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Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Which of the following forecasting methods puts the least weight on the most recent time series value? a. exponential smoothing with a = .3 b. exponential smoothing with a = 2 c. moving average using the most recent 4 periods d. moving average using the most recent 3 periods 11 2 The EOQ model a. determines only how frequently to order. b. considers total cost. c. minimizes both ordering and holding costs. d. All of the alternatives are correct. 3. Which of the following is a qualitative forecasting method? a. trend projection b. time series method c. smoothing method d. Delphi method 4. The critical path a. is any path that goes from the starting node to the completion node. b. is a combination of all paths. c. is the shortest path. d. is the longest path. 5 What queue discipline is assumed by the waiting line models presented in the textbook? a. first come first-served. b. last-in first-out. c. shortest processing time first. d. No discipline is assumed. 6 If arrivals occur according to the Poisson distribution every 20 minutes, then which is NOT true? a. 2. = 20 arrivals per hour b. 1-3 arrivals per hour c. 1 = 1/20 arrivals per minute d. 2. = 72 arrivals per day 7 Seasonal components a. cannot be predicted. b. are regular repeated patterns. c. are long runs of observations above or below the trend line. d. reflect a shift in the series over time. 8 Inventory a. is held against uncertain usage so that a supply of items is available if needed. b. constitutes a small part of the cost of doing business. c. is not something that can be managed effectively. d. All of the alternatives are correct. 9. Short-term, unanticipated, and nonrecurring factors in a time series provide the random variability known as a. uncertainty. b. the forecast error. c. the residuals. d. the irregular component. 10 The parts of a network that represent the origins are a. the capacities b. the flows c. the nodes d. the arcs 11. Time series methods a. discover a pattern in historical data and project it into the future. b. include cause-effect relationships. are useful when historical information is not available. d. All of the alternatives are true. c. 11. Time series methods a. discover a pattern in historical data and project it into the future. b. include cause-effect relationships. c. are useful when historical information is not available. d. All of the alternatives are true. 12. In deciding which activities to crash, one must a. crash all critical activities. b. crash largest-duration activities. c. crash lowest-cost activities. d. crash activities on the critical path(s) only. 13. For inventory systems with constant demand and a fixed lead time, a. the reorder point = lead-time demand. b. the reorder point> lead-time demand. c. the reorder point d. All of the alternatives are correct. 20 In a waiting line situation, arrivals occur, on average, every 10 minutes, and 10 units can be received every hour. What are i. and u? a. 2 = 10,u = 10 b. 1. = 6, u = 6 c. 2-6, u = 10 d. 2 = 10, u = 6