Which of the following will allow a manufacturer with limited resources to maximize profits?
Answer(s): D
Linear programming is a technique used to optimize an objective function, that is, to maximize a revenue or profit function or to minimize a cost function, subject to constraints, e.g., limited scarce) resources or minimum/maximum levels of production, performance, etc. In business, linear programming is used for planning resource allocations. Managers are often faced with problems of selecting the most profitable or least costly way to use available resources.
Which of the following is not an appropriate time series forecasting technique?
Answer(s): C
The Delphi technique is an approach in which the manager solicits opinions on a problem from experts, summarizes the opinions, and feeds the summaries back to the experts without revealing any of the participants to each other). The process is reiterated until the opinions converge on an optimal solution. Thus, the Delphi technique is a qualitative, not a quantitative, method.
The sales manager for a builder of custom yachts developed the following conditional table for annual production and salesAccording to the table, how many yachts should be built?
To achieve the maximum expected profit, 30 yachts should be built. For each level of production, multiply the probability of demand by the expected profit. The computation for the maximum is:0.1 -US $10) + 0.2 $10) + 0.5 $30) + 0.2 $30) = US $22.
All of the following are useful for forecasting the needed level of inventory except
Answer(s): B
Forecasts are the basis for business plans. Models are used in the forecasting process to make decisions that optimize future results. Internal accounting allocations of costs to different segments of the company are arbitrary assignments of already incurred costs that do not have anything to do with forecasting demand.An organization has collected data on the complaints made by personal computer users and has categorized the complaints.
Using the information collected, the organization should focus on
Complaints based on lack of user knowledge and hardware problems are by far the most frequent according to this chart. Consequently, the company should devote its resources primarily to these issues. An organization has collected data on the complaints made by personal computer users and has categorized the complaints. An organization has collected data on the complaints made by personal computer users and has categorized the complaints.
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