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EMBA 638 Final Exam Part I, II, V - Operations Management




Question;EMBA 638 ?Operations Management;Summer 2013 Final Exam;IMPORTANT;?;This exam is open book, open Blackboard and open;notes. You may use Excel as needed or a;calculator. You are not allowed to use other person?s help or material from Internet;(with the exception of Blackboard) in taking the exam.;?;You have until;Sunday August 25th, 2013 midnight EST to finish this;exam.;?;Show your work on the word document. This will;allow you to obtain partial credit for your work even if the final answer is;not correct.;?;Your interpretation of a question, if any, is part of the exam. Only clarification;questions will be answered.;Part;Topic;Value;Grade;I;Quality Control;11;II;Inventory Management;11;II;Process Analysis and Queuing;35;IV;Short Answer Questions;18;V;Multiple Choice, T/F Questions;25;Total;100;* 2 = ____/200;The Honor Pledge;On my honor, I have neither given nor received unauthorized aid on this;exam.;Student Signature;(type your name);GOOD LUCK!;Part I ?Quality;Control (11 points);Southwest keeps gate time of its planes at a minimum;in order to maximize the flying time, hence capacity utilization of its;planes. They want to achieve a turnaround time of 20 minutes on average;with a maximum of 25 minutes and a minimum of 15 minutes. (Although faster;would be fine with them, the FAA and passengers might think they are;cutting corners and not doing everything correctly).;At the Baltimore;airport (BWI), 3 gates a day were sampled over four days to determine how the;Southwest ground crew at BWI was doing on this standard. The average of the;process was 20.5 minutes and the standard deviation was 1.5 minutes.;(2 points);Fill in the following table.;20;minutes;USL;25;minutes;LSL;15;minutes;(5 points);Is the process centered and capable? Why or why not?;Yes, the process is centered and;capable.;Why?;c.;(4 points) What is the probability that a plane will;have a turnaround time of greater than 25 minutes?;Part II: Inventory Management (11 points);2.;Southside restaurant uses a fixed;quantity (continuous replenishment) system. Daily demand for bags of coffee is;normally distributed with a mean of 36 and standard deviation of 8. The lead;time is constant at 5 days. The management wants to have a 92 percent service;level and the restaurant is open 365 days per year. Holding costs are $0.50 per;year and the ordering costs are $2.5 per order..;a.;(3;points) Determine the order quantity at which the total inventory costs would;be minimized?;b.;(4;points) What is the reorder point and the time between orders?;c. (4 points) Illustrate the order quantity, re-order point;safety stock and lead time on a diagram where the Y-axis represents the number;of coffee bags and the x-axis represents the time? What is the maximum possible;inventory in the system at any point of time?;Part V ?Multiple Choice and True/False (25 points);Multiple choice (16 points, 2 points each): Please highlight (in;yellow) the correct answer.;1. Animal;shelters tend to order Sodium Barbipentathol in large batches (e.g., enough to;last 6 months or more). Smaller;quantities would be ordered (e.g., a couple of weeks worth) except government;regulations require extensive and detailed paperwork to be submitted with each;order. This example is most closely;related to the following managerial insight;a.;the order quantity increases as the holding cost rate;decreases;b.;the order quantity increases as the cost per order increases;c.;the order quantity increases as the shortage cost rate;decreases;d.;the order quantity increases as the trade balance;decreases;2. Which one of the;following does not exemplify JIT/Lean used for competitive advantage?;a.;Acme;Foods decides to decrease the number of its suppliers to just a few.;b.;Cajun;Contractors has reduced the amount of space for inventory.;c.;Cheramie Trucking trains workers to;specialize and become very efficient in one job.;d.;Ardoyne;Builders has a scheduled preventive maintenance program.;e.;Ajax;Inc. is proud to announce that incoming goods are delivered directly to the;point of use.;A;tennis ball manufacturer has identified several causes of variability in;the bounce and has collected data on the number of times those causes have;led to high variability over the past month. They now need to decide which;causes to try to eliminate first. Which tool should they use?;a.;5S;b.;Pareto diagram;c.;ABC Analysis;d.;R-chart;e.;PDCA;4. Which of the following offers a potential for;reducing inventory costs in a supply chain?;a. sharing POS data across the supply chain;b. sharing components across different products;c. having more warehouses;d.;a and b;e. a and c;f. b and c;5.;Another term;for a postponement strategy is;a.;Speculation;b.;delayed differentiation;c.;mass;customization;d.;decreased;differentiation;e.;None of the above;6. Which of the following phrases describes the chart below about the reasons for unsatisfying hotel;stays?;a. H is the most important problem;b.;80%;of the reasons cause 20% of the dissatisfaction.;c. A is the most important problem;d.;20% of the reasons;cause 60% of the dissatisfaction;e. None of the above.;7. Which of the following statements is not a;characteristic of pull supply chains?;a.;Inventory levels are;typically low;b. Ordering decisions;are based on long-term forecasts;c.;Firms respond to;specific customer orders;d.;Allows faster response;to changing markets;8. If a production process is in;statistical control, which of the following statements is incorrect;a.;There are no special;causes of variation in the process;b. The process will;always be capable of meeting the customer specifications;c.;There are common;causes of variation in the process;d.;The range of the process;is in statistical control;True/False (1 point each, 9 points);1.;Variation in production systems that is;caused by factors that can be clearly identified and possibly even managed is;called assignable variation.;2.;EOQ;balances purchase cost and ordering cost.;The balance inventory order costs and carrying costs.;3. ____ Your;supplier?s supplier is a third tier supplier.;4.;Under the assumptions of the Basic EOQ;model, if one increases the order quantity, then the length of the order cycle;decreases (with demand and cost parameters remaining the same).;5. ___ A high-end, customized furniture;manufacturer, would most likely employ an assembly-line type of process.;6.;Productivity;is the total value of outputs produced divided by the total value of all inputs;to the transformation process.;7.;Under constant lead time, the key drivers of;safety stock are lead time, standard deviation of demand, and the safety;factor (or service level).;8.;The;idea behind Pareto charts is that working with the majorityof possible causes is needed;to significantly improve quality.;9.;Under the assumptions of EOQ model, if the total optimal cost (fixed ordering;cost + holding cost) is $10,000, then the holding cost part is $5,000.;That?s the end!


Paper#45975 | Written in 18-Jul-2015

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