1. A forecasting model that only uses historical data for the variable being forecast is called a
   1. Time series model
   2. Causal model
   3. Delphi model
   4. Variable model

1. Which of the following is a basic component of an inventory control system?
   1. Planning what inventory to stock and how to acquire it
   2. Forecasting the demand for parts and products
   3. Controlling inventory levels
   4. Developing and implementing feedback measurements for revising plans and forecasts
   5. All of the above are components of an inventory control system

1. A JIT system will usually result in
   1. A low annual holding cost
   2. Very few orders per year
   3. Frequent shutdowns in an assembly line
   4. High levels of safety stock

1. In an LP problem, at least one corner point must be an optimal solution if an optimal solution exists.
   1. True
   2. False

1. Which of the following does not represent a factor manager might consider when employing LP for production scheduling
   1. Labour capacity
   2. Space limitation
   3. Product demand
   4. Risk assessment
   5. Inventory costs