2)A graphical plot with sales on the Y axis and time on the X axisis a

A)Scatter diagram.

B)Trend projection.

C)Radar chart.

D)Line graph.

E)Bar chart.

5)Assume that you have tried three different forecasting models. For the first, the MAD =2.5, for the second, the MSE = 10.5, and forthe third, the MAPE = 2.7. Wecan then say:

A) the third method is the best.

B)the second method is the best.

C)methods one and three are preferable to method two.

D)method two is least preferred.

E) None of the above

6)Daily demand for newspapers for the last 10 days has been as follows: 12, 13,16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest to most recent). Forecast sales for the next day using a two-daymoving average.

A) 14

B)13

C)15

D)28

E)12.5

7)Sales for boxes of Girl Scout cookies over a 4-month periodwere forecasted as follows: 100, 120, 115, and 123. The actual results over the4-month period were as follows: 110, 114, 119, 115.What was the MAD of the 4-month forecast?

A)0

B)5

C) 7

D)108

E)None of the above

8)In picking the smoothing constant for an exponential smoothing model, we shouldlook for a value that

A)produces a nice-looking curve.

B)equals the utility level that matches with our degree of risk aversion.

C) produces values which compare wellwith actual values based on a standard measure of error.

D)causes the least computational effort.

E)None of the above

9)Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand isconstant throughout the year. The costof placing an order is $40, while the holding cost is $20 per unit peryear. There are 360 working days peryear and the lead-time is 5 days. If Mark orders 200 units each time he places an order, what would histotal ordering cost be for the year?

A)$2,000

B)$2,720

C)$200

D)$720

E)None of the above

10)The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constantthroughout the year. The ordering costis $20 per order, and the holding cost is 20 percent of the purchase cost. The purchase cost is $40 per unit. There are 250 working days per year. Currently, the company is ordering 500 unitseach time an order is placed. Assumingthe company uses a safety stock of 20 units resulting in a reorder point of 60units, what is the expected lead-time fordelivery?

A)4 days

B)5 days

C)6 days

D)7 days

E)None of the above

11)R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unitwhen the order quantity is less than 500. When the quantity ordered is 500 or more, the price per unit drops to$48. The ordering cost is $30 per orderand the annual demand is 7,500 units. The holding cost is 10 percent of the purchase cost. If R. C. orders 500 units each time he placesan order, what would the total annual holding cost be?

A)$450

B)$1,200

C)$1,250

D)$2,400

E)None of the above

12)For the basic EOQ model, which of the following relationships is nottrue?

A)The optimal number of orders per year equals annual demand divided by the EOQ.

B)The reorder point equals daily demand multiplied by the lead-timein days, excluding safety stock.

C)Average inventory level equals one-half the ordersize.

D)The average dollar level of inventory equals unit price multiplied by orderquantity.

E)At EOQ, annual ordering cost equals annual carrying cost.

13)Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be soldthis year at a constant rate throughout the year. There are 250 working days per year and thelead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 perbox per year. How many units shouldAndre order each time?

A)200

B)400

C)500

D)100

E)None of the above

14)Daniel Trumpe has computed the EOQ for a product he sells to be 400 units. However, due to recent events he has a cashflow problem. Therefore, he orders only100 units each time he places an order. Which of the following is true for this situation?

A)Annual ordering cost will be lower than annual holding cost.

B)Annual ordering cost will be higher than annual holding cost.

C)Annual ordering cost will equal annual holding cost.

D)Annual ordering cost will be unaffected by the order policy change.

E)Nothing can be determined without more information.

15)Judith Thompson, the manager of the student center cafeteria, has added pizzato the menu. The pizza is ordered frozenfrom a local pizza establishment and baked at the cafeteria. Judith anticipates a weekly demand of 10pizzas. The cafeteria is open 45 weeks ayear, 5 days a week. The ordering costif $15 and the holding cost is $0.40 per pizza per year. The pizza vendor has a4-day lead-time andJudith wants to maintain 1 pizza for safety stock. What is the optimal reorder point?

A)10

B)8

C)4

D)9

E)None of the above