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Section:___________________
Exam II
(Yellow)
BA 301
Fall 2001
S.K. Norman
Exam II
Fall 2001
2.
Jars of pickles are sampled and weighed. Sample measures are plotted on control charts.
The ideal weight is 11 oz. Which type of chart(s) would you recommend?
a. x - and R-charts
b. p- harts
c. c-charts
d. x -, but not R-charts
e. both p- and c-charts
3.
4.
The shopper who says to himself Ive waited too long in this line. I dont really need to
buy this product today and leaves the store is an illustration of which element of queue
discipline?
a. balking
b. reneging
c. random departure
d. random arrival
e. none of the above
5.
6.
Exam II
7.
Fall 2001
Plots of sample ranges on an R-Chart indicate that the most recent value is below
the lower control limit. What course of action would you recommend?
a.
b.
c.
d.
An airline ticket counter, with one line of customers waiting for one of several agents is an
example of a
a. single channel, single phase system
b. single channel, multi-phase system
c. multi-channel, single phase system
d. multi-channel, multi-phase system
e. none of the above
9.
10. An inventory decision rule states, "when the inventory level goes down to 14 gearboxes,
100 gearboxes will be ordered." Which of the following statements is true?
a. 100 is the reorder point, and 14 is the order quantity.
b. The number 100 is a function of demand during lead time.
c. 14 is the safety stock, and 100 is the reorder point.
d. 14 is the reorder point, and 100 is the order quantity.
e. None of the above.
11.
Exam II
Fall 2001
12.
The process of identifying other organizations that are best at some facet of your operations
and then modeling your organization after them is known as
a. continuous improvement
b. employee empowerment
c. benchmarking
d. copycatting
e. industrial espionage
13.
14. We compared an efficient supply chain with a responsive supply chain. Which of the
following statements is not true:
a. A goal of an efficient supply chain is to minimize inventories.
b. A goal of a responsive supply chain is to react quickly to market demand.
c. Efficient supply chains may seek their competitive advantage through low cost.
d. Responsive supply chains seek their competitive advantage through high development
speed.
e. All of the above are true.
15.
In the article from Business Week entitled Boeing Goes Lean, the suppliers
perform all of the following except:
a. Suppliers spend time on the assembly line with mechanics to figure out more
efficient ways to install their parts
b. Suppliers can check Boeings master schedule
c. Suppliers can check inventory levels and dispatch orders automatically
d. Suppliers deliver parts directly to Boeings storage area
e. All of the above are true.
16.
All of the following are "opportunities" for supply chain management except
a. postponement
b. channel assembly
c. drop shipment
d. blanket orders
e. job enrichment
17. The Wallace, Co. changed its relationships with its customers when it began to implement
the Baldrige criteria. Which of the following was not one of the changes described?
a. They performed channel assembly for their customers
b. They began to ask the customer, What do you want?
c. They inventoried parts some of their customers.
d. They created partnering relationships with some of their customers
e. All of the above are true.
Exam II
Fall 2001
18.
19.
20.
(4 pts) A queuing model which follows the M/M/1 assumptions has = 2 and = 3. The
average number in the system is
a. 2/3
b. 1.3
c. 2
d. 1
e. 6
22.
(4 pts) A dental clinic at which only one dentist works is open only two days a week.
During those two days, the traffic is uniformly busy with patients arriving at the rate 2 of
per hour. The doctor serves patients at the rate of one every 15 minutes. What is the
average time a patient spends in the office (wait plus service)?
a. 0.01 hours
b. 0.07 hours
c. 0.13 hours
d. 0.25 hours
e. 0.50 hours
Exam II
Fall 2001
23.
(4 pts) At the order fulfillment center of a major mail-order firm customer orders arrive at
the sorting machines. The orders are already packaged and need to be sorted by address so
that they can be loaded onto the appropriate truck. The arrival rate at the sorting machines
is at the rate of 120 per hour following a Poisson distribution. The machine sorts at the
constant rate of 160 per hour. What is the utilization rate of the system?
a. 0.03
b. 0.50
c. 0.75
d. 1.33
e. 3.00
24.
(6 pts) Whole Grains LLC uses statistical process control to ensure that their healthconscious, low-fat, multi-grain sandwich loaves have the proper weight of 6 oz. Based on a
previously stable and in-control process, the control limits of the x and R charts are: UCL
x = 6.56, LCL x = 5.84, UCLR= 1.141, LCLR= 0. Over the past few days, they have
taken five random samples of four loaves and have found the following.
Sample
s.
t.
u.
v.
w.
x.
y.
Net Weight
Loaf #1
Loaf #2
Loaf #3
Loaf #4
1
6.3
6.0
5.9
5.9
2
6.3
4.8
5.6
5.2
3
6.2
6.0
6.2
5.9
The process is in control.
Sample 1 is out of the control limits on the Xbar-chart.
Sample 2 is out of the control limits on the Xbar-chart.
Sample 3 is out of the control limits on the Xbar-chart
Sample 1 is out of the control limits on the R-chart
Sample 2 is out of the control limits on the R-chart
Sample 3 is out of the control limits on the R-chart.
Exam II
Fall 2001
25.
(6 pts) A hospital-billing auditor has been inspecting patient bills. While almost all bills
contain some errors, the auditor is looking now for large errors (errors in excess of $250).
Among the last 100 bills inspected, the defect rate has been 18%. Calculate the upper and
lower 3 sigma limits.
a. 0.18 0.1153
b. 0.18 0.0084
c. 0.18 0.0715
d. 0.18 1.2728
e. none of the above
26.
(4 pts) In the basic EOQ model, if D=6000 per year, S=$100, H=$10 per unit per month,
the Economic Order Quantity is approximately
a. 6000
b. 60
c. 346
d. 100
e. 35
27.
(4 pts) A product has demand of 1000 units per year. Ordering cost is $20 and holding cost
is $4 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for
this product will cost $_____ per year in total annual inventory costs.
a. $4000
b. $400
c. $200
d. zero; this is a class C item
e. cannot be determined because unit price is not known
Exam II
28.
Fall 2001
(4 pts) Montegut Manufacturing produces a product for which the annual demand is
10,000. Production averages 100 per day, while demand is 40 per day. Holding costs are
$1.00 per unit per year; set-up costs $200.00. Montegut Manufacturing works 250 days per
year. What is the optimal production quantity?
a. 26
b. 258
c. 2582
d. 3,098,387
e. none of the above
29.
4 pts) Daily usage of an assembly is 100 in a facility that operates 300 days of the year.
Setup cost is $5 and annualized carrying cost is $160 per assembly per year. Production of
this assembly occurs at the rate of 400 per day when production of the assembly is
underway. Lead time is 3 days; safety stock is 1/2 days usage. The optimum kanban size is
50 assemblies. What is the optimum number of kanbans?
a. 1
b. 2
c. 5
d. 7
e. None of the above