MOCK Test

Calculate MAD for the following forecast versus actual sales figures. Forecast Actual 100 95 110 108 120 123 130 130 a. 2.5 b. 10 c. 9.5 d. 38

5. a 2.5

The following is a payoff table giving profits for various situations What decisions would an optimistic person make? Alternative 1 Alternative 2 Alternative 3 Do Nothing State of Nature A

Alternative 2

Which of the following statements is true about r2? a. It is also called the coefficient of correlation b. it is also called the coefficient of variation c. It represents the percent of variation in X that is explained by Y. d. It represents the percent of variation in the error that is explained by Y. e. It ranges in value from -1 to +1

B. It is also called the coefficient of variation

Extra inventory that is used to avoid stockouts is known as a.planned shortages. b.quantity discounts. c.safety stock. d.service level. e.ABC analysis.

C. Safety Stock

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. Currently, the purchase cost is $40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in 6 days. How many units should the company order each time an order is placed if the company wishes to minimize total inventory cost? a.100 b.200 c.250 d.500 e.none of the above

a. 100

Daily demand for newspaper for the last 10 days has been as follows (listed from oldest to newest): 12,13,16,15,12,18,14,12,13,15. Forecast sales for the next day (i.e day 11) using a two-day moving average. a.14 b.15 c.13 d.28 e. none of the above

a. 14

Use the following table to answer the following question Activity Immediate Predecessor Time ES EF LS LF A - 4 0 4 6 10 B - 5 0 5 0 5 C A 3 4 7 10 13 D B 8 5 13 5 13 E B 2 5 7 16 18 F C, D 3 13 16 15 18 G C, D 7 13 20 13 20 H E, F 2 16 18 18 20 How long can activity C be delayed without delaying the completion of the project? a.6 b.16 c.11 d.18 e.not enough information

a. 6

EVPI (Expected Value of Perfect Information) is a measure of the maximum value of additional information a. True b. False

a. True

On a practical note-if we are using waiting line analysis to study cars passing through a single tollbooth, reneging is probably not an issue. a.True b.False

a. True

One difficulty in waiting line analysis is that it is sometimes difficult to place a value on customer waiting time. a.True b.False

a. True

Slack is the time an activity can be delayed without impacting the completion time of the project. a.True b.False

a. True

When looking at the arrivals at the ticket counter of a movie theater, we can assume an unlimited queue. a.True b.False

a. True

Candy Incorporated stocks bubble gum game cards, an item that has a normally distributed demand during the reorder period with a mean of 12 dozen boxes and a standard deviation of 2 dozen boxes. If it is desirable to experience a stockout only 10 percent of the time, what is the appropriate safety stock? a.2.56 b.1.28 c.90 d.10 e.none of the above

a.2.56

Infeasibility means that the number of solution to the linear programming models that satisfies all the problem's constraints is a. at least 1 b. 0. c. an infinite number d. at least 2

b. 0

Consider the following linear programming problem: Maximize 4X + 10Y Subject to: 3X + 4Y ≤ 480 4X + 2Y ≤ 360 all variables ≥ 0 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

b. 1200

The following represents a project with known activity times. All times are in weeks. Activity Immediate Predecessor Time A - 4 B - 3 C A 2 D B 7 E C, D 4 F B 5 2. 3. Using the data in Table above, what is the minimum possible time required for completing the project? a.8 b.14 c.25 d.10 e.none of the above

b. 14

Which of the following is a general rule for crashing activities? a.Crash only non-critical activities b.Crash activities with zero slack. c.Crash activities with the greatest number of predecessors. d.Crash the path with the fewest activities.

b. Crash Activities with Zero Slack

An M│M│3 model has Poisson arrivals, exponential service times, and two channels. a.True b.False

b. False

The variance of the project completion time is equal to the sum of the variances of all the activities. a.True b.False

b. False

Which of the following factors is (are) not included in ordering cost? a. bill paying b. obsolescence c. purchasing department overhead costs

b. Obsolescence

A constraint that does not affect the feasible region is a a. non-negativity constraint b. redundant constraint c.standard constraint d.slack constraint

b. redundant constraint

A suburban specialty restaurant has developed a single drive-thru window. Customers order, pay, and pick up their food at the same window. Arrivals follow a Poisson distribution while service times follow an exponential distribution. If the average number of arrivals is 6 per hour and the service rate is 2 every 15 minutes, what proportion of the time is the server busy (utilized)? a.0.25 b.0.50 c.0.75 d.2.25

c 0.75

At an automatic car wash, cars arrive randomly at a rate of 7 cars every 30 minutes. The car wash takes exactly 4 minutes. On average, what would the length of the line be? a.8.171 b.7.467 c.6.533 d.0.467 e.none of the above

c. 6.533

Consider a project that has an expected completion time of 30 weeks and a standard deviation of 6 weeks. What is the probability that the project will be take more than 42 weeks? (Round answer) a.68% b.98% c.2% d.16% e.not enough information

c.2%

The annual demand of a certain item is 5400 units and the computed EOQ is 900 units. How many orders do they have to make per year? a.1 b.3 c.4 d.6

d. 6

At a local fast food joint, cars arrive randomly at a rate of 12 every 30 minutes. Service times are random (exponential) and average 2 minutes per arrival. The average time in the queue for each arrival is a.2 minutes b.4 minutes c.6 minutes d.8 minutes e.10 minutes

d. 8 Minutes

The critical path of a network is the a.shortest time path through the network b.path with the fewest activities c.path with the most activities. d.longest time path through the network

d. Longest time path through the network

The term queue discipline describes the a.degree to which members of the queue renege. b.sequence in which members of the queue arrived. c.degree to which members of the queue are orderly and quiet. d.sequence in which members of the queue are serviced. e.all of the above

d. Sequence in which members of the queue are serviced

Given an activity's optimistic, most likely, and pessimistic time estimates of 4, 14, and 18 days respectively, compute the PERT expected activity time for this activity. a. 14 b. 12 c. 11 d. 13

d.13