Test 3 solutions

Test 3 solutions - :‘i ‘ _ wa " ‘x ‘3 ru 1 -....

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2
Background image of page 2
3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: :‘i ‘ _ wa " ‘x ‘3 ru 1 -. ,ds -r’ c; t Li i. 2’1'77) “,3 Each problem is worth 5 points. 1. True or False: A manufacturer that wants to make sure that suppliers do not become ._." complacent should use multiple sourcing. ; 2. The percentage of value of shipments that come from materials for the average manufacturer is: ‘ A) Greater than or equal to 40 and less than or equal to 49 percent. B) Greater than or equal to 50 and less than or equal to 59 percent. C) Greater than or equal to 60 and less than or equal to 69 percent. D) Greater than or equal to 70 percent. ‘1'"? Answer: 3. F lingers Inc. reveals the following information in their annual report for FY 2004. Earnings and Expenses Sales $10,000,000 Cost of goods sold $5,000,000 Pre—tax earnings $500,000 Selected Balance Sheet items Merchandise Inventory $80,000 Total Assets $2,000,000 What is Flingers’ return on assets? A) 16% B) 20% C) 25% D) 40% Answer: 4. This table contains a list of three companies that have been rated on four weighted performance dimensions. Which of the following statements regarding this information is best? Performance dimension Quality (W = 0.5) Cost (W I 0.4) Speed (W 2 .01) m A) Thatherton is superior to Amerigas. B) Amerigas is superior to Strickland C) Mega-Low is superior to Thatherton. D) Strickland is superior to Mega~Low. Answer: __ 5. True or False: Offloading is part of a level strategy employed by services. l 61 Company ABC wants to locate a warehouse to serve their major customers that are shown in the table. What is the location that will minimize the transportation costs for their family of 10. roducts? (T; ,5.) . “x 1‘; \ ‘, , Customer Annual Volume i_X-coordinate Y—coordinatc Cowboy Inc. 25 + 3 7 I, Destiny 13 5 2 Winston Inc. 6 l_ 8 4 Woody Productions _i 4 1 5 A) Near (3,4) B) Near (4,5) C) Near (5 ,6) D) Near (6.5) '3 Answer: l Plants A, B, C and D produce the same item that is demanded by customers W, X, Y and Z in the amounts shown in the table. The cost to ship one unit between each combination of plants and customers is also shown in the table. If the corporation wishes to minimize the total transportation costs of this assignment problem, what is a suitable constraint? W X Y 2 Total _‘ A Capacity A $9 $10 $4 $2 22,000 B $7 $13 I_$11 $9 19,000 (3 $10 $6 $13 $11 L14,000 l—i) $12 $15 $8 $6 15,000 Total Demand 25,000 15,000_[ 18,000 12,000 A) Minimize Cost = ESQSaw + $10821): + $4Say + $2Saz B) Minimize Cost = $9Saw + $7Sbw + $IOScw + $128dw C) Saw + Sbw + Sew + de <= 25,000 D) Saw + Sax + Say + Saz <: 22,000 .T“) Answer: True or False: At the beginning of the semester, you decided to devote 10 hours a week outside of class time to your operations management studies, regardless of test, aesignments, or project due dates. This is a level plan approach to your favorite course. -.../’ ‘1.— True or False: A routine flight from LaGuardia Airport to Green Airport may have passengers that have paid radically different ticket prices. These prices fluctuate based on an approach called yield management. mi Within the context of the planning cycle, the planning that takes place at the highest level of the firm is called: A) strategic planning D) detailed planning and control Answer: B) operational planning C) tactical planning 11. What kind ofproduction plan does the following plan look like? Month I—Forecast Regular Overtime Subcontracting Ending Production Production } Elventory January 250 250 0 0 4' 0“; February [200 j! 300 0 0 0 March 500 350 so 100 Tlo ‘l April fl T350 L 350 o _ 0 0 A) Level plan B) Chase plan ‘ C) Mixed plan D) can’t determine I" Answer: if)" 12. True orfalse: A target service level is the point where the expected cost of a shortage equals the expected cost of having excess units. 13. True or false: The bullwhip effect says that a small change in demand dOWnstream in the supply chain causes a large change in demand upstream. " A 14, Which step comes first in sales and operations planning? A) Master scheduling B) Material requirements planning C) Production activity control D) Vendor order management ADSWer: I'll 15. Given the forecast and booked orders shown in the table, and a beginning inventory of203 what is the available to promise (ATP) invontory for the first period? "1 LPeriod ‘ _ _ T l T 2 _ _ _3 ll 4 ForecastedDemand _ r 200 _ 220 V_ 240 _ 200 rBooked Orders 7 190 L 80 30 10 Projected ending inventory l _J + Master production schedule 180 ‘7’ g, _l Available to Promise (ATP) 1 A)0 B}10 C) 20 D) 40 in; 7‘ ANSWER;— T“ s; an =+ l —- r9- : so You will need to Show steps for your answers in Problem 1. l. (15 points) A local barbecue joint makes one massive batch of potato salad each day. If they run out of this savory side before the end of the day, their last few customers are less than satisfied, but if they make too much, they sell it to the local hog farmer for feed. Every serving costs an equivalent of§_0.;§gto make, but can be sold for $1.50 to customers and forfiQOsSsto the hog You will need to show steps for your answers in Problem 1. l. (15 points) A local barbecue joint makes one massive batch of potato salad each day, If they run out of this savory side before the end of the day, their last few customers are less than satisfied, but if they make too much, they sell it to the local hog farmer for feed. Every serving costs an equivalent of_§_0._23__,to make, but can be sold for $1.50 to customers and fogfiQQSJo the hog farmer. The average daily demand is for 200 servings with a standard deviation of 20 servings. How many servings should be made each day? ’ a §31,¥ \ ._ 1 7 77'} L ‘ ’- ~41 > ‘— K‘ stain}! LBL h L FL<L£~>) :: C :3 I; e \ :1; 5 L. 1 - \ r y I Z 1 \ , V «torsigk 7 \ _- ‘ ‘~ .w s p NT A +~~"—-ar~—-~ r t my ~—> : all: 5 ' (s 3,1.” cf: "\ ._ E L - 4. ext-r» l \.-" ’ ‘3' 3 ’-— If N \ ~ «u: e t has. xi. w , _ “R f ___ 4 LH , '4 l l "I 2. (10 points) A service provider on the dusty plains of west Texas is reviewing potential contractors for a badly needed locust abatement program. They have identified three suppliers, Spike’s, Atomic General, and Look Sharp, and four criteria, stability, financial solvency, attention to detail, and environmental friendliness. The purchasing department suggests using the analytic hierarchy proeess to choose their contractor. Afier much debate, the committee in charge of this decision develops the following priority matrix. Complete the performance priority matrix. rPriority Matrix Stability Financial Attention to Environmental u Solvency 4 Detail Friendliness Stability 3 l 7 Financial 71/; a I 1/4 7' 4 Solvency ,1 1.3 <) 1 Attention to I _ 8 Detail 1 4r ' L 1 Environmental f I, '1 , Friendliness _ 7 7 ,/ 9' I M ...
View Full Document

This note was uploaded on 05/01/2008 for the course BUS 320 taught by Professor Suwu during the Spring '08 term at Rhode Island.

Page1 / 4

Test 3 solutions - :‘i ‘ _ wa " ‘x ‘3 ru 1 -....

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online