# Assignment

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MBA 626- Fall 2012 exam

1-

What is the earliest completion time for a project with this information about activities?

Activity

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Optimistic Time

Most Likely Time

Pessimistic Time

A

3

4

5

B

5

7

9

C

2

3

10

A

D

2

5

8

B

E

1

7

7

B

F

3

7

9

C, D

G

7

8

9

D, E

H

4

6

10

F

A) Less than or equal to 22 days

B) 23 days

C) 24 days

D) 25 days or more

2- The following four jobs must each be processed on two machines starting with Machine A and then going to Machine B. The following processing times are available (in hours):

Job

Processing Time
Machine A

Processing Time
Machine B

A

1

5

B

8

3

C

3

9

D

7

8

What is the minimum makespan for this group of jobs?

A) Less than or equal to 23 hours

B) More than 23 hours but less than or equal to 25 hours

C) More than 25 hours but less than or equal to 27 hours

D) More than 27 hours

Work center Q45 has four jobs that just arrived (the start of Day 1) to be processed, as shown in the following table. Assume the shop works eight hours per day. Using the information in the following table and the critical ratio rule, what is the flow time of job A?

Job

Processing Time at Workstation (hours)

Time Remaining to Due Date (days)

Work Time Remaining Including Workstation (days)

Remaining Number of Operations

A

12

8

3

3

B

9

14

8

2

C

8

11

10

5

D

16

6

6

2

A) fewer than or equal to 10 hours

B) greater than 10 hours but fewer than or equal to 20 hours

C) greater than 20 hours but fewer than or equal to 30 hours

D) greater than 30 hours

4- The demand forecast for the next four periods is 80, 110, 120, and 145 units respectively. The plant has a regular capacity of 100 units per period, an overtime capacity of 10 units per period, and a subcontractor capacity of 5 units per period. Costs per unit are:

Regular production: \$5

Overtime production: \$8

Subcontracting: \$9

Holding cost per unit per period: \$3

No shortages are allowed and the company has 5 units in inventory at the start of the planning period. How many units should be produced using overtime?

A) Less than 30

B) 30 to 35

C) More than 35 but less than 40

D) 40

5- The following MPS is available:

Lot size: 80

Weeks

Quantity on hand

45

1

2

3

4

5

6

7

8

Forecast

35

35

35

35

30

30

30

30

Customer orders (booked)

40

35

45

50

10

5

Projected on-hand inventory

MPS quantity

MPS start

Available-to-promise inv.

Available-to-promise units in week 4 are:

A) Less than or equal to 50

B) More than 50 but less than or equal to 60

C) More than 60 but less than or equal to 70

D) More than 70

6- Using the following BOM and on-hand inventory record, how many
additional units of “J” are required to make 10 end items?

On-Hand Inventory Record:

A

15

G

15

B

11

H

45

C

2

I

122

D

8

J

56

E

19

K

282

F

34

A) Less than or equal to 500

B) More than 500 but less than or equal to 600

C) More than 600 but less than or equal to 700

D) More than 700

7- Tiger Toys is a retailer in Omaha, Nebraska. Business is seasonal for Tiger Toys. The following table shows labor requirements over a typical six-month period (expressed as number of employees). Undertime is paid and we also know the following rates:

Wages per month per worker:

\$800

Hiring cost per worker

\$300

Layoff cost per worker

\$200

Overtime rate

150% of the regular rate

Overtime is allowed up to 20% of the regular time

Month

1

2

3

4

5

6

Total

Forecasted demand

6

7

12

13

8

5

Workforce level

Undertime

Overtime

Productive time

Hires

Layoffs

Costs

Productive time

Undertime

Overtime

Hires

Layoffs

The total cost of a level strategy which pays overtime and also minimizes the costs is:

A) Less than or equal to \$57,000

B) More than \$57,000 but less than or equal to \$58,000

C) More than \$58,000 but less than or equal to \$59,000

D) More than \$59,000

8- The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry. Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation. The supplier will be selected based on total annual cost to supply Burdell’s needs. Burdell’s annual requirements are for 25,000 tires, and the company operates 250 days a year. The following data are available for two suppliers being considered.

SUPPLIER

SHIPPING QUANTITY PER SHIPMENT

ANNUAL
SHIPPING COSTS

PRICE / TIRE (p)

INVENTORY HOLDING COSTS (H)

LEXINGTON TIRE

1,500

\$18,000

\$30

\$6.00

6

\$15,000

IRMO
AUTO

1,200

\$25,000

\$29

\$6.80

5

\$18,000

What are the annual inventory costs if the lower inventory cost supplier is selected?

A) Less than or equal to \$7,000

B) More than \$7,000 but less than or equal to \$7,500

C) More than \$7,500 but less than or equal to \$8,000

D) More than \$8,000

9- A store has collected the following information on one of its products:

Demand = 15,000 units/year

Standard deviation of weekly demand = 30 units

Ordering costs = \$30/order

Holding costs = \$4/unit/year

Cycle-service level = 95% (z for 95% = 1.65)

Lead-time = 2 weeks

Number of weeks per year = 50 weeks

If the firm uses the continuous review system to control the inventory, what would be the reorder point?

A) Less than or equal to 629

B) More than 629 but less than or equal to 669

C) More than 669 but less than or equal to 709

D) More than 709

10- As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 3000 units. Ordering cost is \$80 each time an order is placed, and the holding cost is 30 percent of the per-unit price. Your supplier provided the following price schedule.

Price per Unit

Order Quantity

\$6.00

000—299

\$5.00

300—699

\$4.00

700 and more

What ordering-quantity policy do you recommend?

A) fewer than or equal to 200 units

B) greater than 200 units but fewer than or equal to 600

C) greater than 600 units but fewer than or equal to 700 units

D) more than 700 units

End Item

A(2)B(3)C(4)

D(2)E(3)F(5)G(10)H(8)I(12)

K(2)K(5)J(3)

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