Please do not use AI to solve or explain answers.

Question #: 19

The following information available regarding a particular component:

Component price 30

Component usage 5,000 per month

Cost of placing an order 20

Cost of storing components for one year 1 % of stock value

The economic order quantity for the component (to the nearest unit) is:

A. 8,944 units

B. 861 units

C. 2,981 units

D. 15,492 units

E. none of the above

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Question #: 20

The latest finish time for an activity is found during the backward pass through the network. The latest finish time is equal to

A. the largest LF of the activities for which it is an immediate predecessor.

B. the smallest LF of the activities for which it is an immediate predecessor.

C. the largest LS of the activities for which it is an immediate predecessor.

D. the smallest LS of the activities for which it is an immediate predecessor.

E. none of the above

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Question #: 21

The Maximax decision criterion would tend to be used by a decision maker who is optimistic

A. True

B. False

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Question #: 22

The reorder point is

A. the quantity that is reordered each time an order is placed.

B. the amount of inventory that would be needed to meet demand during the lead time.

C. equal to the average inventory when the EOQ assumptions are met.

D. assumed to be zero if there is instantaneous replenishment.

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Question #: 23

The standard deviation for the PERT project is approximately

A. the square root of the sum of the variances along the critical path.

B. the sum of the critical path activity standard deviations.

C. the square root of the sum of the variances of the project activities.

D. all of the above.

E. none of the above.

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Question #: 24

Which of the following is a basic component of an inventory control system?

A. planning what inventory to stock and how to acquire it

B. forecasting the demand for parts and products

C. controlling inventory levels

D. developing and implementing feedback measurements for revising plans and forecasts

E. all of the above are components of an inventory control system

F. NONE OF THE ABOVE

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Question #: 25

Which of the following is a valid use of inventory?

A. the decoupling function

B. to take advantage of quantity discounts

C. to avoid shortages and stockouts

D. to smooth out irregular supply and demand

E. all of the above are valid uses of inventory

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Question #: 26

What are the important assumptions of the Economic Order Quantity Model

A. Demand is known , constant, and independent.

B. Lead time is known and constant

C. Only variable costs are ordering and holding

D. Stockouts can be completely avoided

E. All of the above

F. None of the above

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Question #: 27

Safety stock is the same asa buffer stock

A. True

B. False

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Question #: 28

When the exponential smoothing constant is applied to a time series, a smaller value for the smoothing constant will more strongly dampen fluctuations in the original series.

A. True

B. False

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Question #: 29

YEAR ACTUAL SALES

0 12

1 15

2 19

3 23

4 18

Using a two-year moving average forecast model, what is the forecasted sales for year 3?

A. 17

B. 14

C. 21

D. 23

E. none of the above

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Question #: 30

YEAR ACTUAL SALES

0 12

1 15

2 19

3 23

4 18

Using a three-year moving average forecast model, what is the forecasted sales for year 4?

A. 17

B. 19

C. 21

D. 23

E. none of the above

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Question #: 31

YEAR ACTUAL SALES

0 12

1 14

2 19

3 23

4 18

Using a naive forecast model, what is the forecasted sales for year 3?

A. 12

B. 14

C. 19

D. 23

E. none of the above