ops mgt quiz finalsol

7/26/2019 Ops Mgt Quiz FinalSol

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(NoteBoth sides of the paper have exam problems.)

MCU International College 99511 Operations Management 2004 Fall Final Exam Y.-H. Chen, Ph.D.

Academic and Professional Conductexam policy:Using unauthorized notes, copying another studentswork, or providing another student with answers duringan examination is a violation of the exam policy.

Exam Instruction: Close books and notes. Exam time is60 minutes. Please write your answers clearly indesignated areas. You are allowed to use calculatorsand three pages of blank paper. PDA, laptops, and othertypes of computers are not allowed.

There is a total of 25 multiple-choice problems. Please write out the correct choice below each problem number.Each problem is worth for 4 points with a total of 100 points. Mathematical formula and table are provided at theend of the paper for your reference.

1. In a two-bin inventory system, the amount contained in the second bin is equal to the:A) ROPB) EOQC) amount in the first binD) optimum stocking levelE) safety stock

Answer: A Page: 487 Difficulty: Medium

2. Laser scanning of universal product codes at retail checkout counters can provide which of the following

advantages?

I. increased speed and accuracy at checkoutII. continuous information on inventoriesIII. improved levels of customer serviceIV. elimination of periodic inventories

A) I, II, and IVB) II, III, and IVC) I, II, and IIID) I, III, and IVE) I, II, III, and IV

Answer: C Page: 488 Difficulty: Medium

3. In the A-B-C classification system, items which account for sixty percent of the total dollar-volume for fewinventory items would be classified as:A) A itemsB) B itemsC) C itemsD) A items plus B itemsE) B items plus C items

Answer: A Page: 491 Difficulty: Easy

4. The EOQ model is most relevant for which one of the following?

A) ordering items with dependent demandB) determination of safety stockC) ordering perishable itemsD) determining fixed interval order quantitiesE) determining fixed order quantities

Answer: E Page: 492 Difficulty: Medium

5. In a supermarket, the every Monday morning restocking of shelves by a bread vendor is an example of:A) safety stock replenishmentB) economic order quantitiesC) reorder pointsD) fixed order intervalE) blanket ordering

Answer: D Page: 512 Difficulty: Medium

6. A cycle count program will usually require that 'A' items be counted:A) daily.B) once a weekC) monthly

D) quarterlyE) more frequently than annually

Answer: E Page: 492 Difficulty: Hard


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7. In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will:A) doubleB) increase, but not doubleC) decrease by a factor of twoD) remain the sameE) none of the above


8. In the basic EOQ model, if annual demand is 50, carrying cost is $2, and ordering cost is $15, EOQ isapproximately:

A) 11B) 20C) 24D) 28E) 375


9. The introduction of quantity discounts will cause the optimum order quantity to be:A) smallerB) unchangedC) greaterD) smaller or unchanged

E) unchanged or greater

Answer: E Page: 500 Difficulty: Hard

10. If average demand for an inventory item is 200 units per day, lead time is three days, and safety stock is 100units, the reorder point is:

A) 100 unitsB) 200 unitsC) 300 unitsD) 600 unitsE) 700 units


11. Which one of the following is implied by a "lead time" service level of 95 percent?A) Approximately 95 percent of demand during lead time will be satisfied.

B) Approximately 95 percent of inventory will be used during lead time.C) The probability is 95 percent that demand during lead time will exactly equal the amount on handat the beginning of lead time.D) The probability is 95 percent that demand during lead time will not exceed the amount on hand atthe beginning of lead time.E) none of the above

Answer: D Page: 505 Difficulty: Hard

12. Daily usage is exactly 60 gallons per day. Lead time is normally distributed with a mean of 10 days and astandard deviation of 2 days. What is the standard deviation of demand during lead time?

A) 60 x 2B) 60 times the square root of 2C) 60 times the square root of 10D) 60 x 10E) none of the above

Answer: A Page: 508 Difficulty: Hard

13. Which of these products would be most apt to involve the use of a single period model?A) gold coinsB) hammersC) fresh fishD) calculatorsE) frozen corn

Answer: C Page: 514 Difficulty: Easy

14. In a single period model, if shortage cost is four times excess cost, then the optimum service level is:A) 100 percentB) 80 percentC) 60 percent

D) 40 percentE) 20 percent


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Answer: B Page: 515 Difficulty: Medium

15. If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four days, theROP will be:

A) 20B) 50C) 70D) 80E) 130


16. Which item would be least likely to be ordered under a fixed order interval system?A) textbooks at a college bookstoreB) auto parts at an assembly plantC) cards at a gift shopD) canned peas at a supermarketE) none of these


17. Once a project is underway, the project manager is responsible for effectively managing:A) the peopleB) costsC) (a) and (b)

D) timeE) all of the above

Answer: E Page: 731-732 Difficulty: Medium

18. The advantage(s) a Gantt chart has over other project scheduling techniques is(are):A) its ability to reveal relationships among activitiesB) It can easily show networks.C) (a) and (b)D) its simplicityE) all of the above


19.

Given the portion of the network shown above, what is the latest start time of activity 6-7 if the latest finishof activity 7-8 is 26, and the latest finish of activity 7-9 is 23?

A) 18B) 17C) 13D) 12E) 10

Answer: D Page: 743-744 Difficulty: Medium

20. Activity C has an early start time of 8, an early finish time of 12, a latest start time of 13, and a latest finishtime of 17. Its slack is:

A) 0B) 1C) 4D) 5E) 9


21. A PERT/CPM activity has an optimistic time estimate of three days, a most likely time estimate of eightdays, and a pessimistic time estimate of 10 days. The expected time (in days) of this activity is:

A) 7.0B) 7.5C) 8.0


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D) 8.5E) 10.0


22. There are four activities on the critical path. Coincidentally, their standard deviations are all equal to 4. Thestandard deviation of the critical path is therefore equal to:

A) 2B) 4

C) 8D) 16E) 64

Answer: C Page: 748-749 Difficulty: Medium

23. In crashing a project, a manager will generally focus on activities which:A) are not on the critical pathB) are the least costly to crashC) are costly to crash and are on the critical pathD) are on the critical path and are the least costly to crashE) are the easiest to crash


24. Which of the following are advantages of PERT?

I. It is visual.

II. It is automatically updated.III. Activities that need to be watched closely can be identified.

A) I and IIB) II and IIIC) III onlyD) I and IIIE) I, II, and III


25. Which of the following are limitations of PERT?

I. Time estimates may include a fudge factor.II. Important activities may be overlooked.III. It is an after-the-fact analysis.

A) I and IIB) I, II, and IIIC) I and IIID) II and III

E) I only

Answer: A Page: 756-757 Difficulty: Medium

ops mgt quiz finalsol

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