HW Assignment Due Oct 9th
Multiple choice
1. Animal shelters tend to order sodium barbipentathol in large batches (e.g., enough to last 6 months or
more). Smaller quantities would be ordered (e.g., a couple of weeks worth) except government
regulations require extensive and detailed paperwork to be submitted with each order. This example is
most closely related to the following managerial insight:
a. the order quantity increases as the holding cost rate decreases
b. the order quantity increases as the cost per order increases
c. the order quantity increases as the shortage cost rate decreases
d. the order quantity increases as the trade balance decreases
e. All of the above
2. Which one of the following does not exemplify JIT/Lean used for competitive advantage?
a. Acme Foods decides to decrease the number of its suppliers to just a few.
b. Cajun Contractors has reduced the amount of space for inventory.
c. Cheramie Trucking trains workers to specialize and become very efficient in one job.
d. Ardoyne Builders has a scheduled preventive maintenance program.
e. Ajax, Inc. is proud to announce that incoming goods are delivered directly to the point of use.
3. A tennis ball manufacturer has identified several causes of variability in the bounce and has collected
data on the number of times those causes have led to high variability over the past month. They now
need to decide which causes to try to eliminate first. Which tool should they use?
a. 5S
b. Pareto diagram
c. ABC Analysis
d. R-chart
e. PDCA
4. Another term for a postponement strategy is
a.
Speculation
b.
delayed differentiation
c.
mass customization
d.
decreased differentiation
e.
None of the above
5. Which of the following offers a potential for reducing inventory costs in a supply chain?
a. sharing POS data across the supply chain
b. sharing components across different products
c. having more warehouses
d. using slow transportation modes
e. a and b
f. a and c
g. b and c
h. c and d
6. Which of the following phrases describes the chart below about the reasons for unsatisfying hotel stays?
a. H is the most important problem
b. 80% of the reasons cause 20% of the dissatisfaction.
c. A is the most important problem
d. 20% of the reasons cause 60% of the dissatisfaction
e. None of the above.
7. If the EOQ is calculated to be 100 units and the annual demand is 5,000 units, what is the time between
orders if the company works 300 days per year?
a. 0.17 days
b. 6 days
c. 10 days
d. 50 days
e. None of the above
8.
9.
The purpose of safety stock is to
a. protect the firm from a sudden decrease in demand
b. replace failed units with good ones
c. eliminate the possibility of a stockout
d. control the likelihood of a stockout due to the variability of demand during lead time
e. eliminate the likelihood of a stockout due to erroneous inventory tally
Suppose you had to produce 700 units in 160 hours to meet the demand requirements of a product.
What is the cycle time to meet this demand requirement?
a. 0.22 min/unit
b. 4.4 units/hour
c. 10.3 min/unit
d. 13.7 units/hour
e. None of the above
10. The average demand rate is 100 per day. The time in the system is 3 days. This means that the average
number in the system is
a. 33
b. 60
c. 120
d. 300
e. None of the above
11. It takes an average of 30 minutes to change the oil at Vanessa’s Quick Lube. Average demand is 3.2
customers per hour. What is system the utilization if there are 2 servers (e.g., 2 service bays that are
used for changing oil)?
a. 5.3%
b. 10.7%
c. 62.5%
d. 80.0%
e. more than 100%
True or False
1. ________ Variation in production systems that is caused by factors that can be clearly identified and
possibly even managed is called assignable variation.
2. ________ EOQ balances purchase cost and ordering cost.
3. _________ Your supplier’s supplier is a third tier supplier.
4. ________ Under the assumptions of the Basic EOQ model, if one increases the order quantity, then the
length of the order cycle decreases (with demand and cost parameters remaining the same).
5. ________ A high-end, customized furniture manufacturer, would most likely employ an assembly-line
type of process.
6. ________ Productivity is the total value of outputs produced divided by the total value of all inputs to the
transformation process.
7. _________ The idea behind Pareto charts is that working with the majority of possible causes is needed
to significantly improve quality.
8. ________Under the assumptions of EOQ model, if the total optimal cost (fixed ordering cost + holding
cost) is $10,000, then the holding cost part is $5,000.
Fill in Blank
1. Warranty costs are an example of __________________ costs of quality.
2.
In the analogy of “rocks in the river/pond” to inventory management and lean manufacturing, the river
represents ____________________ (operations problems / inventory / orders).
3. In a push system, work in process inventory piles up at the ____________________________.
4. The main focus of a responsive supply chain is to minimize ____________________(cost / lead time),
whereas the main focus of an efficient supply chain is to minimize ____________________ (cost / lead
time). Canned tuna is best served by a(n) _______________ (efficient / responsive) supply chain; the
Tesla Roadster (fancy and expensive sport car, 100% electric) is best served by a(n) _____________
(efficient / responsive) supply chain.
5. The best case was ________________________________________because: