QUESTION 6
1.
Weekly sales of copy paper at ABC Suppliers are in the table below. Which forecasting method is more accurate to forecast week 8 sale? Initial forecast for week 1 was 17 cases.
|
Week |
Sales (cases) |
|
1 |
18 |
|
2 |
23 |
|
3 |
31 |
|
4 |
32 |
|
5 |
18 |
|
6 |
16 |
|
7 |
24 |
Answer
|
3-weeks moving average |
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|
exponential smoothing-Alpha=0.1 |
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exponential smoothing-Alpha=0.9 |
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|
Weighted moving average. Weights of 0.5 for the most recent period, then 0.3 and 0.2 for previous two periods |
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|
Regression analysis |
QUESTION 8
1.
ABC Inc. started producing its new line of parts at the end of year 0. In year 1, it produced 45000 parts at a total cost of $660,000. In year 2, its production increased to 85,000 parts at a total cost of $1,140,000. If the Fixed cost and variable cost per unit are the same, what must be the variable cost per part (c) and the fixed cost (F)?
Answer
|
F is less than $80,000, and c is greater than $7 |
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|
F is greater than $60,000, and c is less than $9 |
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F is greater than $100,000, and c is greater than $13 |
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|
F is greater than $110,000, and c is less than $16 |
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|
None of the above are correct |
5 points
5 points
QUESTION 10
1. The ABC Company is screening three new product ideas. Only one idea must be selected. The following estimates have been made for the performance criteria that management feels are most important, along with the weight of each in decision making. What are the best and worst alternatives?
|
Estimated Rating |
|||||
|
|
Performance criterion |
Weight |
A |
B |
C |
|
1 |
Demand uncertainty |
0.1 |
0.3 |
0.9 |
0.2 |
|
2 |
Similarity to present products |
0.15 |
0.7 |
0.8 |
0.6 |
|
3 |
Expected return on investment |
0.35 |
1 |
0.4 |
0.7 |
|
4 |
Compatibility with current process |
0.25 |
0.4 |
0.7 |
0.6 |
|
5 |
Competitive advantage |
0.15 |
0.4 |
0.6 |
0.5 |
Answer
|
A is best, and B is worst |
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|
B is best, and C is worst |
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|
B is best, and A is worst |
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|
C is best, and A is worst |
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|
None of the above is correct |
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