1) PH produces many electronics products for the USA, Europe, and the UK. The plugs required for each of these geographical areas are different, so PH decided to create one version, and then ship these with three different plugs (i.e., of which two are redundant for the customer). The demands for a particular item for each market are normally distributed with the following parameters: USA – average of 20,000 with a standard deviation of 2,000, Europe – average of 10,000 with a standard deviation of 1,000, and the UK – average of 8,000 with a standard deviation of 2,000. If PH wants a 90% service level, then how much should their safety stock of the single version?
a) Approximately 5,000 b) Approximately 3,800 c) Approximately 11,500
2) Tires are produced with a target of 91.25 inches in circumference. The lower specification limit is 91 inches, and the upper specification limit is 91.5 inches. The output of the process is tires with an average circumference of 91.3 and a standard deviation of 0.05 inches. What is the process capability of this process?
a) 2.00 b) 6.00 c) 1.33
3) Postponement of the fan-out point:
a) Can realize a lower service level b) Can realize a lower safety stock c) Can only work for ice-cream
4) Little’s Law Firm has just one lawyer. Customers arrive randomly at an average rate of 6 per 8 hour workday. Service times have a mean of 50 minutes and a standard deviation of 20 minutes. What is the average number of customers in Little’s Law Firm?
a) Approximately 48 minutes b) Approximately 1.23 c) Approximately 0.75 d) Approximately 0.60