311_exam_1_solution_Chen(2)

311_exam_1_solution_Chen(2) - BUAD 311_ Chen Midterm I...

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Unformatted text preview: BUAD 311_ Chen Midterm I Solution BUAD311 – Operations Management September 30, 2010 Section A: Multiple Choices [3 points each; no partial credit] (Please write your answer left to the question.) 1. Which is TRUE about the case of West Coast University Clinic? a) Physicians are the bottleneck resource and thus the clinic should hire more doctors. b) We should apply the D/D/1 model to analyze the waiting time for customers with appointments. c) The team system with smaller team size tends to have longer customer waiting time. d) We should apply the M/D/1 model to analyze the waiting time for customers with appointments. Answer: C 2. Which is FALSE about flexible manufactories and product variety? a) Flexible production lines help firms to become more responsive to market change. b) Flexible manufactories tend to have higher training cost. c) It is always good to adopt flexibility equipments and increase product variety. d) Product price tends to increase with product variety. Answer: C 3. A loan office receives 120 applications each year, on average. An application will be categorized as either an A or a B application. On average, the there are 20 A applications and 10 B applications in the office. Which of the following(s) is(are) TRUE ? I. On average, an application stays in the office for 3 months. II. On average, an A application stays in the office for 3 months. III. The minimum throughput time for B applications is 1 month. IV. The minimum throughput time for A applications is 1.5 months. a) I only b) II and III c) I and III d) I, III and IV Answer: C 4. Which of the following statement(s) are TRUE ? I. Utilization rate is always no more than 1. II. Double the capacity will enable us to cut the processing time in half. III. If demand fluctuates, we can use the average demand rate as required capacity because we can always use inventory to buffer and smooth the demand. a) I only b) I and II c) I, II, and III d) II and III BUAD 311_ Chen Answer: A BUAD 311_ Chen 5. Based on the Psychology of the Waiting Lines, which of the following is FALSE ? a) Airline passengers will become less patient when the flight is about to end and the plane reaches the gate. b) Playing “muzak” is recommended for call centers while customers are waiting. c) It might be beneficial to add additional stage/activity in to the process so as to decrease the perceived waiting time. d) One disadvantage of the multiple line system is that worrying that we had chosen wrong line may increase our anxiety. Answer: B 6. To run simulations in Excel, which of the following is FALSE ? a) “=RAND()*10+20” generates an uniform distribution between 20 and 30. b) “=NORMINV(0.5, 1, 1)” returns 1....
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This note was uploaded on 10/04/2010 for the course BUAD 311 at USC.

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311_exam_1_solution_Chen(2) - BUAD 311_ Chen Midterm I...

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