SECTION A. 10 points each.
Suppose you are
to forecast demand for the following products. For which good(s) would it be important to
consider the concept of
'product life cycle"?
b. Fresh flowers
a and b
e. a, b, andc
2. Rank the techniques below, based on how much they smooth the data (from smoothest to least smoothed):
12-month simple moving average
3-month simple moving average
single exponential smoothing with alpha:; .6
iv. single exponential smoothing with alpha :: .2
e. iii, ii, iv, i
None of the above
of manufacturing operation below is most fleXible in the types of outputs it can produce?
c. Batch manufacturer
4. Which firm below would be most likely to use "layout by process" in designing its operations?
a. A manufacturer of computer notebooks
c. Both of the above
d. Neither of the above
5. Cheryl used single exponential smoothing to forecast weekly attendance at her theater troupe's performances, with alpha
values of 0, .2, .4, .6, .8 and I. She found that the mean squared error was smallest when alpha
.6, and the mean forecast
error was smallest when alpha
I. What does this imply about attendance at her theater?
probably a trend in the data.
To predict this week's attendance, she should only consider last week's attendance.
c. Both a and b.
d. Neither a nor b.
6. Damon is considering opening a coffee house in Davis. The location he is considering has a monthly traffic count of
400,000 vehicles and a yield factor of .0 1. The average customer is expected to spend $7 per visit, and the average cost of
the merchandise they buy is $4. Carlos will have to renovate and furnish the interior of the facility to suit his needs; these
be financed overtime, with a monthly payment ofSI 000. The landlord is asking
this location. What does this information suggest?