“Final Exam
Operations
Management
QSO 600 Operations Management
The final exam consists of five essay and five problem questions. Answer all the questions.
Essay Questions:
There is no set length for answers; students may be as verbose or brief as they feel
necessary to cover the question. Use this same exam document for your answers,
placing them below each question. This portion of the exam is worth 100 points
Problem Questions:
Make sure to
show all your work to get full credit. The instructor needs to know the
formulas and calculations you used to get to your final answer. You can do part of the exam in Excel and
Paste your Excel work into this document. This portion of the exam is worth 50
points.
File Convention:
File name
for the exam attachment to be
studentlastname-finalexam
(Be sure there are no spaces)
Be sure to
put your name on the exam paper.
Note: You may use the text and any other
materials. You are NOT to work with anyone else including other students in
completing the exam nor discuss it with them.
QSO 600
Final Exam Essay Questions
Question 1:What is operations management? Why is it
important? Is a good knowledge of operations management more important in
service or manufacturing industries? Explain your answer.
Question 2:Discuss the use of PERT/CPM techniques for
managing projects. Describe what PERT/CPM does. Discuss advantages and
disadvantages of using it. What other techniques might you choose to manage
your project?
Question 3:What are economies of scale in a
manufacturing plant? Do they continue forever? What are diseconomies of scale?
How might you decide the optimal size of a plant?
Question 4:What, in your opinion, are the three most
important issues in supply chain management? Discuss why you think these are
the key issues.
Question 5:Discuss why (or if) inventories are
necessary. What are the benefits of inventories? What are the disadvantages of
holding inventories?
QSO 600 Final Exam Problem Questions
Problem 1.
Arsenal
Electronics is going to construct a new $1.2 billion semiconductor plant and
has selected four towns in the Midwest as potential sites. The important
location factors and ratings for each town are as follows:
Scores
(0 to 100)
Location Factor
Weight
Abbeton
Bayside
Cane
Creek
Dunnville
Work ethics
0.18
80
90
70
75
Quality of life
0.16
75
85
95
90
Labor laws/unionization
0.12
90
60
60
70
Infrastructure
0.10
60
50
60
70
Education
0.08
80
90
85
95
Labor skill and education
0.07
75
65
70
80
Cost of living
0.06
70
80
85
75
Taxes
0.05
65
70
55
60
Incentive package
0.05
90
95
70
80
Government regulations
0.03
40
50
65
55
Environmental regulations
0.03
65
60
70
80
Transportation
0.03
90
80
95
80
Space for expansion
0.02
90
95
90
90
Urban proximity
0.02
60
90
70
80
Recommend a site based on these location
factors and ratings.
Answer 1:
Problem 2.
Sawyer
Furniture is one of the few remaining domestic manufacturers of wood furniture.
In the current competitive environment, cost containment is the key to its
continued survival. Demand for furniture follows a seasonal demand pattern with
increased sales in the summer and fall months, culminating with peak demand in
November.
The cost of
production is $16 per unit for regular production, $24 for overtime, and $33
for subcontracting. Hiring and firing costs are $500 per worker. Inventory
holding costs are $20 per unit per month. There is no beginning inventory. Ten
workers are currently employed. Each worker can produce 50 pieces of furniture
per month. Overtime cannot exceed regular production. Given the following
demand data, use Excel Solver to design an aggregate production plan for Sawyer
Furniture that will meet demand at the lowest possible cost.
Input:
Beg. Wkrs
10
Regular
$16
Hiring
$500
Units/wkr
50
Overtime
$24
Firing
$500
Beg. Inv.
0
Subk
$33
Inventory
$20
Month
Demand
Reg
OT
Subk
Inv
#Wkrs
#Hired
#Fired
Jan
500
500
0
0
0
10
0
0
Feb
500
500
0
0
0
10
0
0
Mar
1000
1,000
0
0
0
20
10
0
Apr
1200
1,000
200
0
0
20
0
0
May
2000
1,000
1,000
0
0
20
0
0
Jun
400
400
0
0
0
8
0
12
Jul
400
400
0
0
0
8
0
0
Aug
1000
1,000
0
0
0
20
12
0
Sep
1000
1,000
0
0
0
20
0
0
Oct
1500
1,500
0
0
0
30
10
0
Nov
7000
3,500
3,500
0
0
70
40
0
Dec
500
500
0
0
0
10
0
60
Total
17,000
12,300
4,700
0
0
246
72
72
Answer 2:
Problem 3.
Complete the
following MRP matrix for Item X. Determine when orders should be released and
the size of those orders.
Item: X
LLC: 0
Period
Lot Size: Min 50
LT: 2
1
2
3
4
5
6
7
8
Gross Requirements
25
30
56
25
100
40
30
20
Scheduled Receipts
50
Projected on Hand
30
Net Requirements
Planned Order Receipts
Planned Order Releases
Release
orders in periods 1 through 5 for quantities of 50, 50, 56, 50, and 50
respectively.
Answer 3:
Problem 4.
Fibrous Incorporated makes products from
rough tree fibers. Its product line consists of five items processed through
one of five machines. The machines are not identical, and some products are
better suited to some machines. Given the following production time in
minutes per unit, determine an optimal assignment of product to machine:
Machine
Product
A
B
C
D
E
1
17
10
15
16
20
2
12
9
16
9
14
3
11
16
14
15
12
4
14
10
10
18
17
5
13
12
9
15
11
Answer 4:
Problem 5.
The
following probabilistic activity time estimates are for a CPM/PERT network.
Time
Estimates (days)
Time
Estimates (days)
Activity
a
m
b
Activity
a
m
b
1
1
2
6
7
1
1.5
2
2
1
3
5
8
1
3
5
3
3
5
10
9
1
1
5
4
3
6
14
10
2
4
9
5
2
4
9
11
1
2
3
6
2
3
7
12
1
1
1
Determine
the following:
a.
Expected
activity times
b.
Earliest
start and finish times
c.
Latest start
and finish times
d.
Activity
Slack
e.
Critical
Path
Expected Project duration and standard
deviation.
Answer 5:
Final ExamOperations
ManagementQSO 600 Operations ManagementThe final
exam consists of five essay and five problem questions. Answer all the questions.
Essay Questions: There is no
set length for answers; students may be as verbose or brief as they feel
necessary to cover the question. Use this same exam document for your answers,
placing them below each question. This portion of the exam is worth 100 pointsProblem Questions:Make sure to
show all your work to get full credit. The instructor needs to know the
formulas and calculations you used to get to your final answer. You can do part of the exam in Excel and
Paste your Excel work into this document. This portion of the exam is worth 50
points.File Convention:File name
for the exam attachment to be studentlastname-finalexam
(Be sure there are no spaces)Be sure to
put your name on the exam paper. Note: You may use the text and any other
materials. You are NOT to work with anyone else including other students in
completing the exam nor discuss it with them. QSO 600
Final Exam Essay QuestionsQuestion 1:What is operations management? Why is it
important? Is a good knowledge of operations management more important in
service or manufacturing industries? Explain your answer.
Question 2:Discuss the use of PERT/CPM techniques for
managing projects. Describe what PERT/CPM does. Discuss advantages and
disadvantages of using it. What other techniques might you choose to manage
your project?
Question 3:What are economies of scale in a
manufacturing plant? Do they continue forever? What are diseconomies of scale?
How might you decide the optimal size of a plant?
Question 4:What, in your opinion, are the three most
important issues in supply chain management? Discuss why you think these are
the key issues.
Question 5:Discuss why (or if) inventories are
necessary. What are the benefits of inventories? What are the disadvantages of
holding inventories? QSO 600 Final Exam Problem QuestionsProblem 1. Arsenal
Electronics is going to construct a new $1.2 billion semiconductor plant and
has selected four towns in the Midwest as potential sites. The important
location factors and ratings for each town are as follows:Scores
(0 to 100)Location FactorWeightAbbetonBaysideCane
CreekDunnvilleWork ethics0.1880907075Quality of life0.1675859590Labor laws/unionization0.1290606070Infrastructure0.1060506070Education0.0880908595Labor skill and education0.0775657080Cost of living0.0670808575Taxes0.0565705560Incentive package0.0590957080Government regulations0.0340506555Environmental regulations0.0365607080Transportation0.0390809580Space for expansion0.0290959090Urban proximity0.0260907080Recommend a site based on these location
factors and ratings.Answer 1: Problem 2.Sawyer
Furniture is one of the few remaining domestic manufacturers of wood furniture.
In the current competitive environment, cost containment is the key to its
continued survival. Demand for furniture follows a seasonal demand pattern with
increased sales in the summer and fall months, culminating with peak demand in
November.The cost of
production is $16 per unit for regular production, $24 for overtime, and $33
for subcontracting. Hiring and firing costs are $500 per worker. Inventory
holding costs are $20 per unit per month. There is no beginning inventory. Ten
workers are currently employed. Each worker can produce 50 pieces of furniture
per month. Overtime cannot exceed regular production. Given the following
demand data, use Excel Solver to design an aggregate production plan for Sawyer
Furniture that will meet demand at the lowest possible cost.Input:Beg. Wkrs10Regular$16Hiring$500Units/wkr50Overtime$24Firing$500Beg. Inv.0Subk$33Inventory$20MonthDemandRegOTSubkInv#Wkrs#Hired#FiredJan5005000001000Feb5005000001000Mar10001,00000020100Apr12001,000200002000May20001,0001,000002000Jun4004000008012Jul400400000800Aug10001,00000020120Sep10001,0000002000Oct15001,50000030100Nov70003,5003,5000070400Dec50050000010060Total17,00012,3004,700002467272Answer 2: Problem 3.Complete the
following MRP matrix for Item X. Determine when orders should be released and
the size of those orders.Item: XLLC: 0PeriodLot Size: Min 50LT: 212345678Gross Requirements 25305625100403020Scheduled Receipts 50 Projected on Hand30 Net Requirements Planned Order Receipts Planned Order Releases Release
orders in periods 1 through 5 for quantities of 50, 50, 56, 50, and 50
respectively.Answer 3: Problem 4. Fibrous Incorporated makes products from
rough tree fibers. Its product line consists of five items processed through
one of five machines. The machines are not identical, and some products are
better suited to some machines. Given the following production time in
minutes per unit, determine an optimal assignment of product to machine: MachineProductABCDE1171015162021291691431116141512414101018175131291511Answer 4: Problem 5.The
following probabilistic activity time estimates are for a CPM/PERT network.Time
Estimates (days) Time
Estimates (days)ActivityambActivityamb1126711.52213581353351091154361410249524911123623712111Determine
the following:a.
Expected
activity timesb.
Earliest
start and finish timesc.
Latest start
and finish timesd.
Activity
Slacke.
Critical
PathExpected Project duration and standard
deviation.Answer 5: “
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