1.A plant manager needs to decide whether to expand the capacity of the plant. There are two states of nature: favorable and unfavorable. In favorable market conditions the plant would make an additional $50,000 when expanded. In unfavorable market conditions the plant would lose an additional $20,000 when expanded. Of course, the manager can choose not to expand and make $0 additional profit in favorable market conditions and lose $0 additional profit in unfavorable market conditions. If the two states of nature are equally likely to occur, what is the Expected Value with Perfect Information (EVwPI) in this case?

$0

$25,000

$10,000

$15,000

2. For the two constraints given below, which point is in the feasible region of this minimization problem? (1) 14x + 6y >= 42; (2) x - y >= 3

x = -1, y = 2

x = 2, y = 4

x = 2, y = 1

x = 7, y = 2

3. Which of the following is specifically characterized by a focus on continuous improvement, respect for people, and standard work practices?

Just-in-time (JIT)

Toyota Production System (TPS)

Lean operations

Kanban

4. If a restaurant is attempting to practice JIT and lean operations, which of the following would NOT be present?

Low inventories of raw food

A kitchen set up to minimize wastes

Large stock of frozen food

Close relationship with the suppliers of food and utensils

5. Which of the following is NOT a condition that must be satisfied for an occurrence to be an event?

All the alternatives must be available in the occurrence

The occurrence involves uncertainty

The decision maker has little control over the uncertainty in the situation.

The uncertainty in the situation has an impact on the outcome.