Part 1. Multiple- Choice Questions (6 marks) 1- Production & Operations strategic thinking is used to help find the best product line for the marketplace and then to make these products at the_____________. a- Lowest cost. b- Highest quality. c- Maximum productivity level. d- All of the above. 2- Decisions related to the production process are ______________. a- Structure. b- Infrastructure. c- Product Technology. d- Process Technology. 3- When managers Focus on specific day-to-day issues like resource needs, schedules, & quantities to produce, this indicates_____________ Decisions. a- Strategic. b- Tactical. c- Trade-offs. d- Competitive.

Inventory comes in many shapes and sizes, explain two types of inventory. Question (2): Answer the following problem: (10 marks) Given five months of average monthly temperatures and corresponding monthly attendance, compute a linear regression equation of the relationship between the two. If next months average temperature is forecast to be 45 degrees, use the linear regression equation to develop a forecast. Month Average Temperature Resort Attendance (In Thousands) 1 24 43 2 41 31 3 32 39 4 30 38 5 38 35 Question (3): Answer the following problem: ( 10 marks) The owners of sweet tooth bakery have determined that they need to expand their facility in order to meet their increased demand for baked goods. The decision has come down whether to expand now with a large facility or to undertake small expansion. Management has estimated the following: - The demand when being high is 0.70 - The demand when being Low is 0.30 Profits for each alternative have been estimated: - Large expansion has an estimated profitability of either $80 000 or $50 000, depending on whether demand turns out to be high or low. - Small expansion has a profitability of $40 000 assuming that demand is low. - Small expansion with an occurrence of high demand would require considering whether to expand further. If the bakery expands at this point, the profitability is expected to be $70 000. If it does not expand further, the profitability is expected to be $50 000. Required: a- Draw a decision tree diagram and add the information that you are given.(5 marks) b- Compute the (EV) of the small and large expansion and determine what decision should the software developing corporation

make? (5 marks)

Question (4): Answer the following problem: ( 10 marks) Find the Economic Order Quantity (EOQ) and the reorder point, given the following information: Annual Demand = 20 000 units.

Ordering cost = 150$ per order. Annual holding cost = $ 12 per unit. Lead time = 10 days. The company operates 250 days /year. Daily demand = 40 units/day.

Question (1): Answer the following questions: ( 10 marks) Part 1. Multiple-Choice Questions (6 marks) 1- Production & Operations strategic thinking is used to help find the best product line for the marketplace and then to make these products at the - Lowest cost. b- Highest quality - Maximum productivity level. d- All of the above. 2- Decisions related to the production process are 2- Structure. b- Infrastructure C- Product Technology d- Process Technology 3- When managers Focus on specific day-to-day issues like resource needs, schedules, & quantities to produce this indicates Decisions. a- Strategic b- Tactical c- Trade-offs. d- Competitive. Part 2. Short answer questions: ( 4 marks) Inventory comes in many shapes and sizes, explain two types of inventory. Question (2): Answer the following problem: (10 marks) Given five months of average monthly temperatures and corresponding monthly attendance, compute a linear regression equation of the relationship between the two. If next month's average temperature is forecast to be 45 degrees, use the linear regression equation to develop a forecast. Average Resort Temperature Attendance (In Thousands) Month 2 3 4 5 24 41 32 30 38 43 31 39 38 35 Question following marks) (3); Answer problem: the 10 The owners of sweet tooth bakery have determined that they need to expand their facility in order to meet their increased demand for baked goods. The decision has come down whether to expand now with a large facility or to undertake small expansion. Management has estimated the following: The demand when being high is 0.70 - The demand when being Low is 0.30 Profits for each alternative have been estimated: - Large expansion has an estimated profitability of either $80 000 or $50 000, depending on whether demand turns out to be high or low. Small expansion has a profitability of $40 000 assuming that demand is low. Small expansion with an occurrence of high demand would require considering whether to expand further. If the bakery expands at this point, the profitability is expected to be $70 000. If it does not expand further, the profitability is expected to be $50 000 Required: a- Draw a decision tree diagram and add the information that you are given (5 marks) b- Compute the (EV) of the small and large expansion and determine what decision should the software developing corporation make? (5 marks) Question (4): Answer the following problem: ( 10 marks) Find the Economic Order Quantity (EOQ) and the reorder point, given the following information: Annual Demand = 20 000 units. Ordering cost = 1505 per order. Annual holding cost = $ 12 per unit. Lead time = 10 days. The company operates 250 days /year. Daily demand = 40 units/day