FINAL EXAM
MG401 OPERATIONS MANAGEMENT (4/22/08)
(ATTACH AND ANNOTATE ALL PRINTOUTS!)
(ATTACH AND ANNOTATE ALL PRINTOUTS!)
1. For the CPM problem shown, find TE = ____weeks and the critical path __________.
Use the QMS output to construct a Gantt Chart of the project. Show slacks for non-critical activities.
2. In a simple EOQ model with daily usage/demand of 250 units, Ordering Cost of $800, Holding Cost of $7/unit/year, 360 working days per year, Purchase price of $120/unit, and an order lead time of 6 working days, What is the optimal order size? _____units length of the inventory cycle (days between orders)? _________ days. What is the reorder level (QR)? _____ units, Total Annual Cost? $____________
If a discount of $1 is offered for orders of 5,000 units, What would be the annual saving/loss (circle one) $____________
3. In a Learning Curve model Unit #5 takes 11 hours to produce and Unit #10 takes 7 hours. Compute the Learning Rate ______%
[BE SURE TO CLEAR THE RATE BEFORE SOLVING THE NEXT PROBLEM!]
In another problem, the 1st unit takes 22 hours to build and the Learning Rate is 90%, how long will the 15th unit take? ______ hours
4. In the Production Planning problem below, the monthly production must range between 3 and 6 units, initial inventory is 2 units, ending inventory is 3 units, and monthly demands are forecast at 5, 6, & 4 units. Production costs are $30 (fixed) and $5 (variable/unit). Monthly carrying cost is $1. Inventory capacity is 10/month.
Use QMS to determine the optimal production schedule.
June production = _____units, July = _____, August = ______ Total Cost = $________
5. The Just In Time (JIT) system is a Push/Pull (CIRCLE ONE) system. List 3 reasons why it works better in Japan than it does in the USA.
1. _________________________________________________________________
2. _________________________________________________________________
3. _________________________________________________________________
6. Alcran, Inc. sells football jerseys for $35 each. They can buy them from a supplier for $18 per unit. They are considering the purchase of a machine that will manufacture the jerseys at a cost of $12 per unit. The machine costs $20,000. How many units must they sell to make the purchase of the machine a viable option? __________ units. What is their PROFIT at this sales volume? $__________
Another manufacturer has a machine that costs $30,000, but reduces the per unit cost to $10. How many units must they sell to make the more expensive machine the best choice? __________ units. What is their PROFIT at this sales volume? $__________
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