This document provides the questions and answers to the BSOP 209 Final Exam. It includes 12 multiple choice questions covering topics like forecasting methods, operations management, operations research, and linear programming. It also includes 4 word problems testing concepts in regression, break-even analysis, and decision tree analysis.

1. BSOP 209 Final Exam 100% Correct Answers
Description:
1. (TCO 8) What are the three parts of a wait-line system?
2. (TCO 9) What is the objective function of LP?
3. (TCO 11 & 12) What are two of the steps in a simplex maximization problem?
4. (TCO 10) What will happen if the right-hand side of a constraint is changed?
5. (TCO 15 & 16) What are three of the basic steps that both PERT and CPM follow?
6. (TCO 16) What is a “dummy activity?”
7. (TCO 3, 4, & 5) What is the formula for linear regression? Define each part.
8. (TCO 1) What are the four qualitative forecasting approaches that are available to us?
9. (TCO 6) Describe the “revenue junction.”
10. (TCO 8) What are the three parts of a typical queuing system?
11. (TCO 8) When designing a waiting line system, what “qualitative” concerns need to be
considered?
12. (TCO 8) What is the expected value with perfect information?
1. (TCO 1 &2) What is the forecast for Aug based on a weighted moving average applied to the
following past demand data and using the weights: 5, 3, 1.5? (largest weight is for most recent
data)
Feb. Mar. Apr. May Jun. Jul.
30 35 22 27 33 40
2. (TCO 3, 4, and 5) The XYZ Paint Shop owns and operates a dozen shops in southern Iowa.
Their signature paint is black epoxy. Sales (X, in millions of dollars) is related to Profits (Y, in
hundreds of thousands of dollars) by the regression equation Y = 6.321 + 0.65X. What is your
forecast of profit for a store with sales of $25 million? $65 million?
3. (TCO 6 and 7) A product is currently made in a job shop, where fixed costs are $4,500 per
year and variable cost is $10 per unit. The firm sells the product for $70 per unit. What is the

2. break-even point for this operation? What is the profit (or loss) on a demand of 220 units per
year?
4. (TCO 13, 14) XYZ coating company has reviewed four new processes for improving their
coating line. The four processes, labeled A, B, C, and D use different technology and have
different capacities. All the processes have the same level of production and the lifetime.
The four states of nature represent four levels of consumer acceptance of the firm’s products.
Values in the table are net present value of future profits in millions of dollars.
Forecasts indicate that there is a 0.4 probability of acceptance level 1, 0.3 chance of acceptance
level 2, 0.6 chance of acceptance level 3, and 0.5 change of acceptance level 4.
Consumer Acceptance Level (states of nature)
1 2 3 4
Alternative A 35 55 85 165
Alternative B -105 -5 155 225
Alternative c 75 85 75 65
Alternative D 55 55 75 65
Using the criterion of expected monetary value, which production alternative should be chosen?