CBK ADM

Consider the following linear programming problem: Maximize 12X + 10Y Subject to: 4X + 3Y ≤480 2X + 3Y ≤360 all variables ≥0 Which of the following points (X,Y) is feasible?

(30, 100)

The following is an opportunity loss table.What decision should be made based on the minimax regret criterion?

Alternative 2

Which of the following is not true about continuous random variables?

They can only be integer values.

If two events are mutually exclusive, then:

all of the above

Inventory:

all of the above

R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is less than 500. When the quantity ordered is 500 or more, the price per unit drops to $48. The ordering cost is $30 per order and the annual demand is 7,500 units. The holding cost is 10 percent of the purchase cost. If R. C. orders 500 units each time he places an order, what would the total annual holding cost be?

$1,200

Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. If Andre orders 500 boxes each time he orders from his supplier, what would his total annual inventory cost be (holding cost plus ordering cost)?

$4,350

Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per year and the lead-time is 5 days. If Mark orders 200 units each time he places an order, what would his total ordering cost be for the year?

$720

Consider the following linear programming problem: Maximize 5X + 6Y Subject to: 4X + 2Y ≤420 1X + 2Y ≤120 all variables ≥0 Which of the following points (X,Y) is in the feasible region?

(100, 10)

Data for a particular subdivision near downtown Houston indicate that the average price per square foot for a home is $100 with a standard deviation of $5 (normally distributed). What is the probability that the average price per square foot for a home is less than $85?

0.001

The number of cell phone minutes used by high school seniors follows a normal distribution with a mean of 500 and a standard deviation of 50. What is the probability that a student uses more than 350 minutes?

0.999

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)?

107

An air conditioning and heating repair firm conducted a study to determine if the average outside temperature could be used to predict the cost of an electric bill for homes during the winter months in Houston, Texas. The resulting regression equation was: Y = 227.19 - 1.45X, where Y = monthly cost, X = average outside air temperature If the temperature averaged 38 degrees during January, what is the forecasted cost of January's electric bill?

172.09

The inspection of cans of juice involves sampling some cans and weighing them. The overall average for the samples is 39 ounces. Each sample contains 36 cans. The standard deviation is estimated to be 2 ounces. The 99.7% lower control chart limit for the average would be __________.

38.00

The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. The purchase cost is $40 per unit. There are 250 working days per year. Currently, the company is ordering 500 units each time an order is placed. Assuming the company uses a safety stock of 20 units resulting in a reorder point of 60 units, what is the expected lead-time for delivery?

5 days

The following is a payoff table giving profits for various situations. What decision would a pessimist make?

Alternative 1

Assume you have a normal distribution representing the likelihood of completion times. The mean of this distribution is 10, and the standard deviation is 3. The probability of completing the project in 7 or fewer days is the same as the probability of completing the project in 13 days or more.

True

Variations that need not occur in production processes are referred to as:

assignable variations

The "point at which to reorder" depends directly on which of the following?

lead-time

Expected monetary value (EMV) is:

the average or expected monetary outcome of a decision if it can be repeated a large number of times.