Coppell Services contracts with outsourcing partners to handle various customer service
functions. Based on a study of call volumes provided by one of the firm’s partners, the
minimum number of staff needed for each hour of the day is as follows:
Mr. Coppell hires 6 permanent employees and wants to staff the remaining
requirements using part-time employees who work 4-hour shifts (four consecutive
hours starting as early as 8 A.M. or as late as 1 P.M.).
How many excess employees are present in the 4-5 time slot?
A) 0
B) 2
C) 4
D) 6
A z-score of 1.0 means that ________.
A) the observation is -1.0 standard deviation to the right of the mean
B) the observation is -1.0 standard deviation to the left of the mean
C) the observation has no deviation from the mean
D) the observation is 1.0 standard deviation to the right of the mean
The Riviera Transport Company (RTC) produces car accessories at two plants: Dallas
and Atlanta. They ship them to major distribution centers in Houston, San Jose,
Jacksonville, and Memphis. The accounting, production, and marketing departments
have provided the information in the table below, which shows the unit cost of shipping
between any plant and distribution center, plant capacities over the next planning
period, and distribution center demands. RTC’s supply chain manager faces the problem
of determining how much to ship between each plant and distribution center to
minimize the total transportation cost, not exceed available capacity, and meet customer
demand.
Assume Xij = amount shipped from plant i to distribution center j, where i = 1
represents Dallas, i = 2 represents Atlanta, j = 1 represents Houston, and so on.
According to the transportation model, what is the total cost incurred by Riviera
Transport Company?
A) $29,016.95
B) $26,698.95
C) $20,331.35
D) $41,978.75
Use the table below to answer the following question(s) using the standard Solver.
Below is the spreadsheet for a plant location model:
What is the total amount shipped by the Atlanta plant to the distribution centers?
A) 600
B) 1,000
C) 1,250
D) 1,300
Below is the spreadsheet for an economic order quantity model.
Assume that the distribution of demand is normal with a mean of 20,000 and standard
deviation of 2,000.
What is the increase in total cost?
A) $ 280
B) $ 590
C) $ 353
D) $ 450
Below is a spreadsheet for a hotel overbooking model.
Assume that each reservation has a constant probability p = 0.04 of being cancelled.
Answer the question(s) using the Risk Solver Platform.
Which of the following cells is defined as an output cell?
A) B13
B) B14
C) B15
D) B17
Coppell Services contracts with outsourcing partners to handle various customer service
functions. Based on a study of call volumes provided by one of the firm’s partners, the
minimum number of staff needed for each hour of the day is as follows:
Mr. Coppell hires 6 permanent employees and wants to staff the remaining
requirements using part-time employees who work 4-hour shifts (four consecutive
hours starting as early as 8 A.M. or as late as 1 P.M.).
What is the minimum number of total part-time employees needed across all the 4-hour
shifts to ensure meeting the staffing requirements?
A) 16
B) 28
C) 24
D) 20
Letherin Hides is a company that makes boots specifically targeting college students.
Forecasts of sales for the next year are 200 in the summer, 450 in the autumn, and 500
in the winter. Accessories that are used on the boots are purchased from a supplier for
$31.66. The cost of capital is estimated to be 24% per year (or 6% per quarter); thus, the
holding cost per item is 0.06($31.66) = $1.9 per quarter (rounded figure). Letherin
Hides hires freelance art designers at part-time to craft designs during the summer, and
they earn $ 6 per hour. In the autumn, labor is more difficult to keep, and the owner
must pay $6.5 per hour to retain qualified help. Because of the high demand for
part-time help during the winter holiday season, labor rates are higher in the winter, and
workers earn $7.75 per hour. Each boot design takes 2 hours to complete. How should
production be planned over the three quarters to minimize the combined production and
inventory holding costs?
The table below provides information on Letherin Hides boot design cost and
production.
According to the linear optimization model, what is the net production for autumn?
A) 200
B) 500
C) 450
D) 50
The table below provides the sales data for JD Inc. for the year 1998. Given: α = 0.2,
β = 0.15, and γ = 0.05 (Hint: Use an additive Holt-Winters model.)
Umbrella Sales of JD Inc.
Calculate the value of the mean square error using an appropriate Holt-Winters trend
model for the given data.
A) 8.10
B) 346.26
C) 140942.78
D) 7.62
Interaction is:
A) the principle of having a model with maximum explanatory variables.
B) the process of coding categorical variables.
C) a measure to determine the correlation between dependent variables.
D) the dependence between two independent variables.
Which of the following types of conditions is most likely to render a midrange value
useless? A) having repetitious values in the data set
B) having the data arranged from least to greatest in value
C) having a small sample size
D) having extreme values in a data
Time-series models may exhibit seasonal effects or cyclical effects. A seasonal effect
differs from a cyclical effect in that a seasonal effect:
A) has no trend, is relatively constant, and only exhibits random behavior.
B) describes ups and downs over a time frame such as several years.
C) is one that repeats at fixed intervals of time, typically a year, month, week, or day.
D) is based on analysis of historical time-series data and are predicated on the
assumption that the future is an extrapolation of the past.
Stone Age Surfboards is a small manufacturer of two types of popular low-tide
surfboards, the Graystone and the Lava models. The manufacturing process consists of
two departments: fabrication and finishing. The fabrication department has 8 skilled
workers, each of whom works 9.25 hours per day. The finishing department has 5
workers, each of whom works a 6 -hour shift per day. Each pair of Graystone
surfboards requires 2.5 labor hours in the fabrication department and 2 labor hours in
finishing. The Lava model requires 4.2 labor-hours in fabrication and 3.6 labor-hours in
finishing. The company operates 6 days a week. It makes a per unit profit of $40 on the
Graystone model and $60 on the Lava model. The company anticipates selling at least
twice as many Lava models as Graystone models.
If the unit profit on both Graystone and Lava surfboards is increased by $10, what is the
total profit generated?
A) $ 521.74
B) $ 505.43
C) $ 423.91
D) $ 619.57
According to statistical notations, what does Σ stand for?
A) to act as a summation operator
B) to represent sample statistics
C) to represent population measures
D) to represent the number of items in a population
Which decision model incorporates the process of optimization?
A) predictive
B) prescriptive
C) descriptive
D) normative
The Atlas Movies Theater is planning to reprice their ticket rates to maximize revenues.
They have three classes of tickets: Classic, Silver, and Gold. The table below provides
information on the average ticket sales, revenue and price elasticity on demand. They
have a total seating capacity of 300. The table also provides the price range within
which they plan to reduce their ticket rates.
According to the nonlinear model, which of the following is the total projected revenue
for the new sales figures?
A) $1,637.72
B) $2,970.09
C) $1,316.92
D) $2,865.89
Descriptive analytics:
A) can predict risk and find relationships in data not readily apparent with traditional
analyses.
B) helps companies classify their customers into segments to develop specific
marketing campaigns.
C) helps detect hidden patterns in large quantities of data to group data into sets to
predict behavior.
D) can use mathematical techniques with optimization to make decisions that take into
account the uncertainty in the data.
In statistical notation, the elements of a data set are typically labeled as ________.
A) summation operators
B) letters in capitals
C) Greek letters
D) subscripted variables
While conducting regression analysis, how is constructing a normal probability plot
useful?
How is a frequency distribution calculated for categorical and numerical data?
Explain the concept of curvilinear regression model.
What is the expected value of sample information?
The following extract from a manufacturer’s database shows a sample of 10 suppliers,
their transportation charges, and the estimated and actual total costs of supplying
materials. (Note: Assume a significance level of 0.05 wherever necessary.)
On studying the database, the manufacturer found out that the average difference
between the estimated and actual total costs was $394. Based on the sample data, can
the manufacturer conclude that the average difference between the estimated and actual
total costs is different from zero?
P(P|Q) = P(P and Q) / P(Q)
The following extract from a manufacturer’s database shows a sample of 10 suppliers,
their transportation charges, and the estimated and actual total costs of supplying
materials. (Note: Assume a significance level of 0.05 wherever necessary.)
On studying the database, the manufacturer found out that the average difference
between the estimated and actual total costs was $394. Based on the sample data, can
the manufacturer conclude that the average difference between the estimated and actual
total costs is different from zero?
Pickson Luthiers Corporation is studying where to locate a phone charging point on the
factory floor. The locations of five production cells are expressed as X– and
Y-coordinates on a rectangular grid of the factory layout. The daily demand for the
charging point (measured as the number of trips to the charging point) at each
production cell is also known. Because of the nature of the equipment layout in the
factory and for safety reasons, workers must travel along marked horizontal and vertical
aisles to access the charger. Thus, the distance from a cell to the charger is measured as
rectilinear distance.
The table below provides the relevant information.
The optimal location should minimize the total weighted distance between the charging
point and all production cells, where the weights are the daily number of trips to the
phone charging point.
From the above table, provide the objective function for the best location of the
charging point. What kind of solution technique from Solver can be used to make the
optimization model based on the data?