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Business: Financial Operations

A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per unit per year. The cost-minimizing solution for this product is to order

a. 200 units per order
b. all 4000 units at one time
c. every 20 days
d. 10 times per year
e. none of the above

Given forecast errors of -1, 4, 8, and -3, what is the mean absolute deviation?

a. 2
b. 3
c. 4
d. 8
e. 16

The initial solution to a transportation problem can be generated several ways, so long as

a. all cells are filled
b. all supply and demand conditions are satisfied
c. it ignores cost
d. degeneracy does not exist
e. it minimizes cost

Which time series model below assumes that demand in the next period will be equal to the most recent period's demand?

a. moving average approach
b. weighted moving average approach
c. exponential smoothing approach
d. naive approach
e. none of the above

Solution Preview

A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per unit per year. The cost-minimizing solution for this product is to order:
a. 200 units per order
b. all 4000 units at one time
c. every 20 days
d. 10 times per year
e. ...

Solution Summary

This solution provides answers to various multiple choice questions regarding financial operations.

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