CQIB EXAM FINAL PAPER 2026
COMPREHENSIVE REVIEW MATERIAL
⫸ You need to move products from the production plants to their retail
outlets and there are possible warehouse stops in between. You are
seeking to reduce costs. Which method should you use to help in your
decision making?
Transshipment Supply Chain Model
Transportation Supply Chain Model
Assignment Supply Chain Model
Maximal Flow Supply Chain Model Answer: Transshipment Supply
Chain Model
⫸ Which of the following are not involved in decision making?
Identify and define the problem
Determine the set of alternative solutions
Determine the criteria that will be used to evaluate the alternatives
Evaluate the alternatives
Choose an alternative
Implement the selected alternative
Evaluate the results Answer: Implement the selected alternative
Evaluate the results
,⫸ The decision alternative with the highest expected value will always
result in the highest value if selected
True
False Answer: False
⫸ What is the name of the method the book uses to assign utility values
to dollar amounts? Answer: The lottery
⫸ Name three time-series patterns. Answer: Trend
Seasonal
Horizontal
Trend + Seasonal
⫸ Your boss tasks you with maximizing profit in your division of the
company. Your profit is constrained by the amount of material you have
to make the products your division produces. You know the recipes to
make the outputs. You know the estimates of the profit per unit of your
products, but you're worried they may not be reliable. What method
should you use to make your decision?
Linear Programming with Sensitivity Analysis
Linear Programming with Integers
Expected Profit Approach
,Expected Utility Approach Answer: Linear Programming with
Sensitivity Analysis
⫸ What is expected value? Answer: Weighted average of all possible
values.
⫸ What are the five steps involved in decision making? Answer:
Identify and define the problem
Determine alternatives
Determine criteria for evaluating alternative decisions
Evaluate alternative decisions
Choose alternative decision
⫸ Which method is a special case of another? Be sure to name both
methods and which is which. Answer: Exponential smoothing is a
special case of weighted moving average
⫸ Why would a decision maker use expected utility instead of expected
monetary value? Answer: The nonmonetary factors of a decision affect
the outcome
⫸ Two developments occurred in the post World War II era that led to
the growth of quantitative methods in nonmilitary applications. What
were they?
Numerous methodological developments
, Explosion in computing power
Government policy mandating their use
Increase in anti-science viewpoints Answer: Numerous methodological
developments
Explosion in computing power
⫸ In order to make enough product for the coming year, you need an
estimate of consumer demand. You have historical data going back
several years. Your data display no trend or seasonality and you feel that
more recent data is no more reliable than older data. What method
should you use to aid in your decision making?
Moving Average forecasting with a large number of time periods
included
Weighted moving average forecasting with a large weight on most
recent observations
Exponential Smoothing forecasting with a large smoothing constant
No text answer provided Answer: Moving Average forecasting with a
large number of time periods included
⫸ What are the two types of variables? Answer: Discrete
Continuous
COMPREHENSIVE REVIEW MATERIAL
⫸ You need to move products from the production plants to their retail
outlets and there are possible warehouse stops in between. You are
seeking to reduce costs. Which method should you use to help in your
decision making?
Transshipment Supply Chain Model
Transportation Supply Chain Model
Assignment Supply Chain Model
Maximal Flow Supply Chain Model Answer: Transshipment Supply
Chain Model
⫸ Which of the following are not involved in decision making?
Identify and define the problem
Determine the set of alternative solutions
Determine the criteria that will be used to evaluate the alternatives
Evaluate the alternatives
Choose an alternative
Implement the selected alternative
Evaluate the results Answer: Implement the selected alternative
Evaluate the results
,⫸ The decision alternative with the highest expected value will always
result in the highest value if selected
True
False Answer: False
⫸ What is the name of the method the book uses to assign utility values
to dollar amounts? Answer: The lottery
⫸ Name three time-series patterns. Answer: Trend
Seasonal
Horizontal
Trend + Seasonal
⫸ Your boss tasks you with maximizing profit in your division of the
company. Your profit is constrained by the amount of material you have
to make the products your division produces. You know the recipes to
make the outputs. You know the estimates of the profit per unit of your
products, but you're worried they may not be reliable. What method
should you use to make your decision?
Linear Programming with Sensitivity Analysis
Linear Programming with Integers
Expected Profit Approach
,Expected Utility Approach Answer: Linear Programming with
Sensitivity Analysis
⫸ What is expected value? Answer: Weighted average of all possible
values.
⫸ What are the five steps involved in decision making? Answer:
Identify and define the problem
Determine alternatives
Determine criteria for evaluating alternative decisions
Evaluate alternative decisions
Choose alternative decision
⫸ Which method is a special case of another? Be sure to name both
methods and which is which. Answer: Exponential smoothing is a
special case of weighted moving average
⫸ Why would a decision maker use expected utility instead of expected
monetary value? Answer: The nonmonetary factors of a decision affect
the outcome
⫸ Two developments occurred in the post World War II era that led to
the growth of quantitative methods in nonmilitary applications. What
were they?
Numerous methodological developments
, Explosion in computing power
Government policy mandating their use
Increase in anti-science viewpoints Answer: Numerous methodological
developments
Explosion in computing power
⫸ In order to make enough product for the coming year, you need an
estimate of consumer demand. You have historical data going back
several years. Your data display no trend or seasonality and you feel that
more recent data is no more reliable than older data. What method
should you use to aid in your decision making?
Moving Average forecasting with a large number of time periods
included
Weighted moving average forecasting with a large weight on most
recent observations
Exponential Smoothing forecasting with a large smoothing constant
No text answer provided Answer: Moving Average forecasting with a
large number of time periods included
⫸ What are the two types of variables? Answer: Discrete
Continuous
