The following data summarizes the historical demand for a product:
If the forecasted demand for June, July, and August is 32, 38 and 42, respectively, what
is MAD?
Due to increased sales, a company is considering building three new distribution centers
(DCs) to serve four regional sales areas. The annual cost to operate DC 1 is $500 (in
thousands of dollars). The cost to operate DC 2 is $600 (in thousands of dollars.). The
cost to operate DC 3 is $525 (in thousands of dollars). Assume that the variable cost of
operating at each location is the same, and therefore not a consideration in making the
location decision.
The table below shows the cost ($ per item) for shipping from each DC to each region.
Region
The demand for region A is 70,000 units; for region B, 100,000 units; for region C,
50,000 units; and for region D, 80,000 units. Assume that the minimum capacity for the
distribution center will be 500,000 units.
Write the constraints for the 3 distribution centers.
Consider the following annual sales data for 2001-2008:
Calculate the correlation coefficient.
In the basic EOQ model, if annual demand is 50 units, carrying cost is $2 per unit per
year, and ordering cost is $15, what is the EOQ?
Altered marginal probability of an event based on additional information is a ________
probability.
In a ________ problem, items are allocated from sources to destinations at a minimum
cost.
Taco Loco is considering a new addition to their menu. They have test marketed a
number of possibilities and narrowed them down to three new products, X, Y, and Z.
Each of these products is made from a Different combination of beef, beans, and
cheese, and each product has a price point. Taco Loco feels they can sell an X for $17, a
Y for $13, and a Z for $14. The company’s management science consultant formulates
the following linear programming model for company management.
Max R = 14Z + 13Y + 17X
subject to:
Beef 2Z + 3Y + 4X ≤ 28
Cheese 9Z + 8Y + 11X ≤ 80
Beans 4Z + 4Y + 2X ≤ 68
X,Y,Z ≥ 0
The sensitivity report from the computer model reads as follows:
Taco Loco should try to purchase additional ________, but should not buy more
________.
Mildred is attempting to prepare an optimal quantity of macaroni and cheese for the
potluck supper this Sunday. The instructions indicate that one cup of water is needed for
each box she needs to prepare. She sleeps well on Saturday night, secure in her
knowledge that she knows the precise amount of water she will need the next day. This
knowledge illustrates the assumption of ________.
A graduate research assistant “moonlights” at the short order counter in the student
union snack bar in the evenings. He is considering asking for help taking orders, but
needs to convince the management that they should hire another student. Because he is
taking a simulation class, he thinks it may be the perfect way to convince management
to hire more help if he can show that customers have to wait a long time. When a
customer arrives, he takes their order and their payment, prepares the food, gives it to
the customer, and then takes the order from the next person in line. If someone arrives
while he’s cooking an order, they have to wait until he’s completed the current order. He
is working on the simulation and a portion is shown below.
Complete the table below and determine the average customer wait time.
Data envelopment analysis indicates the relative ________ of a service unit compared
with others.
The objective of a facility location problem is to minimize ________.
In Markov analysis, once the system leaves a(n) ________ state, it will never return.
The diagram below shows the activities on the nodes, and the table shows the normal
time and crash time (in days) and cost for each activity.
Determine which activities should be crashed to shorten the project by 3 days. What is
the cost?
A(n) ________ forecast encompasses the immediate future, is concerned with daily
activities of the firm and does not go beyond one or two months in to the future.
The injection molding department of Alver Inc. uses an average of 40 pounds of a
special powder per day. The plant operates 250 days per year. The daily usage of the
powder is normally distributed with a standard deviation of 5 pounds per day. The lead
time to obtain the powder from a supplier is 9 days. The annual holding cost is $2 per
unit and the cost of ordering the powder is $50.
How many orders will be placed each year?