MGT 314 | M2
Set1 | C 5, 6, 12, 13
» Read the question at least twice to understand it and answer accordingly (objectively).
» Keep the readings (textbook, lectures) in mind and/or provide details including any assumption(s).
» Select the best. Use the blank-side if you need additional space and make sure your reference it.
» If a question asks for explanation, include an example. A fill-in the blank (FB) can include more than one word. Describe in case you
understand the topic but do not remember the exact word. If a question calls for a list, you do not need to describe.
Fill in your NSU ID (on the bottom). Answer all MCs, TFs, FBs, SQs,and any 2 DQs.
13 x2 + 11 x2 + 14 x3 + 12 x4 + 2 x10 = 158
MC 1. Efficiency, in
capacity terms, is the ratio of:
 Actual output to effective capacity  Units produced to labor hours used
 Effective capacity to actual output  Design capacity to effective capacity
 Design capacity to actual capacity
 All of these
 Some of these
 None of these
MC 2. Given the following
information: Effective capacity = 45
units per day; Design capacity = 60
units per day; Actual output = 30 units
per day, what is the utilization?
MC 3. The maximum output rate
or service capacity an operation,
process or facility is designed for is the
 25%
 33.3%
 50%
 All of these
 Some of these
 Effective capacity
 Efficiency peak
 All of these
 75%
 None of these
 Theoretical throughput
 Design capacity
 Some of these
 None of these
MC 4. The system that has the
highest equipment flexibility is
 a job shop
 a batch system
 repetitive production
 continuous processing
 All of these
 Some of these
 None of these
MC 5. An operations strategy for
process selection should recognize
that:
 process selection is easily changed
 engineering is solely responsible for choosing what process is best
 there is little need to manage technology
 managers need not have technical skills
 All of these
 Some of these
 None of these
MC 6. Which one of the following
is generally regarded as an advantage
of product layouts?
 Material handling costs per unit are low.
 Labor costs are low per unit.
 The system is fairly flexible to changes in volume of output.
 unit costs may be lower than with other processes
 There is high utilization of labor and equipment
 All of these
 Some of these
 None of these
MC 7. In a product layout, the
process of deciding how to assign tasks
to work stations is referred to as:
 process balancing
 line balancing
 All of these
MC 8. An automated car wash
has three stations; wash which takes
0.6 minutes, rinse at 1.1 minutes and
dry at 0.7 minutes. The maximum cycle
time in minutes is:
MC 9. What items do average
consumers typically buy on an ROP
basis?
 0.6
 0.7
 1.4
 1.6
 1.7
 3.2
 All of these
 Some of these
 2.4
 3.4
 None of these
 magazines & newspapers
 gas (for car)
computer software
 All of these
 Some of these
 kacchi biryani
 gift items
 None of these
Ayn | Spring 2012
NSU ID Page 1 of 5
 task allocation
 station balancing
 scheduling
 Some of these
 None of these
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MGT 314 | M2
Set1 | C 5, 6, 12, 13
MC 10. Which one of the following
is a requirement for effective inventory
management?
 A system to keep track of inventory on hand
 A classification system for inventory items
 Reasonable estimates of holding and shortage costs
 All of these
 Some of these
 None of these
MC 11. In the basic EOQ model, if
annual demand is increased by 50%,
the effect on the EOQ is:
 It is four times its previous amount
 It is half its previous amount  It increases by about 50 percent
 It is about 70 percent of its previous amount
 It doubles
 Some of these
 None of these
MC 12. Which one of the following
is not a basic option for altering
capacity?
 Hire and fire workers
 Use overtime
 Use subcontracting
Use backorders
 All of these
 Some of these
 None of these
MC 13. One option for altering the
availability of capacity is:
 overtime
pricing
 promotion
 All of these
 Some of these
TF- 1. Increased capacity can be expected by increasing productivity and quality.
TF- 2. Increasing capacity in the operation following a bottleneck operation will
improve the output of the process.
TF- 3. Understanding our needs, including what kind, how much, and when is key to
doing effective capacity planning.
TF- 4. Flexible manufacturing systems can handle a large variety of similar products.
TF- 5. Process layouts usually require less-skilled workers than product layouts.
TF- 6. Cycle time is the average amount of clock time required to produce one unit of
output.
TF- 7. Reorder point models are primarily used for dependent demand items.
TF- 8. Space considerations are not included in any of the economic ordering models.
TF- 9. An assembly line may have workstations in parallel but will always have
workstations in series.
TF- 10. Disaggregating an aggregate plan involves creating a master schedule for
production of the end items included in the aggregate plan.
TF- 11. Company policy and costs have little or no impact on aggregate planning.
 backorders
 None of these
 True
 True
 False
 False
 True
 False
 True
 True
 True
 False
 False
 False
 True
 True
 True
 False
 False
 False
 True
 False
 True
 False
For starting a new pastry at Shumi's Bakery, the fixed Cost is 200,000 taka. Revenue per pastry is 40 taka and the
variable cost per unit is 22 taka.
FB 1. How many of these pastries must the
bakery sell for breaking even?
FB 2.
What would be the total cost?
FB 3. One drawback of ____ layout is that
equipment utilization rates are lower than in a
process layout.
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MGT 314 | M2
FB 4.
Set1 | C 5, 6, 12, 13
Aggregate planning is ____-range planning .
Item
Usage
Unit Cost
4021
50
1400
9402
300
12
4066
40
700
6500
150
20
9280
10
1020
4050
80
140
6850
2000
15
3010
400
20
4400
7000
5
FB 5.
FB 6.
Classification Lower Limits
and
Fill in the table above with the ABC classification
Period
Forecast
1
2
3
4
5
6
7
8
9
190
230
270
280
210
170
160
260
180
Total
# Employees
Regular output
Inventory Beginning
Inventory Ending
Inventory Average
Backlog
Cost- Regular Output
Cost- Inventory
Cost- Backorder
FB 7. Assuming an employee can produce 5 tables a day, use the forecast of tables to determine the number of
employees using a level approach/strategy and the regular output. (fill inside the table)
FB 8. Determine the inventory levels and backlog (if any) assuming an initial inventory of zero
FB 9. Determine the costs assuming regular output cost is 50 taka per unit, inventory carrying cost is 50 taka
per unit and backorder cost is 50 taka per unit.
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MGT 314 | M2
Set1 | C 5, 6, 12, 13
Station:
1
2
3
4
5
6
Task Time
Idle Time
Percentage Idle Time
Efficiency
FB 10. Using the diagram above, allocate work to the different workstations assuming minimum cycle time
FB 11. Determine the “Task time” and Idle time
FB 12. Calculate percent idle time and efficiency
In a reorder point model, the daily demand rate is normally distributed with a mean of 70 units and a standard
deviation of 10 units. The lead time is 9 days, and the lead time service level (LTSL) is 90%.
FB 13. What are approximate values
for Safety Stock?
FB 14. What are approximate values
for Reorder Point?
SQ- 1. List two reasons “why
capacity decisions are
strategic”?
SQ- 2. List two determinants of
effective capacity.
SQ- 3. Define break-even point
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MGT 314 | M2
Set1 | C 5, 6, 12, 13
SQ- 4. List two of the four process
types
SQ- 5. Define a manufacturing cell ()
SQ- 6. List three of the different
kinds of inventories
manufacturing firms carry
SQ- 7. List three demand options in
aggregate planning.
SQ- 8. List three capacity options in
aggregate planning.
SQ- 9. Define “rough-cut capacity
planning”.
SQ- 10. List three inputs of master
production scheduling
SQ- 11. Explain the “frozen”
scheduling phase.
SQ- 12. For a particular product, if
Annual Demand is 10,000
units with an ordering cost is
500 taka per order and an
annual carrying cost is 40
taka per unit. The working
days are 360 per year. What
would be the EOQ
DQ- 1.
DQ- 2.
DQ- 3.
DQ- 4.
Explain what a bottleneck operation is and how that can affect operations.
Draw a U-shaped line and explain the layout using five advantages.
Explain with a diagram how closeness ratings are used in a process layout.
Compare and contrast the fixed order interval model and the ROP model.
Answer your DQs on the left side of the page.
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