Professor Blake OPM 101 Name__________________________
Spring 2010
EXAMINATION 2, Version E
Use a Scantron Form No. 886-E to record your choice of the best answer to each of the following questions. You have the full period to answer the questions.
The following questions are worth three (3) points each.
1. What are the two categories of quantitative models? a) Delphi and non-causal b) Causal and non-causal c) Delphi and time series d) Causal and time series e) Causal and Delphi
2. In linear regression, what are we trying to forecast? a) Beta parameter b) Dependent variable c) Independent variable d) Y-intercept of the line e) Slope of the line
3. What is the mean absolute deviation of the following forecasts? a) 3174
Month Actual Sales Forecast
Jan. 614 600
Feb. 480 480
Mar.
Apr.
500
500
550
600 b) 164 c) 41 d) 136 e) -34
4. The first step in forecasting is: a) determine what data is available
[error]
14
0
50
100
164 / 4 = 41 b) decide what to forecast c) evaluate and analyze appropriate data d) select and test the forecast model e) establish the forecast accuracy requirements
5. The maximum output rate that can be sustained under normal conditions is
_______________________. a) utilization b) design capacity c) effective capacity d) ultimate capacity e) temporary capacity
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Professor Blake OPM 101 Name__________________________
Spring 2010
6. The first step in making a capacity planning decision is __________________________________. a) evaluate capacity alternatives b) implementation c) identify capacity requirements d) develop capacity alternatives e) weight capacity objectives
7. Service organizations such as restaurants, movie theaters, and banks focus on locating near
____________. a) suppliers b) roads c) intersections d) their customers e) potential workers
8. Disadvantages of globalization include ______________________________________________. a) use of cheap labor in certain countries b) increased stigma due to locating factories overseas c) reduction of trade barriers d) increased sales in foreign markets e) political risks for countries with unstable governments
9. Which of the following is more like a product layout as compared to a process layout ? a) Resources used are general purpose. b) Facilities are less capital intensive. c) Processing rates are faster. d) Space requirements for inventory storage are higher. e) Scheduling resources is more challenging.
10. A hybrid layout combines a) fixed and product b) fixed and process c) inverted and product d) services and manufacturing e) process and product
11. For the general warehouse layout problem, which department should be located furthest from the dock? a) least trips needed b) most area needed c) highest ratio of trips needed to area needed d) smallest ratio of area needed to trips needed e) smallest ratio of trips needed to area needed
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Professor Blake OPM 101 Name__________________________
Spring 2010
12. What is the term for the maximum amount of time each workstation has to complete its assigned task? a) output rate b) task time c) station time d) cycle time e) output time
13. What occurs when a customer enters one line and then switches to a different line in an effort to reduce his or her waiting time? a) balking b) walking c) reneging d) vacillating e) jockeying
14. Customers generally consider which of the following priority rules to be the fairest? a) quickest service requirements first b) longest service requirements first c) first-come, first-served d) best customers first e) highest profit customer first
15. Which of the following is not considered to be a valid performance measure of a waiting line system? a) the average number of customers waiting in line b) the average number of customers in the system c) the average amount of time customers spend waiting d) the system utilization rate e) the service pattern
16. Which of the following is not an assumption of the waiting line models presented in the textbook? a) the customers are patient b) customers come from an infinite population c) customer arrival rate is described by a Poisson distribution d) service times are described by an exponential distribution e) in a multi-phase system, a server can serve more than one customer at a time
17. What are small groups of employees who meet to identify, analyze, and solve operational problems called? a) traditional work groups b) cross-functional teams c) self-managed teams d) problem-solving teams e) special-purpose teams
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Professor Blake OPM 101 Name__________________________
Spring 2010
18. The time is the time it should take a qualified operator, working at a sustainable pace and using the appropriate tools and process, to do the job. a) performance b) observed c) normal d) standard e) ideal
19. What is a technique for estimating the proportion of time an employee or machine spends on different work activities? a) predetermined time data b) time elements c) stopwatch time study d) work sampling e) simultaneous motion study
20. A qualitative forecast is made subjectively by the forecaster. a) True b) False
21. The ratio of actual output rate to capacity is utilization. a) True b) False
22. The cycle time of a production line is based on the workstation with the highest potential output rate. a) True b) False
23. If the number of customers you can serve per time period is more than the average number of customers arriving, the waiting line grows infinitely. a) True b) False
24. The standard time is the time it should take a qualified operator, working at a sustainable pace and using the appropriate tools and process, to do the job. a) True b) False
The following problems are worth ten (10) points each.
1. John’s Office Supply Company has the following order history over the last 8 months.
April 50
May
June
July
August
September
October
November
75
160
120
80
120
180
90
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Professor Blake OPM 101 Name__________________________
Spring 2010
Compute a 3-month weighted moving average forecast for December, with a weight of 65% for the most recent month, 25% for the month preceding the most recent month, and 10% for the month preceding that one.
[(.65 * 90) + (.25 * 180) + (.10 * 120)] = [58.5 + 45 + 12] = 115.5
2. Supershirtco plans to open a new factory and is looking for a suitable location. They have narrowed their choice down to three locations, Lima, Peru; Rome, Italy; and Nome, Alaska. They have defined four factors and have assigned weights to these factors as follows: wage rates (60), construction costs (20), logistics (10), and climate (10). They then rated the three locations for the four factors, using a scale of one to five. Their ratings are as follows:
Factor
Wage rates
Construction costs
Weight Location
Lima Rome Nome
60
20
5
4
300
80
3
2
180
40
1
5
Logistics
Climate
10
10
100
3
3
30
30
440
2
5
20
50
290
5
1
60
100
50
10
220
(a) Calculate the scores for each location.
Lima 440 Rome 290 Nome 220
(b) According to the model which location should they choose?
Choose Lima as it has the highest weighted score.
3. Consider a single-line, single-server waiting line system. Suppose that customers arrive according to a Poisson distribution at an average rate of 60 per hour, and the average (exponentially distributed) service time is 45 seconds per customer. What is the average utilization of the system?
λ = 60 customers/hour
μ = 80 customers/hour (3600sec/hour) / (45sec/customer) = 80 customers/hour
ρ = λ/μ = 60/80 =
.75 or 75%
5