Name: NOHORA TATIANA SALAZAR VARGAS

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) A "Little Sis" restaurant has been opened as a prototype to test the concept of a smaller facility with a limited menu.
Experience during the first two years was as follows:

The average sale is $10 per customer. Use the following partially completed graph to determine the break-even quantity
graphically. Then refine your solution by solving it algebraically. (Show your work for credit.)

1) A
A) The break-even quantity is more than 70,000 customer visits.
B) The break-even quantity is fewer than or equal to 30,000 customer visits.
C) The break-even quantity is more than 30,000 customer visits and fewer than or equal to 50,000 visits.
D) The break-even quantity is more than 50,000 visits and fewer than or equal to 70,000 visits.
Table 11.3
Durham Toy, Inc. has five distribution centers at the location coordinates given as follows. The monthly demand at each
center is also given.
DC
A
B
C
D
E

Coordinates
(10, 12)
(25, 30)
(8, 15)
(11, 20)
(25, 6)

Demand
40
25
30
10
20

2) Use the information in Table 11.3. What are the x and y coordinates for the center of gravity?
A) x <14, y < 15
B) x < 14, y 15
C) x 14, y 15
D) x 14, y < 15

2) B

3) The Hunan Restaurant wishes to locate a new facility. Based on the following subjective criteria, where should the new
facility be located? (Very good = 5, Good = 4, Fair = 3, Poor = 2, and Very poor = 1)

3) A
A) B

B) D

C) A

D) C

Scenario 12.1
The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume
assemblies, the XO-01, has an estimated annual demand of 8,000 units. Talbot estimates the cost to place an order is $50,
and the holding cost for each assembly is $20 per year. The company operates 250 days per year.
4) Use the information in Scenario 12.1. What is the economic order quantity for the XO-01?
A) Less than or equal to 100 units
B) Greater than 180 units but less than or equal to 250 units
C) Greater than 100 units but less than or equal to 180 units
D) Greater than 250 units

4) B

Table 13.5
The manager of a pizza shop must forecast weekly demand for special pizzas so that he can order pizza shells weekly.
Recent demand has been:

5) Use the information from Table 13.5. Using a three-week moving average, what is the forecast for week 7? 5) D
A) 55

B) 56

C) 58

D) 57

Table E.2
Sagebrush Company has four warehouses (A, B, C, and D) that require monthly shipments of 250, 200, 300, and 200 units
per month, respectively. Its three plants (1, 2, and 3) have monthly capacities of 300, 400, and 250, respectively. Plant
capacities, warehouse needs and shipping costs (in $) are shown in the following initial transportation method tableau.
For example, the shipping cost from Plant 1 to Warehouse A is $17 per unit. A second table showing POM for Windows
results from running this transportation problem is shown below the tableau.

6) Use the information in Table E.2. The low cost solution indicates a total cost of: 6) B
A) $1,150.
B) $14,750.
C) $950.
D) The low cost solution is not provided in Table E.2.
7) The diagram below illustrates data with a

7) A
A) positive correlation coefficient.
B) negative correlation coefficient.
C) zero correlation coefficient.
D) correlation coefficient equal to +1.

E) none of the above

8) Enrollment in a particular class for the last four semesters has been 120, 126, 110, and 135. The best forecast of
enrollment next semester, based on a three-semester moving average, would be 8) C
A) 126. B) 125. C) 120. D) 135. E) 123.
9) Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the
year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per
year and the lead-time is 5 days. If Mark orders 200 units each time he places an order, what would his average inventory
be (in units)? 9) B
A) 200
B) 60
C) 100
D) 120
E) none of the above
A company is considering two suppliers for the purchase of a part needed for manufacturing. Particulars are as follows:
SUPPLIER A: Fixed Costs = $9,000 / year
Variable Cost / Unit = $2
SUPPLIER B:
Fixed Costs = $3,000 / year
Variable Cost / Unit = $5
10) What is the annual break-even quantity for choosing between the two suppliers?
A) 12,000 units B) 1,000 units C) 6,000 units D) 2,000 units

10) D

11) California Manufacturing, Inc. is now evaluating two new product ideas, and management has decided to apply the
preference matrix method. The following table shows five criteria with different weights and individual scores of each
product idea. If management has established a threshold of 800, which product(s) should be accepted for further
development?

11) B
A) Product A B) Product B
C) Both products A and B

D) Neither product A nor B

12) An operations manager has developed this decision tree to evaluate the alternatives for a planned expansion. If the
probability of high demand is 0.6, what is the best course of action?

12) A
A) Alternative A

B) Alternative B C) Alternative C

D) Alternative D

Table 11.5
Paul's Pretzels manufactures and distributes gourmet pretzels for limited retail sales. Paul has determined the "demand
points" and their relative locations as follows:

13) Use the information in Table 11.5. If Paul desires to locate a manufacturing facility at the center of gravity, what would
be the x and y coordinates of the facility?
13) C
A) x 14, y 14

B) x 14, y 14

C) x 15, y 14

D) x < 15, y 15

14) Who is credited with pioneering the principles of the scientific approach to management?
A) Adam Smit
B) John R. Locke
C) Frederick W. Taylor
D) Henri Fayol
E) Charles Babbage

14) C

15) Expressing profits through the relationship among unit price, fixed costs, and variable costs is an example of
A) a sensitivity analysis model.
B) a postoptimality relationship.
C) a quantitative analysis model.
D) a parameter specification model.
E) none of the above

15) E