Midterm

Question 1

Step one of graphing

Answer 1

set one variable to zero then solve for other, repeat opposite

Question 2

step two of graphing

Answer 2

plot lines according to coordinates found in step one

Question 3

Rule of Lines

Answer 3

Must be labelled correctly and hash lines to indicate greater or less than

Question 4

feasible region

Answer 4

the space that lies under the constraint lines that satisfies all constraints

Question 5

step three of graphing

Answer 5

find points of intersection between constraint lines on the border of the feasible region

Question 6

step four of graphing

Answer 6

apply the coordinates from step three into the maximizing equation to find profit

Question 7

step five of graphing

Answer 7

find iso-profit lines with the maximizing equation and profit given. set one variable to zero to solve, vice versa

Question 8

iso-profit line rule

Answer 8

must be labelled (profit=30000) and must be a dashed line. all iso=profit lines are parallel

Question 9

solution we want

Answer 9

we want the feasible answer to be greater than the optimal answer. the optimal point we choose must also be feasible

Question 10

if the optimal point is between grid lines

Answer 10

1. multiply one line equation by the first number of the second equation (X+Y=200,1.2X+0.75Y=180 becomes 1.2X+1.2Y=240, 1.2X+0.75Y=180).
2. then subtract the second equation from the first.
   1.2X+1.2Y=240
   -1.2X+0.75Y=180
   >0.45Y=60
3. Then solve for your variables for the optimal point
   Y=133.33
   X=66.67
4. input the optimal point into the objective function for the optimal profit

Question 11

final step of graphing

Answer 11

always finalize answer in words. (the optimal solution is to make 66.67 of X and 133.33 of Y for a profit of 000.

Question 12

calculating forecasting error

Answer 12

Actual-Forecasted= (et)

Question 13

calculating absolute error in forecasting

Answer 13

|et| (absolute value of the error)

Question 14

calculating the squared error in forecasting

Answer 14

et^2 (squaring the error)

Question 15

simple moving error

Answer 15

(sum of actual value for n periods)/n

Question 16

weighted moving average

Answer 16

sum of (assigned weight x actual value) for n periods

Question 17

exponential smoothing

Answer 17

alpha(actual value)+(1-alpha)(forecasted value)

Question 18

BIAS

Answer 18

average error = (sum of all et)/n

Question 19

MAD

Answer 19

mean absolute value = (sum of |et|)/n

Question 20

RMSE

Answer 20

root of mean square error= sqrt[(et^2)/n]

Question 21

seasonal indicies

Answer 21

(total of n seasons/n)/average demand per season

Question 22

average demand per season

Answer 22

sum of n seasons/n

Question 23

What is forecasting?

Answer 23

the process of predicting a future event

Question 24

underlying basis of all business decisions

Answer 24

-production
-inventory
-personnel
-facilities

Question 25

importance of forecasting

Answer 25

• schedule the right amount of workers to handle expected labour volume by analyzing
  -avoid over or under stocking by forecasting consumer demands
  -meet customer demands efficiently and minimize production bottlenecks
  -maximize revenue by determining optimal pricing
  -ensure company has enough liquidity to cover daily operating expenses while also meeting long term financial goals

Question 26

forecasting time horizons

Answer 26

short-range:
- up to one year, generally less than 3 months
-purchasing, job scheduling, production levels
medium-range
-3 months to 3 years
-sales and production planning, budgeting
long-range
-3+ years
-new product planning, facility location, research and development