Page One – Multiple Choice
- Question (TCO 1) Which of the following functions involves budgeting, analysis of investment proposals, and provision of funds?
- Question (TCO 1) Transformation includes all of the following, except
- Question (TCO 1) Which of the following is providing new opportunities for productivity improvements?
- Question (TCOs 3 & 6) In an effort to reduce inventory, which of the following interactions with vendors would potentially be helpful?
- Question (TCOs 3 & 6) Which of the following costs related to order size is nonlinear?
- Question (TCO 2) Which of the following is a computer-based information system designed to handle ordering and scheduling of dependent-demand inventories?
- Question (TCO 2) Net material requirements can be described as
- Question (TCO 2) When an MRP system is periodically updated to account for all changes that have occurred within a given time interval, the process is called
- Question (TCOs 4, 5, & 6) How does a net-change system work?
- Question (TCOs 4, 5, & 6) The MRP approach that is used for components or subassemblies to compensate for variations in lead times is called
- Question (TCOs 4, 5, & 6) A lead time service level of 90 percent implies which of the following?
- Question (TCOs 5, 7, & 9) The dynamic store of information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size), which is an input to the MRP, is the
- Question (TCOs 5, 7, & 9) What will be the quantity of the first planned receipt if net requirements for component J are as follows: 60 units in Week 2, 40 units in Week 3, and 60 units in Week 5? A fixed-period, two-period lot-sizing method is used.
- Question (TCO 11, 12, 13, & 14) Given a product mix, scheduling difficulties, quality factors, and so on, the maximum expected output is
- Question (TCOs 11, 12, 13, & 14) Given the following information, calculate the efficiency. Effective capacity = 50 units per day Design capacity = 100 units per day Actual output = 30 units per day
- Question (TCOs 10, 15, & 16) In an assignment method problem, it takes Abe 3 hours to build a birdhouse and 4 hours for a doghouse, while Betty takes 4 hours for a birdhouse and 3 hours for a doghouse. What is the reduced cost (in hours) of assigning Abe to build the doghouse?
- Question (TCOs 10, 15, & 16) The matrix below shows relative costs for various job-machine combinations. Which set of pairs constitutes the minimum cost solution using the assignment method?
Page Two – Explanatory
- (TCO 1) A company has found that introducing one additional worker enables a process improvement that reduces processing time for each unit so that output is increased by 25% with less material. Under the old process, five workers could produce 60 units per hour. Labor costs are $12/hour, and material input was previously $16/unit. For the new process, material is now $10/unit. Overhead is charged at 1.6 times direct labor cost. Finished units sell for $31 each. What increase in productivity is associated with the process improvement?
- (TCOs 3 & 6) If instantaneous replenishment is assumed when given the same demand, setup/ordering costs, and carrying costs, then the EOQ calculated using incremental replenishment will be _____. Illustrate using a numeric example.
- (TCO 2) For the product tree below, how many Cs are needed if 17 Ps are needed and on-hand inventory consists of 10 As, 15 Bs, 20 Cs, 12 Ms, and 5 Ns? Show your work.
- (TCOs 4, 5, & 6) Given the tree below, develop a material requirements plan for end-item P and its components. Assume that all lead times are one week and that lot-for-lot ordering is used, except for Item F, which is ordered in multiples of 400 units.
- (TCOs 5, 7, & 9) Explain the advantages and disadvantages of frequent deliveries of small shipments.
- (TCOs 11, 12, 13, & 14) A small business owner is contemplating the addition of another product line. Capacity increases, and equipment will result in an increase in annual fixed costs of $50,000. Variable costs will be $25 per unit. What unit selling price must the owner obtain to break even on a volume of 2,500 units a year?
- (TCOs 10, 15,& 16) Compare and contrast kanban and CONWIP. 8. (TCOs 8 & 9) MPS planners use what is referred to as time fences? What are they, and why are they used?