RAND function, 469

Random arrivals, 430, 440

Random (R) component, of time-series, 150

Random errors, 113

Random numbers, 464, 469, 474, 479, 480, 484

• generating, 465–466

• generating in Excel, 471

Random variables, 30–31, 32, 33, 40

Random variations, 154, 167

Range charts, 536–537

Ranking goals with priority levels, 371

Raw data, 2

Raw materials, 187, 269

Ray Design, Inc., 332–334

R-charts, 532, 535, 537

Receipt of inventory, 189

Recovery, 5

Red Top Cab Company c-chart example, 540–541

Redundancy, 261, 262–263

Regression

• calculations in formulas, 145–146

• cautions and pitfall, 134–135

• coefficients of, 119

• computer software, 122–126

• least squares, 113, 163

• measuring fit of, 114–117

• multiple regression model, 126–129

• nonlinear, 131–134

• as part of improvement initiative at Trane/Ingersoll Rand, 117

• relationship among variables, 111, 112, 113, 114–116

• stepwise, 131

• with trend and seasonal components, 167, 170–172

• variance (ANOVA) table, 122

Regression analysis, 111, 112, 148, 153

• cautions and pitfalls, 134–135

Regression equations, 113, 114, 116, 132, 133

Regression models, 117

• assumptions of, 113, 117–119

• binary variables, 129–130

• building, 130–131

• coefficient of correlation, 116–117

• coefficient of determination, 116

• dependent variable, 111, 113

• dummy variables, 129–130

• errors, assumptions about, 113, 117–119

• estimating variance, 119

• independent variable, 111, 112

• nonlinear regression, 131–134

• quantitative causal models, 148

• scatter diagrams, 112

• significant, 119–120

• simple linear regression, 111, 113–114

• statistical hypothesis test, 119–121

• statistically significant, 130–131

• testing for significance, 119–122

• variables, 126–127

Relative frequency approach, 22, 23, 24

Remington Rand, 388

Reneging, 430, 434

Rentall trucks, 523–524

Reorder point (ROP), 16, 194–196, 472, 474

graphs, 195

Residual, 122

Resistance to change, 16

Resource leveling, 410

Resources

• changes in, 269–270

• constraints, 238, 239, 240

• most effective use of, 238, 240

• slack, 250

• storing, 187

• surplus, 250

Response, 5

Response variable, 111

Restrictions, 238

Results, 5, 14

• analyzing, 6, 7, 15, 24, 188

• implementing, 3, 6, 7, 15, 16, 188

Revenue management, 308–309, 310

Revised probability. See Posterior probabilities

Revision probability, 27–30, 83–85

Risk analysis, 5

Risk avoider utility curve, 88

Risk management system, 199

Risk mathematical model categories, 9

Risk seeker utility curve, 88

RiskSim, 485

Romig, H. G., 530

Rules of probability, 22

Running sum of the forecast errors (RSFE), 172