2 . An 80% learning curve means that:

1. The incremental time for each unit is 80% of the time of the unit before it
2. The cumulative average time is 80% of the cumulative average time at the previous unit
3. As production doubles, the incremental time for a unit is 80% of the time at the previous doubling point
4. As production doubles, the cumulative average time is 80% of the time at the previous doubling point

3. The purpose of economic order quantity (EOQ) is to minimize

1. The safety stock
2. The inventory quantities
3. The sum of the demand costs and the back-log costs
4. The sum of the ordering costs and holding (carrying) costs

4. The term constraints in a linear programming model generally refers to:

1. Costs
2. Inefficiencies
3. Scarce resources
4. Dependent variables

5. The term expected value refers to the

1. Value which would be assigned to a variable if problem were to be treated in a deterministic manner
2. Most likely single outcome selected from among a number of possible alternatives
3. Tails of a normal probability distribution
4. Mean value of a variable