7) There are seven cities (City 1-City 7) served by Acme Trucking. Route availability is
limited. The distances, in hundreds of miles, are given in the table below for each route.
If the truck were required to take the route from City 4 to City 5, what would be the
overall route?
A) 1-3, 3-4, 4-5, 5-6, 6-7
B) 1-2, 2-4, 4-5, 5-7
C) 1-2, 2-3, 3-4, 4-5, 5-6, 6-7
D) 1-3, 3-5, 5-6, 6-7
E) None of the above
8) The EOQ model without the instantaneous receipt assumption is commonly called
the
A) quantity discount model.
B) safety stock model.
C) planned shortage model.
D) production run model.
E) None of the above
9) 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 a
home during the winter months in Richmond, VA. It was determined that a quadratic
model could be used and the following prediction equation was established:
Y = $1557.76 – 55.05X1 + 0.56X2
where Y = monthly cost, X1 = average temperature, and X2 = average temperature2
(a) If December has an average temperature of 43 degrees, what is the forecasted
monthly electric bill?
(b) If January has an average temperature of 40 degrees, what is the forecasted monthly