STAT REVIEW
This is the basic definition of probability.
long run relative frequency
Products that are adaptable to having their
inventory managed by Newsvendor models are
said to have this type of market existence.
short-life cycle? (or perishable)
This metric tells us the change in the objective
function if we produced a unit of a product that
was not in the optimal solution.
reduced cost
This metric is found by taking the inverse of the
cycle time of a process.
capacity? (flow rate)
We’re working with this when we discover that
Excel capacity is too small to do the calculations.
n What
big data
If the desired area in a Standard Normal
Distribution is less than .5, then the Z-score
would have this characteristic.
negative
This defines how many times the inventory
manager gets to order using Newsvendor
Models.
once
The relative sizes of the profit contributions of
different products form this graphical
characteristic of a linear objective function.
SLOPE
When we analyze the average amount of time
customers spend in the process, then Little
would say we have calculated this metric.
flow time (w)
n It takes a computer to hold this organized
collection of structured information.
database
The Critical Fractile which represents the desired
area to the left of Q (order amount), defines this
relationship between Q and Demand.
What is the fact that Q > D?
When we err in estimating the actual demand
of a product by ordering too much, we suffer
this type of inventory cost.
overage
The relative sizes of the profit contributions of
different products form this graphical
characteristic of a linear objective function.
LP Simplex (or Simplex algorithm)?
This important element of a process can be
observed to accumulate right before the
bottleneck.
inventory
n The bible on this topic (Sosulski’s text) says that
this is the process of representing information
graphically.
data visualization
If we want to test whether our data is from a
particular type of distribution, we use this
statistical test.
What is a Chi-Square Goodness of Fit test?
When analyzing a Normal distribution, we
standardize the metrics of the problem using this
statistical term for measuring the number of
standard deviations we have varied from the
mean.
z-statistic? (or z-score)
This type of optimal solution to an LP problem
exists when there is more than one optimal
corner point.
an infinite number of optimal solutions?
(or alternate optima)
If a scarce resource in an LP optimization is
reduced by one unit, the effect on the objective
function is conveniently calculated by Solver, and
is labeled by this term.
Shadow Price?
Although we might not find precious metals, this
process often discovers answers to problems.
data mining
When we attempt to make inferences about a
parameter of a population, we use this
characteristic of a sample.
a statistic
When we calculate the Critical Fractile
percentage in an analysis, we are determining
this desired relationship between the supplier
and customer.
service level?
If two constraints were inconsistent, such as
x>5 and x<4, this LP problem would be said to
have this type of solution problem.
no feasible solution? (infeasible)
HBR called this occupation the sexiest job for
the 21st century.
data scientist