OPMA 3306 Final questions with accurate answers
A company has actual unit demand for four consecutive years of 100,
105, 135, and 150. The respective forecasts were 120 for all four years.
Which of the following is the resulting MAD value that can be
computed from this data? Ans🗸🗸🗸 MAD = ABS((100-120)+(105-
120)+(135-120)+(150-120))/4 = 80/4 =20
A company has recorded the last six days of daily demand on a single
product they sell. Those values are 37, 115, 93, 112, 73, and 110. The
time from when an order is placed to when it arrives at the company
from its vendor is 3 days. Assuming the basic fixed order quantity
inventory model fits this situation and no safety stock is needed, which
of the following is the reorder point (R)? Ans🗸🗸🗸 270 Avg Demand is
(37+115+93+112+73+110)/6= 90 → Lead Time = 3 days → 90*3=270
A company hires you to develop a linear regression forecasting model.
Based on the company's historical sales information, you determine the
intercept value of the model to be 1,200. You also find the slope value is
minus 50. If after developing the model you are given of x=10, which of
the following is the resulting forecast value using this model? Ans🗸🗸🗸
The linear regression line is of the form Y = a + bX, where Y is the
value of the dependent variable that we are solving for, a is the Y
intercept, b is the slope, and X is the independent variable. Hence, Y =
1,200 + (-50) x 10 = 700.
A company wants to forecast demand using the weighted moving
average. If the company uses two prior yearly sales values (i.e., year
2012=110 and year 2013=130), and we want to weight year 2012 at 10%
and year 2013 at 90%, which of the following is the weighted moving
, average forecast for year 2014? Ans🗸🗸🗸 Forecast for 2014 = (110x0.1)
+ (130x0.9) = 11 + 117 = 128
Assuming no safety stock, what is the re-order point (R) given an
average daily demand of 50 units, a lead time of 10 days and 625 units
on hand? Ans🗸🗸🗸 500 50*10=500
Design of experiments is a statistical methodology often used in six-
sigma projects. It aims to accomplish which of the following? Ans🗸🗸🗸
Determine the cause and effect relationships between process variables
and output
For which of the following should we use a "p" chart to monitor process
quality? Ans🗸🗸🗸 Defective electrical switches
From an operational perspective yield management is most effective
under which of the following circumstances? Ans🗸🗸🗸 Inventory is
perishable
Given a prior forecast demand value of 230, a related actual demand
value of 250, and a smoothing constant alpha of 0.1, what is the
exponential smoothing forecast value for the following period?
Ans🗸🗸🗸 Forecast = 230 + 0.1 x (250-230) = 232
How many Avis buses are traveling to and from the airport? Ans🗸🗸🗸
10 Throughput rate=30 per hour Throughput time is 20/60=1/3 hours
TT=WIP/TR or TT*TR=WIP → 30*1/3 = 10
A company has actual unit demand for four consecutive years of 100,
105, 135, and 150. The respective forecasts were 120 for all four years.
Which of the following is the resulting MAD value that can be
computed from this data? Ans🗸🗸🗸 MAD = ABS((100-120)+(105-
120)+(135-120)+(150-120))/4 = 80/4 =20
A company has recorded the last six days of daily demand on a single
product they sell. Those values are 37, 115, 93, 112, 73, and 110. The
time from when an order is placed to when it arrives at the company
from its vendor is 3 days. Assuming the basic fixed order quantity
inventory model fits this situation and no safety stock is needed, which
of the following is the reorder point (R)? Ans🗸🗸🗸 270 Avg Demand is
(37+115+93+112+73+110)/6= 90 → Lead Time = 3 days → 90*3=270
A company hires you to develop a linear regression forecasting model.
Based on the company's historical sales information, you determine the
intercept value of the model to be 1,200. You also find the slope value is
minus 50. If after developing the model you are given of x=10, which of
the following is the resulting forecast value using this model? Ans🗸🗸🗸
The linear regression line is of the form Y = a + bX, where Y is the
value of the dependent variable that we are solving for, a is the Y
intercept, b is the slope, and X is the independent variable. Hence, Y =
1,200 + (-50) x 10 = 700.
A company wants to forecast demand using the weighted moving
average. If the company uses two prior yearly sales values (i.e., year
2012=110 and year 2013=130), and we want to weight year 2012 at 10%
and year 2013 at 90%, which of the following is the weighted moving
, average forecast for year 2014? Ans🗸🗸🗸 Forecast for 2014 = (110x0.1)
+ (130x0.9) = 11 + 117 = 128
Assuming no safety stock, what is the re-order point (R) given an
average daily demand of 50 units, a lead time of 10 days and 625 units
on hand? Ans🗸🗸🗸 500 50*10=500
Design of experiments is a statistical methodology often used in six-
sigma projects. It aims to accomplish which of the following? Ans🗸🗸🗸
Determine the cause and effect relationships between process variables
and output
For which of the following should we use a "p" chart to monitor process
quality? Ans🗸🗸🗸 Defective electrical switches
From an operational perspective yield management is most effective
under which of the following circumstances? Ans🗸🗸🗸 Inventory is
perishable
Given a prior forecast demand value of 230, a related actual demand
value of 250, and a smoothing constant alpha of 0.1, what is the
exponential smoothing forecast value for the following period?
Ans🗸🗸🗸 Forecast = 230 + 0.1 x (250-230) = 232
How many Avis buses are traveling to and from the airport? Ans🗸🗸🗸
10 Throughput rate=30 per hour Throughput time is 20/60=1/3 hours
TT=WIP/TR or TT*TR=WIP → 30*1/3 = 10
