The daily demand for a product is normally distributed with a mean of 80 and a
standard deviation of 8. Constant lead time is 4 days. The cost of placing an order is
$20. The item costs $8 and the carrying rate per year is 10% of the item cost. Determine
the economic order quantity for a 365-day year.
Exponential smoothing forecasts are more sensitive or reactive to the changes in
demand as the value of the smoothing constant, α, ________.
The major types of forecasting methods are ________, ________, and ________.
A ________ is a plan of action followed by a player.
In a ________ game one player’s gains represent another player’s exact losses.
A company distributes repair parts for high-end appliances. The annual demand is
81,000 and the company operates 300 days per year. The annual carrying cost is 20% of
the item cost, which is $500. The ordering cost is estimated at $60 and the shortage cost
is $150.
Determine the annual shortage cost.
If a nonlinear programming model consists of a single nonlinear objective function and
a single linear constraint, it is called a(n) ________ optimization problem.
________ are at the endpoints of the constraint line segment that the objective function
parallels.
The drying rate in an industrial process is dependent on many factors and varies
according to the following distribution.
Determine the drying time for these 5 random numbers: 0.53, 0.95, 97, 0.96, and 0.07.
Kushie’s Coffee in Bangalore is a quaint establishment nestled near MG Road in the
central business district. It serves coffee and fruit cake to a clientele that has been
enjoying these products for over fifty years. The demand for coffee beans is 6600 cases
per year (each case has 24 ten-pound bags). It would be disastrous for them to run out
of coffee, so they keep a safety stock of 30 cases. The cases cost $4800 and it costs $5
per case to order coffee. As coffee is a perishable product, the holding cost is fairly high
at $40/case/year. The lead time to receive an order is seven days. Kushie’s is open 300
days a year.
What is their total policy cost (including cost of goods) if they order at the EOQ
amount?
Consider the following decision tree.
What is the expected value at node 4?
Cold & Calculating
The cold, calculating father did exactly that when examining the 27 year old failure to
launch man child that had turned his walk in closet into a bedroom. As he saw it, there
were five alternatives; each had its advantages and disadvantages, and under different
circumstances, each had a different financial incentive. He laid it all out neatly in a
table, but as not to arouse suspicion, he left the table’s labels very generic, so the
alternatives were simply labeled A through E while the different circumstances were
simply numbered one through three. He flicked the gray ash off of his favorite purple
smoking jacket and pondered the best course of action under each possible future. It
was good to be devious, he decided.
The cold, calculating father had little reason for optimism and tended towards a
pessimistic view of the entire world. Still, it might be useful to see what the other half
thinks, he thought to himself. Identify the optimal alternatives under these two opposite
views of the world.
The quantity values on the right-hand side of the primal inequality constraints are the
________ coefficients in the dual.
The Wiethoff Company has a contract to produce 10,000 garden hoses for a customer.
Wiethoff has four Different machines that can produce this kind of hose. Because these
machines are from Different manufacturers and use Differing technologies, their
specifications are not the same.
This problem requires two Different kinds of decision variables. Clearly define each
kind.
For the following transition matrices, determine the transient or absorbing states.
The model was entered into an Excel spreadsheet and the table below shows part of the
answer report. Provide an interpretation.
You formulate this as an assignment model and review the Zoe section of the sensitivity
analysis with Mondo. Provide him with an interpretation.
Two companies are about to make a decision regarding an investment in a new
promotional campaign. Company A will either advertise in all media or advertise in
newspapers only. Company B will either run a sweepstake or run a big sale. The payoff
matrix is shown below.
Using the information above, determine the proportion of time that each company
should employ each strategy.
Horatio Oscar Vineeth Lane (HOV Lane for short) records his commute times for a
period of one month and assigned them to five different categories as shown in the
table.
What is the cumulative probability for the three shortest commute categories?
A(n) ________ variable is the amount by which a goal level is underachieved.