OPRE 3310 EXAM 1 STUDY GUIDE
Feedback - Answers :Measurements taken at various points in the transformation
process
Control - Answers :The comparison of feedback against previously established
standards to determine if corrective action is needed
Goods-Service Continuum - Answers :Products are typically neither purely service-
based or purely goods-based
System Design - Answers :determine parameters of system operation; usually require
long-term commitment of resources
System Operation - Answers :generally tactical and operational decisions
ex. Management of Personnel, Inventory Management/Control, Scheduling, Project
Management, Quality Assurance
Productivity formula - Answers :Output / Input
Partial Measures formulas - Answers :Output / Single input
Output / Labor
Output / Capital
Multitfactor Measures formula - Answers :Output / Multiple Inputs
Output / Labor + Machine
Output / Labor + Capital + Energy
Total Measure Productivity formula - Answers :Goods/Services Produced / All inputs
used to produce them
Productivity Growth formula - Answers :(Current Productivity - Previous Productivity) /
Previous Productivity
Forecast Error - Answers :Error = Actual - Forecast
Mean Absolute Deviation formula
*MAD* - Answers :(Sum of abs(Actuals - Forecasts)) / n
Mean Squared Deviation
*MSE* - Answers :(Sum of [Actual - Forecast]^2) / (n - 1)
, Mean Absolute Percentage Error
*MAPE* - Answers :(Sum of [abs(Actual - Forecast / Actual)] / n) x 100
Moving Average - Answers :Forecast of period t = (Actual of t-n...+ Actual of t-2 + Actual
of t-1) / n
Fewer data points = more responsive/sensitive
More data points = less responsive/sensitive
Weighted Moving Average - Answers :Forecast of period t = (Weight of t * Actual of t) +
(Weight of t-1 * Actual of t-1) ...+ (Weight of t-n * Actual of t-n)
Exponential Smoothing - Answers :Forecast of period t = Forecast of Previous Period t-
1 + Smoothing Constant * (Actual of Previous Period - Forecast of Previous Period)
Linear Trend - Answers :Forecast of Period t = Value of Forecast at t=0 + (Slope of Line
* Specified # of time periods)
Reliability (Independent) - Answers :Probability of Part 1 * Probability of Part 2
Reliability (Parallel/backup parts) - Answers :[Reliability of Part 1 + ( 1 - Reliability of
Part 1 )] * Reliability of Part 2
Reliability (when Activated) - Answers :If two or more events are involved and success
is defined as the probability that at least one of them occurs, the probability of success
= 1 - P (all fail)
Normal Distribution - Answers :( T - Mean wear out time) / Standard Deviation of Wear-
Out Time
Efficiency - Answers := Actual Output / Effective Capacity
Utilization - Answers := Actual Output / Design Capacity
Capacity Cushion - Answers := 100% - Utilization
extra capacity used to offset demand uncertainty
Processing Requirements - Answers :# of Required Machines = Sum ( Standard
Processing time for product i * Demand for product i ) / Processing Time Available
Break-Even Point - Answers := Fixed Costs / (Revenue per Unit - Variable Costs)
Scope of Operations Management - Answers :Forecasting
Capacity planning
Facilities and layout
Feedback - Answers :Measurements taken at various points in the transformation
process
Control - Answers :The comparison of feedback against previously established
standards to determine if corrective action is needed
Goods-Service Continuum - Answers :Products are typically neither purely service-
based or purely goods-based
System Design - Answers :determine parameters of system operation; usually require
long-term commitment of resources
System Operation - Answers :generally tactical and operational decisions
ex. Management of Personnel, Inventory Management/Control, Scheduling, Project
Management, Quality Assurance
Productivity formula - Answers :Output / Input
Partial Measures formulas - Answers :Output / Single input
Output / Labor
Output / Capital
Multitfactor Measures formula - Answers :Output / Multiple Inputs
Output / Labor + Machine
Output / Labor + Capital + Energy
Total Measure Productivity formula - Answers :Goods/Services Produced / All inputs
used to produce them
Productivity Growth formula - Answers :(Current Productivity - Previous Productivity) /
Previous Productivity
Forecast Error - Answers :Error = Actual - Forecast
Mean Absolute Deviation formula
*MAD* - Answers :(Sum of abs(Actuals - Forecasts)) / n
Mean Squared Deviation
*MSE* - Answers :(Sum of [Actual - Forecast]^2) / (n - 1)
, Mean Absolute Percentage Error
*MAPE* - Answers :(Sum of [abs(Actual - Forecast / Actual)] / n) x 100
Moving Average - Answers :Forecast of period t = (Actual of t-n...+ Actual of t-2 + Actual
of t-1) / n
Fewer data points = more responsive/sensitive
More data points = less responsive/sensitive
Weighted Moving Average - Answers :Forecast of period t = (Weight of t * Actual of t) +
(Weight of t-1 * Actual of t-1) ...+ (Weight of t-n * Actual of t-n)
Exponential Smoothing - Answers :Forecast of period t = Forecast of Previous Period t-
1 + Smoothing Constant * (Actual of Previous Period - Forecast of Previous Period)
Linear Trend - Answers :Forecast of Period t = Value of Forecast at t=0 + (Slope of Line
* Specified # of time periods)
Reliability (Independent) - Answers :Probability of Part 1 * Probability of Part 2
Reliability (Parallel/backup parts) - Answers :[Reliability of Part 1 + ( 1 - Reliability of
Part 1 )] * Reliability of Part 2
Reliability (when Activated) - Answers :If two or more events are involved and success
is defined as the probability that at least one of them occurs, the probability of success
= 1 - P (all fail)
Normal Distribution - Answers :( T - Mean wear out time) / Standard Deviation of Wear-
Out Time
Efficiency - Answers := Actual Output / Effective Capacity
Utilization - Answers := Actual Output / Design Capacity
Capacity Cushion - Answers := 100% - Utilization
extra capacity used to offset demand uncertainty
Processing Requirements - Answers :# of Required Machines = Sum ( Standard
Processing time for product i * Demand for product i ) / Processing Time Available
Break-Even Point - Answers := Fixed Costs / (Revenue per Unit - Variable Costs)
Scope of Operations Management - Answers :Forecasting
Capacity planning
Facilities and layout
