1. Rose Arena is the production manager for a manufacturing firm that produces buggy whips and other items. The annual demand for a particular buggy whip is 1,600 units. The holding cost is $2 per unit per year. The cost of setting up the production line is $25. There are 200 working days per year. Rose decided to produce 200 units each time she started production of the buggy whips. If it took her 4 days to produce the 200 units, what was her production rate? 

80 units/day

60 units/day

40 units/day

100 units/day

none of the above

 

2. A linear program has been solved and sensitivity analysis has been performed. The ranges for the objective function coefficients have been found. For the profit on, the upper bound is 100, the lower bound is 75, and the current value is 80. If the profit on is increased to 120, then: 

the values for all of the decision variables will remain the same.

other values will change, but the original corner point remains optimal.

a new corner point will become optimal.

none of the above.

 

3. A person is using the normal distribution to determine the safety stock for a product. The "z" value of 2.32 would be associated with what service level? 

95 percent

97.5 percent

98 percent

99 percent

none of the above

 

4. Customers enter the waiting line to pay for food as they leave a cafeteria on a first-come, first-served basis. The arrival rate follows a Poisson distribution, while service times follow an exponential distribution. If the average is four per minute and the average service rate of a single server is seven per minute, what proportion of the time is the server busy? 

0.43

0.57

0.75

0.25

0.33

 

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