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Unformatted text preview: KEY BUS 37o — Spring 2011 — Test 2 — March 24‘“ Directions: Fill in your name and student ID. Shade the corresponding letters
and numbers on the answer sheet. For the “Special Codes” section to the left of the
identiﬁcation number, put the number 452978 and shade the bubbles below. 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 output level at which two capacity alternatives generate equal cost” is the
deﬁnition of the following: a Fixed Costs
Indiﬁ‘erence Point c Variable Costs
(1) Expected Value 2. “A calculation that summarizes the expected costs, revenues, or proﬁts of a capacity
alternative based on several demand levels, each of which has a different probability” is
the deﬁnition of the following: a) Probability Outcome
b) Weighted Point Evaluation System c Regression d) Expected Value
3. A company is considering building a hotel in downtown Raleigh. They decide to
build the hotel in anticipation of demand because they want to make sure they have adequate capacity to meet all demand and would like to preempt the competition. This
capacity strategy is: c) Lag
d) Anticipation 4. Ellison Seafood Company has three shipping options. A common carrier will have no
upﬁ'ont cost and will charge $500 per shipment. A contract carrier will charge a $6000
ﬁxed cost and will charge $300 per shipment. Ellison can lease a truck for a ﬁxed fee of $21,000 and each shipment will cost $100. If Ellison has 40 shipments, their best option
is: a Common Carrier
Contract Carrier
c) Leasing
d) No clear choice based on the information given 0 ’ k ' *
Comm,“ . 3500/5k./, x goggfmwﬂ , 20,000 Cantrwa ‘ é000 + g300/Sk.¥WKL/0 ehLowufr ’ gt18,000 Liege I ‘ 1:, 00.9 r ﬂan/5a.,qu F70 ﬁLn‘ﬂmta/f; : ‘2 5, 009 5. The single line at a bank has 9 customers arriving per hour on average. The average
service rate is 12 customers per hour. The average time spent waiting by a customer in the waiting line is: a) .25customers 4w  r
b) .44hours xi“ _ ———e;”‘5——:*—“:* ’ “35%:
@ISminutes "" ilﬁ'razv '91—; d) .33hours 6. Similar to Forster’s Market, if buying a coffee roaster for $20,000 could lower the cost
of coffee from $5 to $3 per pound, the indifference point (in pounds) is: 4 V ' 7 '
£040,000 1? FC , c, K Fat 4 V6, X
b) 2,223 2.9 000 + S/n, x : 0 + 5 SAID X‘
C , .
@lonoo [0/0059 H»;: X 7. A restaurant has decided to expand their dining area from 20,000 to 30,000 square
feet. The following statement is true: a) Cost of waiting would go up b Cost of service would go down
@Capacity utilization would go down d) Customer satisfaction would go down 8. In the theory of constraints, one of the steps is described as “An hour of throughput
lost at the constraint is an hour of throughput lost for the entire chain. It is therefore
imperative that organizations carefully manage the constraint to ensure an uninterrupted
ﬂow of produc .” This statement describes the following step: a Identify
(é Exploit
c) Subordinate
d) Elevate 9. A realtor is trying to predict the value of a home. He has quantitative data available
and has evidence that the home price has a strong relationship to the square footage of the home. The best choice for a forecasting model is: a) Market Survey b) Moving Average c) Exponential Smoothing
@ Linear Regression 10. “A repeated pattern of spikes or drops in demand associated with certain times of the
year” in a time series is: a) Randomness
b Trend
Seasonality
d) Regression
11.
_P_eri6d 'ﬁé'méni' "—
_ _ “q.  _ _ ,..._5.5.__ 
...2__ _ a 6.4.._  _ “6.6
_ . "4 .68 .
' “I5 " ‘ 1:30.: ' Using the data above, the two period moving average forecast for period 4 is: 2060 D3+D1 é0+év
F, £3 19) 62 ‘ Z Z
c) 64 2 7'
d) 68
12.
“"3éta': " 0‘2” ‘ “ "Kim's! “' '
' 'p'en'oa' bérh'éﬁd""”_'__" 'Fdrééé'st‘""'"""itifdétéd Faréeaa '
._1_.... . ..___6_3_.___ . ._ “79... .. _
_.2_. "64... . __ _.
“15.7". I f If n ‘ Using the data above, the adjusted forecast for Period 2 using an adjusted exponential
smoothing model is (round forecast and trend to the nearest whole number): a)60 A'sz Kati b) 61 c 62
é“ F : “D” (psoﬁ; ‘3x43+.7“§9:é0,2§j‘é§i '2. E=F(FlP.>+6—F)Ti ,2(é0—§‘i)+ .7» 3 : 3.4 x3 Alf/1: (90+33 é? 13. X ‘/ ~ 2.
' #‘i‘ﬁihééri’ism “it’b‘f'ﬁiizas ' ____.x V .__...X 45' ' ' ' 17 " “76$ >0>f ._,...2.:7._.. ......__..._.__.......é_f_._. .._. , If???fl;:ITZZTLZEZ;I;.1; WW ) "n C 13.. __ 3.. . I ‘1‘? 3 2*! _" éwmiis’ €73 49' Zywsw 730“ w“ Using the data above, forecast the number of pizzas for 33 students (round a and b to the
nearest hundredth; round the answer to the nearest whole number): 2x22 '2: vs’
{‘311‘1’ “w‘9‘/5"": _
@312 L'éxv frz’ 4393, 125’“ ’ ,3;
(1)13 q
r
3:15" BSK'zt/r'z‘ 14.
* "Eé'ﬁéii'f 'Z .TTPéééﬁéf 7'. I"; T—EEiééEi ‘. 1 FE ‘ b
__ ___799_ ... 799.... _ _._ Z . 997.".._.~..__.. 1.9.0....__ n
_ __ .739.. . 8°°_ . _l__l_.
3b
Using the data above, the Mean Absolute Deviation is (round to the nearest whole
number):
a) 0 i ._ 39 
b) 1 M40 : n ' V ’ q 5332 15. In the Top Slice Drivers case, capacity is 2700 units. Demand reached 2500 units by
November and steadily increased to 2609 by March. The trend in March was 22.4 units.
If demand in April was 2550 units, the conclusion to be drawn based on the case is: a) Top Slice will run out of capacity in June b) Top Slice will run out of capacity in July c Top Slice will run out of capacity in October
@e Chinese manufacturer is stealing market share 16. “Costs that are tied directly to the level of operations or supply chain activities” are: a Fixed Overhead Costs
Direct Costs c) Indirect Costs d) Outsourcing Costs 17. On average, cost of materials consumes approximately _% of a manufacturer’s
revenue: a) 30%
b) 40% @50%
d) 60%
18. Summary Data for 3 possible suppliers Performance Dimension Supplier A Supplier B Supplier C Price 3’ $40/unit 2$ 50/unit $80/unit t Quality l .10 % defectsz.06 % defects .04 % defects 3 Lead Time I 10 days 7,7 days 2 days 3
Rating Values 1 2 3 Price >$ 60/unit $4560/unit <$45/unit Quality >.07 % defects .05.07 % defects <.05 % defects Lead Time >8 days 68 days <6 days
Wei ts Price Qualip; Lead Time .2 .4 .4
From the information above, using the weighted point evaluation systems, the following
supplier should be chosen:
it: ?~.1 + I».v+ IN! 3 "V
a)SuPP1ieTA  + u: + 2»; 2 2.0
b SupplierB 2w'7' 2 °V Y
upplierC é:l ]¥.2+ 3‘0.Y+ 3K7: 1.9 d) Not enough information to tell 19. The following is a disadvantage of outsourcing: a) Requires high investment (9) Loss of controlover the process and core technologies
c) Reduces strategic ﬂexibility
d) Reduces cash ﬂow 20. One of the advantages of multiple sourcing is: a) Increases supplier loyalty preads risk in the event of a disaster (i.e. ﬁre, strike)
c) Different product attributes with varying quality
d) Gain greater access to design and engineering capabilities 21. Please use the following information for the next question: Supplier A Supplier B
Cost per unit $100 $80
Quality level 98% 90%
Late deliveries per year 2 20 Cost of Unit Failure = $500
Cost of Late Delivery = $200
Total Number of Units Purchased = 5000 Based on Total Cost of Ownership, which of the following statements is true:
a Supplier A is more expensive than Supplier B
Supplier A is less expensive than Supplier B c) Supplier A and B have the same Total Cost of Ownership
d) Not enough information «r 3
AI ‘IOO/um‘ r fomuﬁm .01" f'>'00‘»9~?¢90 *’ 1”” 3 SSOI‘IOO 4:
. J ‘_ c l : S’ B“ $70ﬂu‘vf 5" SOOQt/an " .10 "(SOch 5000 4 0 o é 7’) U 2;; 1% . iS‘Iunj‘ 2/’
:i' ‘— ~46 ~—————————30KL 2’
CH j. 921. —> at H g "Breakbulk cvéf 4’5me
22. Bozarth Industries of Chicago, Illinois makes weekly shipments to 7 customers in the
Orlando, Florida area. Each customer’s order weighs, on average, 800 pounds. A
Chicago based warehousing ﬁrm has offered to run a breakbulk warehousing operation
in Orlando at the cost of $50 per hundredweight. Local deliveries in Orlando to each
customer would cost $125 per customer. The cost of a shipment ﬁ'om Chicago to Orlando costs $800. The weekly savings of the breakbulk solution is: @$ 1,125 b) $ 1,875
c) $ 1,925
d) No savings  the breakbulk solution is more expensive 5 5 eat?
as 3n e( 7" 4rZOO/3 (“7" W :
é ' Wé‘rAWLqL 7 x 3067 M“ 5“ﬂag/[00165: €2,300
/ Brtéahvlk ﬁln. : [sxgdyoo/‘(Lh‘f ; 9F 200
5mm! : 7x411; : 4 373’
$1 12)” 23. The technology breakthrough which allows pallets or containers to transmit
“messages” identifying information such as their location and contents is: Barcoding applications
mo Frequency Identiﬁcation (RF ID)
c) Roadrailers
d) Multimodal solutions 24. The transportation mode which is typically the least expensive mode on a perpound
basis (for example, to ship farm products such as livestock) is: a) Highway
b) Pipeline
[9mm (1) Air 25. Retailers such as Lowe’s receive large shipments from multiple suppliers and resort
the goods into customized shipments to individual stores. This is an example of: éQCrossdocking
b) Breakbulk
c) Consolidation
d) Hubandspoke ...
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This note was uploaded on 10/27/2011 for the course BUS 370 taught by Professor Favre during the Fall '08 term at N.C. State.
 Fall '08
 Favre
 Management

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