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Unformatted text preview: K E y
BUS 370 — Spring 2009 — Test 2 Directions: Fill in your name and student ID. Shade the corresponding letters
and numbers on the answer sheet. Answer each question with the one best choice by
marking the letter of the answer on the attached answer sheet. Each of the 25 questions is
worth 4 points for a total of 100 points. 1. The following type of capacity planning uses workforce, inventory and subcontracting
decisions over a monthly horizon: @ Tactical b) Strategic
c) Lead
d) Planning and Control 2. A hotel chain is considering building a new hotel in the Raleigh area. They decide to
add capacity only after demand has materialized. The beneﬁts are greater productivity
and delay of a large investment. They have chosen the following strategy: 69 Lag b) Match
c) Lead
d) Virtual Supply Chain 3. Similar to the Forster’s Market case, Forster could buy a roaster with a capacity of
40,000 pounds per year for a ﬁxed cost of $30,000 per year which would lower his per
unit cost of coffee from $4 per pound to $2 per pound. He can sell 15,000 pounds of
coffee in his market for $6 per pound and can sell coffee to restaurants for $3.50 per
pound. There is a 60% chance he can sell 25,000 pounds total and a 40% chance he can
sell 35,000 pounds total. The following statement is true about the expected value of
buying the roaster: AM [30,: 15,0001L5 x(‘Q/(5  ‘q/IQ = $30,000
B041: ' ‘30,000 + 15.000 ”>5 “(‘é//l>"2/’L> +
. (a[ 10,000 ILs x (’35'0/11,» ‘ Loo/Nb] 5* ,‘f [74,000 lb; ‘(‘3.$/n_,r‘2//L:): '4530‘000 * ‘EOIDUO T ‘9/000 4* 1,1,000 = ‘5’)1000
a) $ 81,000 higher than not buying it
b) $ 51,000 higher than not buying it (3) $ 21,000 higher than not buying it
) Lower than not buying it Fixed cg Variable C t Uni
Option 1 $280,000 $25
Option 2 $120,000 $45 The indifference point between Option 1 and Option 2 is: 4: g c , +3
$210,000 + lfx,’ ”’0'000 ‘tj'x “Macao : 20x
$000M}: 3"
a) OUnits b) 4,000 Units
@ 8,000 Units
d) 12,000 Units 5. In the theory of constraints, the concept that “an hour of throughput lost at the
constraint is an hour of throughput lost for the entire chain” describes the following step: a Identify
(é Exploit c) Subordinate d) Elevate 6. During training, an airline representative checks in their ﬁrst customer in 4 minutes and the second customer in 3 minutes. It will take him the following amount of time to
check in the ﬁrst 10 customers in total: 3 a
T :qmg, TV 2m Merv 75 /<> a) 1.540 minutes b) 5.589minutes g n 5 ((0 @V‘y‘le) : g. 557‘?
@ 22.356 minutes
d) 55.890minutes TiarTinL : 0,5, x 5637 : 92.3“: 7. J iﬁieLube has 15 customers arriving per hour on average. The average service rate is
25 customers per hour. The average time spent in the waiting line system is: Aclg cusf/hr : QC cow/Ar
,0!
TgtL ' : .ikr/CV<%: , ,«4 A agate/He , mm, a) .1 minutes é mat V 14“
b) .1 minutes c) 3.6 minutes
@ 6.0 minutes 8. The following statement about forecasting is true: a) Almost always correct
@3' More accurate for groups or families
0) More accurate for longer time periods
(1) Can be substituted for calculated demand 9. The following is a qualitative forecasting method in which the forecast for a new
product or service is based on the actual history of a similar product or service (in
forecasting demand for the newest model of iPod, the demand history from the previous model of iPod is used as an input): a) Panel Consensus
b) Buildup Forecasts c Delphi
Life Cycle Analogy 1 0. Period Demand
1 78 2 84 3 82 For period 4, the forecast using a 2 period moving average forecast is: _ Dr‘fbt _ 32*87_
F 7 , 7, « 3? r ‘f '2. a) 81
b) 82 ‘3’ 1’3: 11. Period Demand F; {Exponential Smoothing) Trend &
3 85 84 5 89
4 91 85 3 88 The Trend for Period 5 (0L=.6, B = .4) is (round to the nearest whole number): TS: 73(F5'ﬁ)+(/'8>Tq
F5: ah+0w>ﬁ= .(7‘?I+.V"85 =3”??? a) l
b) 2 _ x . . . + , : _
3 TS’»9(9‘?'8§)+.C 3—19/3 37373
) 4
12 USng the data below, the Mean Forecast Error is: (D)
we D_em.and Fgrggg FE : net , F
1 554 578 _ H
2 589 612 1;
3 634 625 q
4 658 656 IL
' 76 = S F E
a 26.0 ,
é 6.5 E 3 gift : 33 : .
c) 6.5 M F n v 4 . S
d) 12.0 13. Using the same logic/math as the Top Slice Drivers Case and the information below
(diﬁ‘erent data than the case in the lecture notes), we will likely run out of capacity in months: . . _ A F : F + T
Exponential Smoothing Forecast (Ft) — 3500 f t 4'
Capacity = 4000
Demand (D) = 3700 A F  F = 71
Adjusted Forecast (AB) = 3650 t t ’3 éSor'SfOO > 7; r ’fo
a lMonth Ca ’ — Dt L/ ,3700
/au+’7 000 ‘
2Months Momfks , T l "‘75; 0 '9)
4' c) 3 Months
d) 4 Months 14. “A repeated pattern of spikes or drops in a time series associated with certain times
of the year” is: a) Qualitative
b) Randomness c Trend
@ Seasonality 15. The following favors a decision to outsource: a) Low environmental uncertainty
b) Low competition in the supplier market
c High relationship to core competency
High ability to monitor supplier performance 16. Using portfolio analysis, the actions taken are to widen the speciﬁcation, increase
competition and develop new suppliers. These actions are consistent with the following
quadrant: a Critical
Bottleneck c) Routine d) Leverage 17. Summary Data for 3 possible suppliers Performance Dimension Supplier A Supplier B Supplier C Price .3 $850/unit 3 s 740/unit a $810/unit
Quality 3 .3 % defects .2 .6 % defects 1 1.2 % defects
Lead Time 3 14 days 1 21 days 3.18 days
Rating Values 1 2 3
Price >$ 900/unit $800900/unit <$800/unit
Quality >1.0 % defects .51.0 % defects <.5 % defects
Lead Time >20 days 15—20 days <15 days
Wei ts Price Quality Lead Time
.3 .5 .2
From the information above, using the weighted point evaluation systems, the following
supplier should be chosen:
am“ A: 5* «l 1" .8” 3 +1” 3 = 37797
31.3”} +.5x1hu( =2.)
C’:,3"2. f‘g—b' +131 2: ,.§ ‘Supplier A b) Supplier B
c) Supplier C
d) Not enough information to tell 18. An advantage of multiple sourcing is: @ Creates Competition
b) Transportation Economics
c) Reduced Quality Variability
d) Volume Leveraging 19. On average, cost of materials consumes approximately _% of a manufacturer’s
revenue: a) 20
b) 30
c) 40 @50 20. If the item is new or technically complex with only vague speciﬁcations, the
supplier selection method which is most effective is: a) Competitive Bidding b) Firm Price Contracting
@ Negotiation d) CostBased Contracting 21. The form of analysis in which we answer questions such as “What are the top 10
commodities by annual spend?” and “Which commodities have the most suppliers?” is: a Total Cost of Ownership Analysis
é Spend Analysis c) Total Cost Analysis d) Purchasing Analysis 22. “Any operation that stores, repackages, stages, sorts or centralizes goods or
materials” is: a) Multimodal b) Logistics
Warehousing (1) Packaging 23. A form of warehousing that pulls together smaller shipments from a number of
sources (often plants) in the same geographic area and combines them into larger, more
economical, shipping loads is: a Crossdocking Consolidation
c) Hub and Spoke
d) Breakbulk 24. MachineCo Industries of Chicago, Illinois makes weekly shipments to 10 customers
in the Orlando, Florida area. Each customer’s order weighs, on average, 1,500 pounds.
A Chicago based warehousing ﬁrm has offered to run a breakbulk warehousing
operation in Orlando at the cost of $40 per hundred weight. Local deliveries in Orlando
to each customer would cost $50 per customer. MachineCo would make 1 breakbulk
shipment to the Orlando warehouse each week at a cost of $1000 per shipment. The
weekly cost of the breakbulk solution is: a) $ 2,100
b) $ 2,500
c) $ 6,500 @1; 7,500 r . ¢ (VJ'I’ Deﬁutrfh
élqrp BI eat. Bull \ I
M M m is: 3 (’00:) 4 1050,}x1’5'001Ls/w54 x ”on” + lok"§0 : <thooo + ‘5 (7,000 +‘SOO = $'ZS’oo 25. A form of warehousing that attempts to position time sensitive, seasonal goods close
to the marketplace often using temporary, public storage is: Spot Stock
) Assortment
c) Multimodal
d) Postponement ...
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 Spring '08
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