1. Exam 1
Review

2. Exam 1 format Multiple Choice section- 20 % Problem section- 80 %
closed book, closed notes, closed computer
Use review sheet to study, know definitions and basic facts about each
Problem section- 80 %
4 problems, based on homework / quizzes
Using excel will help a lot on certain problems
Review list on the following slides

3. Problem types (For underlined types use the excel macro)
1. Decision Tables – maximax, maximin, expected value, Expected value of perfect information
Use macros for everything!

4. Problem types
2. Decision trees – be sure to differentiate own decisions from external decisions (Square vs. Circle nodes)
Square nodes- select the maximum from the nodes that follow (b/c you get to pick.)
Circle nodes- multiply the probability of each following node by the payoff for that node and add them up
Consider “doing nothing” when all choices give negative payoff
Compute value of information (possibly imperfect information)

5. Problem types 3. Forecasting –
Time series: Be able to predict using moving average, weighted moving average, exponential smoothing, or regression
Compare using MAD, MSE, MAPE, or Bias
4. Use Seasonal Factors / Indices to make prediction for specific seasons in the future (using regression over aggregate time period)

6. Problem types 6. Operations layout- (Product layout) Line Balancing
Compute Desired Cycle Time = Takt time = Cd
Compute Min number of Workstations = N
Group tasks into wkst’ns
Each wkst’n should use less time than Cd
Cannot jump over steps
Try to get as few wkst’ns as possible
If multiple assignments have the same # wkst’ns, pick the most efficient, then most balanced
Compute Efficiency and Idle Time