BSOP 209 Final Exam

BSOP 209 Final Exam
Page 1
1. (TCO 8) What are the three parts of a wait-line system?
2.
(TCO 9) What is the objective function
of LP?
3.
(TCO 11 & 12) What are two of the
steps in a simplex maximization problem?
4. (TCO 10) What will happen if the right-hand side of a constraint is
changed?
5.
(TCO 15 & 16) What are three of the
basic steps that both PERT and CPM follow?
6.
(TCO 16) What is a “dummy
activity?”
7.
(TCO 3, 4, & 5) What is the formula
for linear regression? Define each part.
8.
(TCO 1) What are the four qualitative
forecasting approaches that are available to us? (Points
9.
(TCO 6) Describe the “revenue
junction.”
10. (TCO 8) What are the three parts of a typical queuing system?
11.
(TCO 8) When designing a waiting line
system, what “qualitative” concerns need to be considered?
12.
(TCO 8) What is the expected value with
perfect information?

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2
1.(TCO 1 &2) What is the forecast for Aug based on a weighted moving
average applied to the following past demand data and using the weights: 5, 3,
1.5? (largest weight is for most recent data)
2.(TCO 3, 4, and 5) The
XYZ Paint Shop owns and operates a dozen shops in southern Iowa. Their
signature paint is black epoxy. Sales (X, in millions of dollars) is related to
Profits (Y, in hundreds of thousands of dollars) by the regression equation Y =
6.321 + 0.65X. What is your forecast of profit for a store with sales of $25
million? $65 million?
3.(TCO 6 and 7) A product is currently made in a job shop, where fixed
costs are $4,500 per year and variable cost is $10 per unit. The firm sells the
product for $70 per unit. What is the break-even point for this operation? What
is the profit (or loss) on a demand of 220 units per year?
4.(TCO 13, 14) XYZ coating company has reviewed four new processes for
improving their coating line. The four processes labeled A, B, C, and D use
different technology and have different capacities. All the processes have the
same level of production and the lifetime. The four states of nature represent
four levels of consumer acceptance of the firm’s products. Values in the table
are net present value of future profits in millions of dollars. Forecasts
indicate that there is a 0.4 probability of acceptance level 1, 0.3 chance of
acceptance level 2, 0.6 chance of acceptance level 3, and 0.5 change of acceptance
level 4.