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1.(TCO 1) Which of the following functions involves budgeting, analysis of
investment proposals, and provision of funds?(Points : 5)
Operation
Marketing
Purchasing
Finance
Internal audit
Question 2.2.(TCO 1) Transformation includes all of the following, except(Points :
5)
assembling.
teaching.
staffing.
farming.
consulting.
Question 3.3.(TCO 1) Which of the following is providing new opportunities for
productivity improvements?(Points : 5)
Pollution control
Total quality management
all changes that have occurred within a given time interval, the process is
called(Points : 5)
Question 10.10.(TCOs 4, 5, & 6) The MRP approach that is used for components
or subassemblies to compensate for variations in lead times is called(Points : 5)
Question 13.13.(TCOs 5, 7, & 9) What will be the quantity of the first planned
receipt if net requirements for component J are as follows: 60 units in Week 2, 40
units in Week 3, and 60 units in Week 5?A fixed-period, two-period lot-sizing
method is used.(Points : 5)
Question 14.14.(TCO 11, 12, 13, & 14) Given a product mix, scheduling difficulties,
quality factors, and so on, the maximum expected output is(Points : 5)
Question 15.15.(TCOs 11, 12, 13, & 14) Given the following information, calculate
the efficiency.
Effective capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day(Points : 5)
Question 16.16.(TCOs 10, 15, & 16) In an assignment method problem, it takes
Abe 3 hours to build a birdhouse and 4 hours for a doghouse, while Betty takes 4
hours for a birdhouse and 3 hours for a doghouse. What is the reduced cost (in
hours) of assigning Abe to build the doghouse?(Points : 5)
Question 17.17.(TCOs 10, 15, & 16) The matrix below shows relative costs for
various job-machine combinations. Which set of pairs constitutes the minimum
cost solution using the assignment method?
Job 1
2
3
A
$6
0
0
Machine
B
0
3
1
C
0
4
2
(Points : 5)
1.(TCO 1) A company has found that introducing one additional worker enables a
process improvement that reduces processing time for each unit so that output is
increased by 25% with less material. Under the old process, five workers could produce
60 units per hour. Labor costs are $12/hour, and material input was previously $16/unit.
For the new process, material is now $10/unit. Overhead is charged at 1.6 times direct
labor cost. Finished units sell for $31 each. What increase in productivity is associated
with the process improvement?(Points : 30)
3.(TCO 2) For the product tree below, how many Cs are needed if 17 Ps are needed
and on-hand inventory consists of 10 As, 15 Bs, 20 Cs, 12 Ms, and 5 Ns? Show your
work.
(Points : 30)
4.(TCOs 4, 5, & 6) Given the tree below, develop a material requirements plan for enditem P and its components. Assume that all lead times are one week and that lot-for-lot
ordering is used, except for Item F, which is ordered in multiples of 400 units.
6.(TCOs 11, 12, 13, & 14) A small business owner is contemplating the addition of
another product line. Capacity increases, and equipment will result in an increase in
annual fixed costs of $50,000. Variable costs will be $25 per unit. What unit selling price
must the owner obtain to break even on a volume of 2,500 units a year?
B) Because of market conditions, the owner feels a revenue of $47 is preferred to the
value determined in part A. What volume of output will be required to achieve a profit of
$16,000 using this revenue?(Points : 30)
5.(TCOs 5, 7, & 9) Explain the advantages and disadvantages of frequent deliveries of
small shipments.(Points : 25)
7.(TCOs 10, 15,& 16) Compare and contrast kanban and CONWIP.(Points : 20)
8.(TCOs 8 & 9) MPS planners use what is referred to as time fences? What are they,
and why are they used?(Points : 20)
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