## A company makes bicycles. It produces 450 bicycles a month. It buys the tires for bicycles from a supplier at a cost of \$20 per tire. The company’s inventory carrying cost is estimated to be 15% of cost and the ordering is \$50 per order. The exchange rate for US\$ is TZS.2,350 per US\$.

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REQUIRED: Compute the following: (i) The Economic Order Quantity (EOQ). (ii) The average annual ordering cost in TZS. (iii) The average inventory. (2 marks)

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## Niagara firm is operating using the following Total Revenue and Total cost functions;

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TR = 40y – 8y^2 and TC = 8 + 16y – y^2    where   y = thousands of units of products REQUIRED: If the firm wishes to maximize profit, what level of output (y) should be produced?

## (i) Differentiate y = 2x^2(5x + 3) with respect to x.

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(ii) Evaluate ʃx(x^2 + 1)^3/2dx

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## Define the following concepts:

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(i) Pay off table (ii) Maximax

## For each of the following statements, state whether the statement is true or false. Indicate your answer by writing “TRUE” for the correct statement and “FALSE” for incorrect statement in your booklet:

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(i) The standard deviation of a binomial probability is given by npq. (ii) The sum of probabilities of all simple events in the sample space may be less than one depending on circumstances. (iii) If the dependent variable is negative, the graph ...

## Given the following items, you are required to pair each item from LIST A with the statement from LIST B appropriately. In paring the items with statements, write the letter from list B against the corresponding roman number in list A in your answer booklet:

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LIST A (i) Linear programming (ii) Basic stock control model assumption (iii) A network (iv) A simulation model (v) A normal distribution   LIST B A. Uses input and output variables B. Zero lead time C. No cost D. A sequence of activities E. A means of making production function ...

## These are activities carried by simulation process except:

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A. introducing of all variables B. construction of simulation model C. determining equation describing situation of linear model D. running the simulation

## In linear programming approach, firms which are used to implement all resources available are categorized as:

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A. implementation modeling B. transportation modeling C. firm modeling D. scarce resources modeling