Answer 1-25. True or false.
1. The productivity is commonly expressed as the ratio of the quantity of output to the quantity of input. 2. The first step, and a key element, in the decision-making process is to generate all possible alternatives. 3. The random variation in time series refers to an unanticipated or unpredictable effect due to unusual occurrence 4. The u (mu) and o (sigma) represent sample parameters rather than population parameters. 5. Changing one or more of the objective coefficients will change the feasible solution area in the L.P. problem. 6. The zero value of correlation coefficient indicates an absence of any relationship between two variables. 7. Most service parts in the auto part shops are examples of the dependent demand inventory since it is used to fix cars. 8. Independent demand inventories usually can be calculated since their demands are independent of the market situations. 9. One of the critical assumptions of the EOQ model is that inventory will be instantaneously replenished by a new order. 10. In ABC analysis, the "A "items are the largest percentage quantity of items with a high-value in inventory. 1 1. The breakeven points is defined as the level of output at which the total fixed costs are equal to the total variable cost. 12. The average inventory level is calculated by a half of Q (i.e. 1 /2 Q) in both EOQ and ERL models. 13. Forecasting techniques are applicable more for independent demand items than for dependent demand items. 14. Monitoring both before and after production involves acceptance sampling procedure rather than process control (SPC). 15. The MINIMAX criterion is a pessimistic approach in decision making under extremely uncertainty. 16. PERT and CPM are different in the fact PERT is probabilistic; while CPM is deterministic. 17. If an activity has a zero slack in PERT/CPM, it means the project will be affected by the activity on that path. 18. Type I error is called the consumer's risk since it refers to the error of accepting a bad lot. 19. The LTPD (lot tolerance percent defective) is associated with a consumer's risk rather than a producer's risk 20. If the order quantity (size of order) is increased, holding costs decrease and ordering costs increase. 21. A consumer's risk is the probability of a consumer's rejecting goods that are lower in quality than requested. 22. One of the critical assumptions of the ERL model is that inventory will not be instantaneously replenished by new order. 23. The mean absolute deviation (MAD) is used to detect random factors in the forecasting. 24. The multiple regression/correlation model is a model with multiple dependent variables and single independent variable 25. A best linear trend line can be obtained by using a least squares method rather than regression coefficient method
