Test exam
Examination: Operations Management and Logistics (BCU201A)
Date: 07-01-2021
Time of examination:
Total number of pages examination: 12
Total number of questions: 30 multiple-choice questions
Questions
1. Growing firms that want to scale up their production process to introduce a second product and
improve their workflow ordering likely change:
A. From a product-based workflow to a functional based workflow
B. From a simultaneous production process to a batch-based process
C. From a functional-based workflow to the product-based workflow
D. The volumes of the batches of products produced
2. Many firms implementing a sustainable operations and supply chain strategy face the environmental
dilemma of:
A. Making a choice between social responsibility and environmental stewardship
B. Investing in a new business model or in clean production technologies
C. Choosing between biodegradable vs recycling materials
D. Staying in the same industry or moving to a different industry
3. Quality Function Deployment is a way to:
A. Determine the quality of the functioning of the product
B. Link customer requirements to technical specifications of the product
C. Forecast quality issues in function deployment
D. Simplify products and processes by achieving equivalent or better performance at a lower cost
4. The following table represents a project that should be scheduled using CPM. What is the expected
project completion time?
Activity
Immediate
a
m
b
ET
σ2
Predecessors
A
—
1
3
5
3
0.4444
B
—
1
2
3
2
0.1111
C
A
1
2
3
2
0.1111
D
A
2
3
4
3
0.1111
E
B
3
4
11
5
1.7778
F
C, D
3
4
5
4
0.1111
G
D, E
1
4
6
3.833
0.6944
H
F, G
2
4
5
3.833
0.25
A.
B.
C.
D.
Almost 15 days
Almost 17 days
Almost 18 days
Almost 19 days
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5. Plant A is located at the (X, Y) coordinates of (200, 500) and has a volume of shipping of 400 units
a day. Plant B is located at the (X, Y) coordinates of (300, 100) and has a volume of shipping of 300
units a day. Using the centroid method, which of the following is the X coordinate for the new plant
location? Use rounded figures.
A.
About 208
B.
About 227
C.
About 243
D.
About 389
6. Suppose Supermarket chain Albert Hein has got 2 national warehouses, one in The Netherlands and
one in Belgium, and 4 regional warehouses, two in each country. Which of the following warehouse
design systems would Albert Hein use to have most efficient transportation of groceries?
A. Consolidation system
B. Cross-docking system
C. Hub-and-spoke system
D. Two Cross-docking systems
7. The owner of a large machine shop has just finished its financial analysis from the prior fiscal year.
Following is a table from the final report. The number of weeks of supply is 18.1. Compute the
inventory turnover ratio (ITR). (Round your answer to 1 decimal place.)
Net revenue
Cost of goods sold
Value of production materials on hand
Value of work-in-process inventory
Value of finished goods on hand
A.
B.
C.
D.
$
$
$
$
$
350,000
307,000
42,500
47,000
17,500
0.3
2.9
7.4
8.1
8. Implementation of ERP Systems is not always successful, because of various reasons.
Which critical success factors are most important?
A. Project team, technical possibilities, software testing, education and training, minimum
customization.
B. Project team, technical possibilities, communication, organizational change management,
top management involvement.
C. Project team, technical possibilties, Performance measurement, business process
alignment, project support.
D. None of these.
9. Calculate the cash-to-cash cycle time of the firm in days based on the following metrics
table. (Round to one decimal place).
Average days of accounts receivable
Average daily cost of sales
Current total value of inventory
Current value of accounts payable
days
$
$
$
2
7
37,000
350,000
250,000
A.
B.
C.
D.
5.0
7.0
9.2
9.7
10. The following tabulations are actual sales of units for six months and a starting forecast in January.
Calculate the Mean Absolute Deviation with respect to all the forecasts, including January's, using
simple exponential smoothing with a constant of 0.3. (Round your answer to 1 decimal place.)
January
February
March
ACTUAL
102
98
101
April
May
June
84
71
98
A.
B.
C.
D.
FORECAST
82
2.2
13.0
13.8
83.0
11. A company wants to forecast demand using the weighted moving average. If the company
uses two prior yearly sales values (i.e., year 2015 = 110 and year 2016 = 130), and we want to
weight year 2015 at 10 percent and year 2016 at 90 percent, which of the following is the
weighted moving average forecast for year 2017?
A. 120
B. 128
C. 133
D. 138
12. The following table displays a production plan for company Y. Which of the four
production plans does it represent?
3
A.
B.
C.
D.
Varying workforce size.
Constant workforce and use overtime to meet additional output requirements.
Constant workforce, and subcontract to meet additional requirements.
Constant workforce and use straighttime costs to meet additional requirements.
13. A company wants to determine its Reorder point. Demand is variable and the company
wants to build a safety stock into the Reorder point. If the average daily demand is 12, the
lead time is 5 days, the desired z value is 1.96, and the standard deviation of usage during lead
time is 3, which of the following is the desired value of Reorder point? Use rounded figures.
A. About 6
B. About 16
C. About 61
D. About 66
14. Almost certainly you have seen vending machines being serviced on your campus and elsewhere.
On a predetermined schedule the vending company checks each machine and fills it with various
products. This is an example of which inventory model?
A. Fixed-time period model
B. Fast fill model
C. Fixed order quantity model
D. Single period model
15. In the following MRP planning schedule for Item J, indicate the correct net requirements, planned
order receipts, and planned order releases to meet the gross requirements. Lead time is one week.
(Leave no cells blank - be certain to enter "0" wherever required.) What is the number of planned
order releases in week 3?
WEEK
NUMBER
ITEM J
0
1
2
3
4
5
Gross requirements
71
51
72
On-hand
37
Net requirements
Planned order receipt
Planned order release
A. 0
B. 34
C. 51
D. 72
16. Which of the following statements about customer involvement in service processes is best?
A. In service industries, customer contact is of minor importance.
B. High task divergence and flexible process flows require more flexibility of the process’s employees,
facilities and equipment.
C. A firm that produces standardized products often seeks customer specifications.
D. When customer involvement is highly customized, a process is more likely to use a standardizedservices process rather than a customized-services process.
17. A job process should be preferred when:
A. workforce and equipment are specialized.
B. products are made to stock type.
C. customization is high and volume is low.
D. customization is low and volume is high.
4
18. Robby’s Carwash is a manual carwash that does a mean job of cleaning cars. It is also renowned for
the speed of work as well as a customer friendly service. Robby, the owner, would like to improve the
process and reckons his capacity will increase if the delays can be cut from the process.
What is the maximum capacity per hour, in a carwash service without delays?
A.
B.
C.
D.
6
5.1
10
5.6
19. Supermarket stock clerks are responsible for replenishing the shelves of grocery stores. Other job
activities include ensuring a pleasant appearance of the store, adding new items to shelves, moving
merchandise to the floor, and discarding expired or defective items.
When a truckload of replenishments arrives, all goods need to be moved to the shelves as quickly as
possible. The norm for any stock clerk over 16 years old, is to move 75 colli/hr onto the shelves. But
most supermarkets use a factor of 0,85 to that norm in their planning. Peter and his team of clerks (he
likes to call them heroes) are capable of doing 58 colli/hr on their shift.
Calculate the efficiency of Peter and his team:
A. 91%
B. 85%
C. 77%
D. 68%
20. A bank randomly looks at loan applications and checks them for errors. Ten applications and the
number of errors identified on the applications are found in the following table. When the process is
working correctly, the average number of errors found is 2. Is the process in control?
5
Application number
Number of errors
1
2
3
4
5
6
7
8
9
10
3
0
1
0
3
2
4
4
1
1
A. The process is in control, the output stays within the upper and lower limits.
B. The process is only just in control, since the output touches the lower level quite often and the
average is also leaning towards the lower end.
C. The process is not in control since the variation is not evenly distributed.
D. The measure of process control cannot be read from these data; this would require an R-chart.
21. A metal-cutting operation has a target value of 20 and consistently averages 19.8 with a standard
deviation of 0.5. The design engineers have established an upper specification limit of 22 and a lower
specification limit of 18. What is the process capability index of this operation?
A. 1.20
B. 1.33
C. 1.46
D. 1.66
22. HappyToys Plc. uses a Kanban system. The daily demand for the most critical part, the Smylie, is
400 units over an eight-hour production period. The average waiting time for a container of Smylies is
30 minutes. The processing time for a container filled with Smylies is 6 minutes, and a container holds
5 units. If the company wishes to use a 5% policy variable, how many containers are needed?
A. 5
B. 6
C. 7
D. 8
23. An item sells at a rate of 600 units per day. If a plant works two shifts per day (480 minutes each
shift), what cycle time is required for the plant to meet this demand?
A. 48 seconds/unit
B. 96 seconds/unit
C. 66 seconds/unit
D. 144 seconds/unit
24. In a lean system, a flexible work force is important for all of the following reasons EXCEPT:
A. A flexible work force allows employees to be shifted among work stations to help relieve
bottlenecks.
B. A more customized service or product increases the need for a multi-skilled workforce.
C. Job rotation tends to relieve boredom and refresh workers.
D. A mixed-model assembly approach requires that workers do the entire job to complete a service or
product.
25. The manager of Solid Winds has identified the assembly process of small windmills as the
major source of all sorts of production issues. He has therefore commissioned a value stream
map, which can be found below.
6
Which of the following answers is the correct measure of value-added time of this process and the
percentage of value-added time in the process?
A. 9,5 hrs and 7,4%
B. 9,5 hrs and 8,0%
C. 7,5 hrs and 6,7%
D. 8,5 hrs and 17,3%
26. The production of rotor blades on a Solid Winds turbine is subjected to strict demands with regard
to the diameter of the connecting joint that attaches the rotors to the turbine. A turbine in operation
should be able to withstand gale force winds and produce electricity under all possible circumstances.
So, it is vital to get things right the first time. Solid Winds uses statistical process control to monitor
the diameter of the joint. The ideal size of which has been set at 115 cm. Specifications allow a
variation of a maximum of 0,1%. Regular sampling has revealed that the average diameter in
production is 115,06 cm. The standard deviation of the samples is 5.
What is the capability index of the process?
A. 0,09
B. 0,29
C. 0,20
D. 0,12
27. The Basic Block Company needs to produce 4000 boxes of blocks in a 40 hour work week. The
process of making blocks can be broken down into six work elements. The precedence and time
requirements for each element can be found in the table below.
Work element
A
B
C
D
Precedence
A
A
-
Performance time (min)
0,10
0,40
0,50
0,20
7
E
F
C, D
B, E
0,60
0,40
What is the efficiency of a balanced assembly line?
A. 91,7%
B. 109,1%
C. 73,3%
D. 61,1%
28. The workshop of AluSafe Inc. employs six people to produce automatic barriers that help manage
access to parking spaces. Three of whom work on the production of the actual beam that constitutes
the barrier. The others are involved with motor driving the barrier and the steel casing in which it is
housed.
The production process itself takes a start with the collection of an appropriate beam from the outside
storage area. Crude beams of different lengths and sizes are delivered on a quarterly basis by a
supplier, based on a crude forecast of demand. Beams of specific sizes can be delivered by special
request. The collected beam is placed on holders and then cut to the length required. Then holes need
to be drilled by using moulds in order to place light fittings at equal distance. A connecting steel plate
will then be screwed to the end of the beam which makes for the connector with the engine after
installation of the complete system. Any defective beam can thus be easily replaced without affecting
the engine.
The beams are then placed on a trolley, that fits about thirty. Twice a week, on average, this will be
wheeled across the street to an independent paint shop across the street. The beams will receive a
powder coating in red and white, which is characteristic for this type of barrier. Special requests, such
as specific colours or fast delivery, will receive separate treatment. After two days, the beams will be
returned after which they are outfitted. Electric wiring is drawn through the length of the beam and
fittings are plugged in. Deflectors and lamps are being applied and the whole systems is tested before
packaging. Faulty items need inspection and rework before being tested again.
The complete beam will be place in storage, each with an engine in case to make up a complete
system.
Customers from all over Europe place orders for AluSafe barriers. They are valued for their sturdiness
and reliability. Two or three times a week shipments will be collected by the logistics partner of the
company.
Which of the following flowcharts is the best representation of the production process as described
above?
A.
8
B.
C.
D.
9
A. Flowchart A
B. Flowchart B
C. Flowchart C
D. Flowchart D
29. A single ticket taker can tear tickets and direct movie patrons to their seats at a rate of 90 per hour.
Customers arrive every minute for assistance and always wait, regardless of how long the line gets.
Arrivals are governed by the Poisson distribution and service is governed by the exponential distribution.
What is the average number of customers in line?
A. 0.33
B. 0.66
C. 1.33
D. 2.00
30. Which one of the following statements is TRUE?
A. Two operating rules for the Kanban system are (1) the container size should be equal to at least seven
days of supply and (2) each container must have a Kanban card.
B. The Kanban system is more effective when the assembly schedule calls for small lots and does not
fluctuate much from day to day.
C. The number of Kanban cards should be equal to the desired safety stock times alpha.
D. Supplier performance is much more important in U.S. environments than such factors as lot sizes,
scrap losses, and worker flexibility.
10
Formula’s
WS = (Average aggregate inventory value / costs of goods sold) x 52 weeks
C-to-C cycle time = ARd + Id − APd (where Id=I/Cd and APd=AP/Cd)
Ft+1 = Ft + α(At − Ft)
11
Appendix Normal distribution table
12