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# Answers to the Midterm 1 - whole process can only process...

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Answers to the Midterm 1 Part I. Multiple Choice Question # Form A Form B 1 A E 2 E D 3 C A 4 C C 5 A C 6 A E 7 A B 8 C C 9 E C 10 E A 11 A D 12 A E 13 A A 14 D C 15 B B 16 B A 17 A C 18 B C 19 B A 20 E D 21 D D 22 C B 23 A D 24 C D

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Part II. Problem Solving 1. You have to use decision tree model to calculate the expected revenue of each right first, then deduct the corresponding cost, finally you get the expected profit of each right. Expected value of the exclusive right = 10*0.3+7*0.3+5*0.4 = 7.1 m Net expected value of the exclusive right = 7.1 – 3 = 4.1 m Expected value of the non-exclusive right = 6*0.3+4*0.3+2*0.4 = 3.8 m Net expected value of the non-exclusive right = 3.8 – 1 = 2.8 m Therefore, I would suggest McDonald’s to consider the non-exclusive right. 2. (a) First station is the bottleneck station due to work time limit (12 hours per day), so the
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Unformatted text preview: whole process can only process 12*100=1200 orders per day. (b) 1200/80 = 15 hours. Both Picking and packing workers need to work 15 hours a day. (c) 12* (100-80) = 240 orders waiting to be picked during a day. None waits for packing because packing worker works faster than picking worker. (d) At the current process setup, packing station has the lowest utilization rate (it is starving!). So, there are two solutions. One is to assign packing worker to part of the picking work. The other is to add a station parallel to picking with the process rate of 40 orders/hour....
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Answers to the Midterm 1 - whole process can only process...

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