illustrative_exam1

illustrative_exam1 - Illustrative Exam 11 BUAD311...

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Illustrative Exam 1 1 BUAD311 – Operations Management Fall 2011 Section A: Multiple Choices Circle only one. 1. Which of the following statement is correct? a. Make-to-order systems are better than make-to-stock systems. b. Make-to-stock systems are better than make-to-order systems. c. Hybrid systems are perfect and better than both MTO and MTS systems. d. Hybrid systems are worse than both MTO and MTS systems. e. None of the above 2. According to Little’s Law, a restaurant owner may increase the revenue by a. reducing the throughput rate b. having larger space and higher WIP c. having smaller space and lower WIP d. increasing the time customers staying in the restaurant e. None of the above 3. To improve the utilization rate, we can I: Cross-train the workers II: Adopt flexibility equipments III: Shift from MTS systems to MTO systems Choose the most appropriate. a. I b. II c. III d. I and II e. I, II, and III 4. Comparing make-to-order systems and make-to-stock systems, which of the following statement is false ? a. Make-to-order systems are more responsive to the customer needs. b. Make-to-order systems have lesser or no finished-goods inventory. 1 These are all actual questions that appeared in past exams. Note we may be covering slightly different materials this semester. 1
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c. Make-to-stock systems can fulfill customer demand faster d. Make-to-stock systems usually have a lower utilization rate than made-to- order systems. e. IN-N-OUT burger is a make-to-order restaurant. 5. Consider the following process flow diagram. Suppose that Station A can process 35 orders per day, that Station B can process 30 orders per day, that Station C can process 40 orders per day, and that Station D can process 35 orders per day. What is the bottleneck? a) Station A b) Station B c) Station C d) Station D e) None of the above 6. Consider a business process with multiple stages. The utilization rate of the bottleneck resource is currently 90%. Which of the following will increase the bottleneck utilization? a. Increase in capacity of the bottleneck resource b. Increase in capacity of non-bottleneck resources c. Decrease in capacity of the bottleneck resource d. Decrease in capacity of non-bottleneck resources e. Decrease in throughput rate 7. Bank XYZ is hiring, and they would like to determine the number of tellers they should hire. Each teller is paid $15 per hour. Bank XYZ has assessed a cost on customer waiting at $10 per customer in line per hour. (In other words, each customer standing in line at the bank and not being helped by a teller costs the bank $10 per hour.) How many tellers must the Bank hire to minimize their total hourly cost? Assume customers arrive according to a Poisson process at rate 20 per hour, Station A Station B Station D Station C 2
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and that each customer spends an exponentially distributed amount of time with a teller that has mean 8 minutes. a)
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illustrative_exam1 - Illustrative Exam 11 BUAD311...

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