QUESTION 1: What may be included in the inventory holding cost? Choose all that apply.
inventory ordering cost
inventory depreciation cost
overstocking cost or salvaging cost
financing (interest) cost for inventory
inventory product cost
warehouse rental cost
management overhead cost for warehouse
warehouse workers salary and benefit cost
QUESTION 2: Firm BlueMountain Inc. carries product A as inventory. The total warehousing cost is $51,626 in 2014. Due to obsolescence, this inventory lost its market value by $24,876 in 2014. The manager estimated that the average inventory level for product A is 911 units during 2014. The unit purchasing cost of A is $500. In addition, the risk free interest rate is 5% per year. What is your estimate of the inventory holding cost per year in percentage? Ignore the percentage sign, round to the nearest integer. For example, if your answer is 34.56%, fill in 35; if your answer is 76.43%, fill in 76.
QUESTION 3: Strohrmann, a large-scale bakery in Pennsylvania, is laying out a new production process for their packaged bread, which they sell to several grocery chains. It takes 15 minutes to bake the bread. How large an oven is required so that the company is able to produce 4000 units of bread per hour (measured in the number of units that can be baked simultaneously?)
Round the answer to the nearest whole number. For example, if your answer is 2543.65, round to 2544; if you answer is 2543.12, round to 2543.
QUESTION 4: When using flow charts to describe a process, we use bars with different length to demonstrate the usage of resources.
True
False
QUESTION 5: Transportation service is considering improving the shuttle service capacity during morning hours from city T to city M. The analyst predicts the demand for this service during morning hours is 500 persons per hour. And the average transportation time is 22 minutes (including the time for the shuttles to go to M and return to T). Each shuttle has 36 seats. How many shuttles are needed for this service?
Round the answer to the nearest whole number. For example, if your answer is 2543.65, round to 2544; if you answer is 2543.12, round to 2543.
QUESTION 6: When using Gantt charts to describe a process, we use bars with different length to demonstrate the usage of resources.
True
False
QUESTION 7: From operational point of view, what are the inventory costs? Choose all that apply.
salvaging cost
wages and salary
land cost
equipment cost
ordering/setup cost
purchasing cost (or product cost)
holding cost
shortage cost
QUESTION 8: The manager of the local store of a national home improvement chain is studying their inventory system. He has chosen one high volume product as the first product to examine. The historical supply and demand data for this item has indicated a constant lead time of 12 days. Demand per day (d) is normally distributed with a mean demand of 2000 per day and standard deviation of 250 per day. He plans to set the in-stock probability (or service level) for this item at 80% during lead time. The ordering cost for this item is $500 per order. The product cost is $10 per unit. The annual inventory carrying cost is 25% of the item cost per year. The store operates 300 days a year. The manager decides to use the fixed quantity system (reorder point and economic order quantity). Based on the information provided, answer the following questions.
1. What is the safety stock level for this item? Round your answer to the nearest integer. Note: use "NORMSINV" function in Excel to find the accurate z value.
2. What is reorder point? Round your answer to the nearest integer.
3. What is the economic order quantity? Round your answer to the nearest integer.
4. Using your rounded answer from last question (question 3), how many orders will be placed per year under the policy you find? Round your answer to the nearest integer.
5. Using your answers of safety stock in question 1 and EOQ in question 3, what is the average inventory level under the order policy you find (including cycle inventory and safety inventory)? Round your answer to the nearest integer.
6. What is the annual ordering cost? Note: use your answer from question 4. Round your answer to the nearest integer.
7. Using your answer from question 5, what is the annual inventory carrying cost including both cycle inventory and safety inventory? Round your answer to the nearest integer.
8. Based on your answers to question 6 and 7, what is the total annual inventory cost? Round your answer to the nearest integer.
QUESTION 9: Pandao Inc. is a fast food restaurant which offers 4 main types of sandwiches: Pando - classic (C), Pando - premium (P), Pando - exotic (E), and Pando - ultimate (U). Every day, the restaurant operates for 10 hours and it is expecting to sell 500 sandwiches. And from the past data, 30% of the demand is for C, 20% is for P, 40% is for E, and 10% is for U. There are up to five steps in the process of making sandwiches, listed below with activity times. 80% of customers want their sandwich toasted, no matter which sandwich is ordered.
|
Step
|
Classic
|
Premium
|
Exotic
|
Ultimate
|
|
Prepare bread
|
.75 minutes
|
.75 minutes
|
1.5 minutes
|
1.5 minutes
|
|
Prepare meat
|
.5 minutes
|
.8 minutes
|
1.5 minutes
|
1.5 minutes
|
|
Toast
|
.5 minutes
|
.5 minutes
|
.75 minutes
|
1 minute
|
|
Wrap
|
.5 minutes
|
.5 minutes
|
1 minute
|
.5 minutes
|
|
Checkout
|
.5 minutes
|
.5 minutes
|
.5 minutes
|
.5 minutes
|
Suppose that there is one worker at each step. Answer the following questions.
1. Defining one flow unit as one minute of work, what is the capacity per day for the worker at "Toast" step? Round your answer to the nearest integer.
2. Defining one flow unit as one minute of work, what is the demand rate per day for the worker at "Toast" step? Round your answer to the nearest integer.
3. The implied utilization rate for the worker at "Toast" step is . Ignore the percentage sign and round your answer to the nearest integer. For example, if your answer is 43.21%, input 43.
4. The implied utilization rate for the worker at "prepare bread" step is. Ignore the percentage sign and round your answer to the nearest integer. For example, if your answer is 43.21%, input 43.
5. The implied utilization rate for the worker at "prepare meat" step is. Ignore the percentage sign and round your answer to the nearest integer. For example, if your answer is 43.21%, input 43.
6. The implied utilization rate for the worker at "Wrap" step is. Ignore the percentage sign and round your answer to the nearest integer. For example, if your answer is 43.21%, input 43.
7. Worker at which step is the bottle neck resource? Input 1 for the worker at "prepare bread" step; input 2 for the worker at "prepare meat" step; input 3 for the worker at "toast" step; input 4 for the worker at "wrap" step; and input 5 for the worker at "checkout" step.
8. The manager expects a demand increase for all sandwiches due to a promotion. The daily total demand is estimated at 600 sandwiches under this promotion. The demand distribution among the four types of sandwiches also shifts to 25%, 25%, 30%, and 20% for C, P, E, and U sandwiches. Other parameters stay the same. The implied utilization rate for the worker at "Wrap" becomes . Ignore the percentage sign and round your answer to the nearest integer. For example, if your answer is 43.21%, input 43.
9. Under the new demand distribution, worker at which step is the bottle neck resource? Input 1 for the worker at "prepare bread" step; input 2 for the worker at "prepare meat" step; input 3 for the worker at "toast" step; input 4 for the worker at "wrap" step; and input 5 for the worker at "checkout" step.
QUESTION 10: Alaico Steel Inc. manufacturers steel tubes that are used in gas grills for residential customers. The tube's overall length is crucial to assure a proper fit, and this dimension has been targeted as an important dimension to be stabilized for the steel tube manufacturing process. Tubes are cut from rolls of steel tubing using a punch press. The tubes are measured using an operationally defined method and the table below summarizes the results. 8 samples have been collected. Within each sample, 6 tubes are measured.
|
Tube Length (in centimeters)
|
|
Sample
|
|
|
Number
|
X-bar
|
Range
|
|
1
|
12.56
|
0.35
|
|
2
|
13.3
|
0.5
|
|
3
|
12.76
|
0.32
|
|
4
|
13.18
|
0.44
|
|
5
|
12.43
|
0.91
|
|
6
|
12.91
|
0.42
|
|
7
|
12.9
|
0.29
|
|
8
|
13.03
|
0.58
|
Based on the information provided, answer the following questions.
1. What is X-bar-bar? Round your answer to two decimals. For example, if your answer is 11.2364, input 11.24.
2. What is R-bar? Round your answer to two decimals. For example, if your answer is 0.2364, input 0.24.
3. According to the control chart parameter table, what is A2? Round your answer to two decimals. For example, if your answer is 11.2364, input 11.24.
4. Using the answers you input in question 1, 2, and 3, what is the upper control limit of mean chart? Round your answer to two decimals. For example, if your answer is 11.2364, input 11.24.
5. Using the answers you input in question 1, 2, and 3, what is the lower control limit of mean chart? Round your answer to two decimals. For example, if your answer is 11.2364, input 11.24.
6. How many special cause variations do you identify from the mean chart? Round your answer to the nearest integer.
7. What is D4? Round your answers to two decimals if needed.
8. Using your answers for questions 2 and 7, what is the upper control limit of range chart? Round your answer to two decimals. For example, if your answer is 11.2364, input 11.24.
9. What is the lower control limit of range chart? Round your answer to two decimals. For example, if your answer is 11.2364, input 11.24.
QUESTION 11: One new engineering team is put together for the development of a new product. This new product will be built through an assembly line. The production manager designs the assembly line. He has been advised that the assembly line must be ready in four weeks (20 working days) for a test run. The manager decided to use CPM (critical path method) and has broken down the projects into the following activities, determined their precedence relationships, and estimated normal times:
|
Activity
|
Immediate Predecessors
|
Normal Time (days)
|
Crash Time (days)
|
Crashing Cost ($/ day)
|
|
a. organize layout team
|
none
|
5
|
5
|
-
|
|
b. organize modification team
|
none
|
3
|
3
|
-
|
|
c. design personnel jobs
|
a, b
|
2
|
1
|
500
|
|
d. set machinery in place
|
none
|
3
|
1
|
2500
|
|
e. connect utilities
|
d
|
7
|
4
|
1000
|
|
f. modify conveyor system
|
c, e
|
4
|
3
|
1200
|
|
g. train personnel
|
c
|
3
|
3
|
-
|
|
h. finishing touches
|
f, g
|
5
|
3
|
800
|
|
i. run test lot
|
h
|
2
|
2
|
-
|
Based on the information provided above, answer the following questions.
1. What is the project earliest completion time in days? Round your answer to the nearest integer.
2. What is the EST of activity g? Round your answer to the nearest integer.
3. What is the LST of activity c? Round your answer to the nearest integer.
4. What is the EFT of activity g? Round your answer to the nearest integer.
5. What is the slack time of activity g? Round your answer to the nearest integer.
6. How many critical tasks are on the critical path (excluding S and T)? Round your answer to the nearest integer.
7. The manager would like to expedite the project by 1 day. According to the crashing data provided in the table, which task should be expedited? Input the task label here. For example, if your answer is a - organizing layout team, input a.