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Question 1 of 16 4.0 Points

Six (6) samples of size five (5) were used to collect the data presented below:
sample number

1

2

3

4

5

6
sample mean (x-bar)

8.0

8.1

7.9

8.2

7.8

8.0
sample range (R)

1.8

2.4

1.9

1.8

2.1

2.0

The lower control limit (LCL) an x-bar-chart is.
A. LCL = 7.800
B. LCL = 7.034
C. LCL = 6.846
D. LCL = 21.000
E. LCL = 0.000
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Question 2 of 16 4.0 Points

Twenty samples of size six (6) were collected for a variable measurement. Determine the upper control limit (UCL) and lower control limit (LCL) for an R-chart if the average range, Rbar, is 4.4.
A. LCL = 0.3344, UCL = 9.3016
B. LCL = 0.0000, UCL = 1.4696
C. LCL = 1.826, UCL = 6.974
D. LCL = 0.0000, UCL = 8.8176
E. LCL = 0.0000, UCL = 176.3520
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Question 3 of 16 4.0 Points
Twenty-five samples of size thirty (30) were collected and a total of 48 nonconforming items were found yielding p-bar = 0.064. The three sigma upper control limit (UCL) for a p control chart would be
A. 0.833
B. 0.211
C. 0.198
D. 0.091
E. None of the above
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Question 4 of 16 2.0 Points

A company has calculated its CFE to be 700 and its MADt is 20. Which one of the following is the resulting TS?
A. About 0.05
B. About 20
C. About 35
D. More than 35
E. Cannot be calculated based on this information
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Question 5 of 16 2.0 Points
If you were trying to select a forecasting model based on a MAD statistic, which of the following MAD values reflects the most accurate model?
A. 0.425
B. 0.877
C. 2.000
D. 4.599
E. 100
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Question 6 of 16 3.0 Points

Given the following weekly demand and forecast figures:
Week

Demand

Forecast
1

20

40
2

25

20
3

35

30

The MAD is:
A. 0
B. -10
C. 30
D. 10
E. none of the above
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Question 7 of 16 3.0 Points


Given the following weekly demand and forecast figures:

Week

Demand

Forecast
1

20

40
2

25

20
3

35

30

The mean square error is:
A. -10
B. 15
C. 30
D. 150
E. 450
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Question 8 of 16 3.0 Points


A company wants to forecast its demand using the Simple Moving Average and has the following demand data.

Week

Demand
1

120
2

100
3

140
4

120
5

200


Which of the following is the four-period moving average forecast for period 6?


A. 120
B. 136
C. 140
D. 170
E. none of the above
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Question 9 of 16 3.0 Points
A company wants to forecast its demand using the Weighted Moving Average. The company uses two prior yearly sales values (i.e., Year 1 = 110 and Year 2 = 130). Using weights 0.9 and 0.1 with largest weight to demand assigned to the most recent period, which of the following is the two-period Weighted Moving Average forecast for Year 3?
A. 112
B. 117
C. 120
D. 128
E. none of the above.
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Question 10 of 16 3.0 Points
In Period 7 the exponentially smoothed forecast was 50 and the actual demand was 60. If alpha = 0.1, what is the exponentially smoothed forecast for Period 8?
A. 49
B. 50
C. 51
D. 59
E. 61
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Question 11 of 16 3.0 Points

Monthly demand for a product has been as follows in the last 2 months.
July

60 units
August

62 units

What is the forecast for September using exponential smoothing with alpha = 0.2 if the forecast for July was 50 units?
A. 54
B. 53
C. 52
D. 51
E. 50
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Question 12 of 16 4.0 Points

The following table gives the demand and production plan for an organization.

January February March
Demand 900 900 1,500
Production plan 1,100 1,100 1,100

The initial inventory is zero. The inventory holding cost is $1 per unit per month. The total inventory holding cost for the plan is:
A. $400
B. $600
C. $800
D. $1,200
E. None of the above
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Question 13 of 16 3.0 Points

Use the following data to answer questions 13-16

A Company policy calls for keeping safety-stock equal to 25% the forecasted demand for that month. The company currently has a work force of 12 people.

Demand Data
Jan. Feb. March
Beg. Inventory 200
Forecast demand 500 300 600



Production Data
Labor hours/unit 3
Workdays/month 20
Work hours/day 8


Cost Data
Labor cost/hour-straight time $14
Labor cost/hour-overtime $21

The production requirement for the month of February is
A. 300
B. 100
C. 225
D. 250
E. none of the above
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Question 14 of 16 3.0 Points

Use the following data to answer questions 13-16

A Company policy calls for keeping safety-stock equal to 25% the forecasted demand for that month. The company currently has a work force of 12 people.

Demand Data
Jan. Feb. March
Beg. Inventory 200
Forecast demand 500 300 600



Production Data
Labor hours/unit 3
Workdays/month 20
Work hours/day 8


Cost Data
Labor cost/hour-straight time $14
Labor cost/hour-overtime $21

The beginning inventory for the month of March is
A. 60
B. 75
C. 100
D. 150
E. none of the above
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Question 15 of 16 3.0 Points

Use the following data to answer questions 13-16

A Company policy calls for keeping safety-stock equal to 25% the forecasted demand for that month. The company currently has a work force of 12 people.

Demand Data
Jan. Feb. March
Beg. Inventory 200
Forecast demand 500 300 600



Production Data
Labor hours/unit 3
Workdays/month 20
Work hours/day 8


Cost Data
Labor cost/hour-straight time $14
Labor cost/hour-overtime $21

The number of units current work force of 12 workers can produce in a month during regular time is
A. 960
B. 800
C. 640
D. 600
E. none of the above
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Question 16 of 16 3.0 Points

Use the following data to answer questions 13-16

A Company policy calls for keeping safety-stock equal to 25% the forecasted demand for that month. The company currently has a work force of 12 people.

Demand Data
Jan. Feb. March
Beg. Inventory 200
Forecast demand 500 300 600



Production Data
Labor hours/unit 3
Workdays/month 20
Work hours/day 8


Cost Data
Labor cost/hour-straight time $14
Labor cost/hour-overtime $21

The number of workers needed to produce 960 units in a month is
A. 18
B. 16
C. 15
D. 12
E. none of the above
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