Every other part of the appliance is 100 percent reliable. What would the reliability of the appliance be if a backup QK were added?

0.9975

Which of the following could not be a linear programming problem constraint

1A + 2B

A company is designing a project layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product are: u 30 none V 30 u W 6 u X 12 w Y 54 x Z 30 v,y

3

What is the break-even quantity for the following situation? FC= $1,200 per week VC= $2 per unit Rev= $6 per unit

300

The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. How many rosebushes would she have to produce and sell in order to make a profit of $6,000?

4,000 Add the desired profit of $6,000 to the fixed cost, then divide the sum by the per-unit contribution margin.

The production planner for fine coffees, inc. produces two coffee blends: American (A) and British (B) two of his resources are constrained Columbia beans of where she can get Atmos 300 pounds 4800 oz. per week and Dominican beans which she can get at most 200 pounds 3200 oz. per week each pound of American blend coffee requires 12 ounces of colombian beans of 4 ounces of Dominican been to a pound of British blend coffee uses 8 ounces of each type of being profits for the American blend or two dollars per pound and profits for the British butter one dollar per pound which of the following is not a feasible production combination?

400 A and 400 B

Given the following information, what would efficiency be? Effective capacity = 80 units per day Design capacity = 100 units per day Utilization = 48 percent

60 percent

Given an actual demand of 59 a previous forecast of 64 and an alpha of 0.3 what would the forecast for the next period be using simple, exponential smoothing?

62.5

A manager uses the following equation to predict monthly receipts: Yt = 40,000 + 150t. What is the forecast for July if t = 0 in April of this year?

A. 40,450 July would be period 3, so the forecast would be 40,000 + 150(3).

Consider the following decision scenario Buy: high-$80 low-$0 Rent: high $70. Low $30 Lease: high $30. Low $50 *PV for profits ($000) The maximum strategy would be:

Buy

Suppose a three-period weighted average is being used to forecast demand. Weights for the periods are as follows: wt-3 = 0.2, wt-2 = 0.3 and wt-1 = 0.5. Demand observed in the previous three periods was as follows: At-3 = 2,200, At-2 = 1,950, At-1 = 2,050. What will be the demand forecast for period t?

D. 2050 The forecast for will be (.2 * 2,200) + (.3 * 1,950) + (.5 * 2,050) = 2,050.

MAD is equal to the square root of MSE, which is why we calculate the easier MSE and then calculate the more difficult MAD.

FALSE MAD is the mean absolute deviation.

The percentage of idle time in an assembly line is called cycle time

FALSE This is called balance delay.

A maximum approach involves choosing the alternative with the highest payoff

False

Excel Solver does not allow for the inclusion of greater than or equal to, less than or equal to or equal nomenclature as Excel will not recognize these.

False

Excel Solver is the only method that one can utilize for automated linear programming solutions.

False

The Excel Solver Parameters window shown here has been correctly setup to obtain the optimal solution for the given problem. 3 subjects

False

The maximal approach is a pessimistic strategy

False

The logistics/operations manager of a mail order House purchases to products for resale king beds, K and queen beds cute each king bed cost $500 and requires 100 ft.³ of storage space and each queen bed cost $300 and requires 90 ft.³ for storage space the manager has 75,000 to invest in bed this week and her warehouse has 18,000 ft.³ available for storage profit fridge. King bed is $300 and each queen bed is 150. What is the objective function?

Z=$300K + $150Q

Efficiency is defined as the ratio of:

actual output to effective capacity. (Efficiency measures the usage of effective capacity.)

Suppose a given control unit fails, on average, every 12,000 hours. It takes an average of 900 hours to repair and reboot this unit. The repair/reboot procedures for this unit are being reconfigured. By how much would average repair/reboot time need to be reduced to increase availability by 5 percent (assuming the control unit's average life remains unchanged)?

more than 600 hours but not more than 800 hours