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Final Exam Pom

The document contains a final exam with multiple choice and written questions covering operations management topics like inventory management, scheduling, and aggregate planning. The multiple choice section has 30 questions testing concepts like economic order quantity, ABC analysis, and sequencing rules. The written questions involve calculating safety stock and reorder points given demand data and determining hiring and layoff costs under a chase strategy given production and demand figures over four quarters.

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20 views

Final Exam Pom

The document contains a final exam with multiple choice and written questions covering operations management topics like inventory management, scheduling, and aggregate planning. The multiple choice section has 30 questions testing concepts like economic order quantity, ABC analysis, and sequencing rules. The written questions involve calculating safety stock and reorder points given demand data and determining hiring and layoff costs under a chase strategy given production and demand figures over four quarters.

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NGÂN PHẠM NGỌC THẢO
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© © All Rights Reserved
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FINAL EXAM POM

MUTIPLE CHOICES (60 PTS)


Question 1 (L0311) Which of the following is an advantage of the FCFS
dispatching rule when used in services?
A. FCFS maximizes utilization.
B. FCFS minimizes the average number of on jobs in the system
C. FCFS minimtes the average lateness of all jobs
D. FCFS maximizes on the number of jobs completed on time
E. FCFS seems fair to customers
Question 2 (10211) Break even analysis finds the point at which
A. costs equal revenues
B. costs are double revenues
C. costs are more than revenues
D. costs are less than revenues
Question 3(1.0.3.7) Consider the following product structure

If the demand for product A is 50 units, how many units of component D will be
needed?
A. 50
B. 100
C. 150
D. 200
E. 300
Question 4 (1.0.2.11): A product-focused process is commonly used to produce:
A. high-volume, high-variety products.
B. low-volume, high-variety products.
C. high volume, low variety products.
D. low variety products at either high or low-volume.
E. high-volume products of either high or low-variety
Question 5 Which of the following products is likely to be assembled on a
repetitive process line?
A. custom personal computers
B. custom cakes
C. steel
D. automobiles
E. beer
Question 6 One of the similarities between product focus and mass-customization
is
A. the use of modules
B. many departments and many routings.
C the volume of outputs.
D. the variety of outputs
E. All of these are similarities.
Question 7 (L0212) Kirstin is thinking about opening an Italian restaurant and
needs to buy a dough maker. Machine A has fixed costs of $300 and variable
costs of $1/pound. Machine B has fixed costs of $1000 and variable costs of
$0.30/pound. For 500 pounds of dough, which machine is better?
A. Machine A
B. Machine B
Question 8 (L.O.3.4): Which item to order and with which supplier the order
should be placed are the two fundamental issues in inventory management.
A. TRUE
B. FALSE
Question 9 (L034) Work-in-process inventory is devoted to maintenance, repair,
and operating materials
A. TRUE
B. FALSE
Question 10. Which of following is a function of inventory?
A) to decouple various production process parts of the
B) to provide a selection of goods for anticipated customer demand and to separate the
firm from fluctuations in that demand
C) to take advantage of quantity discounts
D) to hedge against inflation
E) All of these are functions of inventory.
Question 11 (L0.34): Which of the following is NOT one of the four main types of
inventory ?
A) raw material inventory
B) work-in-process inventory
C) maintenance repair operating supply inventory
D) safety stock inventory
E) finished-goods inventory
Question 12 Which of the following statements about ABC analysis is FALSE?
A. ABC analysis is based on the presumption that controlling the few most important
items produces the vast majority of inventory savings.
B. In ABC analysis, forecasting methods for "C" items may be less sophisticated than
for "A" items.
C. ABC analysis is based on the presumption that all items must be
tightly controlled to produce important cost savings.
D. Criteria other than annual dollar volume, such as high holding cost or delivery
problem, can determine item classification in ABC analysis.
Question 13 (LO.3.4): Which of the following is an element of inventory holding
costs?
A. housing costs
B. material handling costs
C. pilferage, scrap, and obsolescence
D. All of these are elements of inventory holding costs.
Question 14 (L.O.3.5): Variations in setup costs, holding costs, and demand
usually make relatively modest differences in cost because the EOQ model is
robust
A TRUE
B. FALSE
Question 15 (1.0.3.5) Which of the following is NOT an assumption of the
economic order quantity (EOQ) model
A. Demand is known constant independent.
B. Lead time is known and consistent
C. Quantity discounts are not possible.
D. Production and use occur imultaneously.
E. The only variable costs are setup cost and holding (or carrying) cost
Question 16 (1.0.3.5): A certain type of computer costs $10 per unit, and the
annual holding cost is 25% of the value of the item. Annual demand is 1,000
units, and the order $150 per order. What cost is approximate economic order
quantity?
A. 120,000
B. 866
C. 110
D. 1,095
E. 346
Question 17 (LO.3.10) Flow time represents the time:
A. an order spends waiting for processing at a work center,
B. an order spends being processed at a work center.
C. an order spends moving from one work center to another.
D. to complete an order, including time spent in processing and in waiting.
E. none of the these
Question 18 (L.O.3.1): Under which of the following do planning tasks associated
with job assignments, ordering, job scheduling and dispatching typically fall?
A. short-range plans
B. intermediate-range plans
C. long-range plans
D. mission-related planning
E. strategic planning
Question 19 (L.O.3.1): What is the typical time horizon for aggregate planning?
A. less than a month
B. up to 3 months
C. 3 to 18 months
D. over 5 years
Question 20 (L.O.3.1): Which of the following is NOT an input to S&OP
A. capacity decision
B. supply-chain support
C. workforce
D. inventory on hand
E. master production schedule
Question 21 (L03.2) Which of the following aggregate planning strategies in
capacity option?
A. influencing demand by changing price
B. counter-seasonal product mixing
C. influencing demand by extending lead times
D. changing inventory levels
E. influencing demand by back ordering
Question 22 Low-level coding means that
A. a final item has only a few levels in the BOM structure.
B. the code being used is the code for the lowest level in the BOM structure.
C. a component item is coded at the lowest level at which it appears in the BOM
structure.
D. the top level of the BOM is below level zero and that BOMs are not organized
around the finished product.
E. the lowest-paid staff member in the production department performs the coding

The given information is applied for question 23 and question 24


Consider the following requirements for an office chair product
Week 1 2 3 4 5 6
Gross 100 100 400 500 0 400
requirements
The company has a setup cost of $90, a holding cost per week of $5, beginning
inventory of 300, and lead time of 2 weeks.
Question 23: What is the total inventory holding cost if using a lot-for-lot policy
for this six-week inventory period?
A. $1,770
B. $1,500
C. $270
D. $1,680
E. $3,270
Question 24: What is the total setup cost of using a lot-for-lot policy for this six-
week inventory period?
A. $1,770
B. $1,500
C. $270
D. $1,680
E. $3.270
Question 25: What is the objective of scheduling?
A. maximize quality
B. minimize cost
C. minimize lead time
D. prioritize and allocate demand to available facilities

The information below if used for question 26 & 27


Montegut Manufacturing produces a product for which the annual demand is
10,000 units. Production averages 80 units per day, while demand is 60 units per
day. Holding costs are $5.00 per unit per year, and setup cost is $200.00
Question 26: If the firm wishes to produce this product in economic batches,
what size batch should be used?
A. 2,000 units
B. 1,789 units
C. 895 units
D. None is correct
Question 27 (LO35) What is the maximum inventory level?
A. 1,000 units
B. 895 units
C. 447 units
D. 200
The information below is used for question 28-29-30
The jobs listed below need to be completed.

Question 28 (L.O.3.11): If the jobs are to the shortest sequenced according


processing time rule, in which order should the jobs be processed?
A. A-B-C-D-E
B. B-A-C-E-D
C. A-C-B-D-E
D. All are incorrect.
Question 29 (L.O.3.11): If the jobs are sequenced according to the shortest
processing time rule, the lateness of job A is:
A. 0 day
B. 1 day
C. 2 days
D. All are incorrect.
Question 30 (LO.3.11): If the jobs are sequenced according to the earliest due date
rule, in which order should the job processed?
A. A-B-C-D-E
B. B-A-C-E-D
C. A-C-B-D-E
D. All are incorrect

II. WRITING (40 PTS)


Question 31 (L.0.3.7) (10pts) Thomas' Bike Shop stocks a high-volume item that
has a normally distributed demand during lead time. The average daily demand
is 100 units, the lead time is 4 days, and the standard deviation of demand during
lead time is 20.
(a) How much safety stock provides a 90% (Z = 1.28) service level to Thomas?
(5pts)
(b) What should the reorder point be? (5pts) (L0.86)
Question 32 (L.0.3.1, L.O.3.2, L.O.3.3) (15pts) A firm practices a chase strategy.
Production last quarter was 1000. Hiring cost is $20 per unit, and layoff cost is $5 per
unit. Demand over the next four quarters is given in Table below:

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