Posted: January 16th, 2017

The total cost for a waiting line does NOT specifically depend on a. the cost of waiting. b. the cost of service. c. the number of units in the system

In the latter part of the class, we discussed at some length the case study entitled, “What’s Happening?” Ultimately, the solution to the problem the owners are experiencing MUST involve… a. a different forecasting method. The one they are using now does NOT have the minimal values of MAE or MSE. b. more careful monitoring of inventory levels as well as usage of safety stock so as to avoid stock outs from recurring. c. further study of their customer base so as to better understand the reasons for the declining demand. d. use of a stochastic inventory management model such as the EOQ. 12. Decision makers in queuing situations attempt to balance a. operating characteristics against the arrival rate. b. service levels against service cost. c. the number of units in the system against the time in the system. d. the service rate against the arrival rate. 13. If arrivals occur according to the Poisson distribution every 20 minutes, then which is NOT true? a. ? = 20 arrivals per hour b. ? = 3 arrivals per hour c. ? = 1/20 arrivals per minute d. ? = 72 arrivals per day 14. In a waiting line situation, arrivals occur, on average, every 10 minutes, and 10 units can be received every hour. What are ? and ?? a. ? = 10, ? = 10 b. ? = 6, ? = 6 c. ? = 6, ? = 10 d. ? = 10, ? = 6 15. The total cost for a waiting line does NOT specifically depend on a. the cost of waiting. b. the cost of service. c. the number of units in the system. d. the cost of a lost customer. 16. For many waiting line situations, the arrivals occur randomly and independently of other arrivals and it has been found that a good description of the arrival pattern is provided by a. a normal probability distribution. b. an exponential probability distribution. c. a uniform probability distribution. d. a Poisson probability distribution. 17. All of the following are true about time series methods except a. They discover a pattern in historical data and project it into the future. b. They involve the use of expert judgment to develop forecasts. c. They assume that the pattern of the past will continue into the future. d. Their forecasts are based solely on past values of the variable or past forecast errors. 18. Forecast errors a. are the difference in successive values of a time series b. are the differences between actual and forecast values c. should all be nonnegative d. should be summed to judge the goodness of a forecasting model