Devry GSCm206 final exam 2015 december

GSCM206 final exam

Multiple Choice Questions

Question 1. 1. (TCO 7) A product’s life cycle is divided into four stages, which are _____. (Points : 10)

introduction, growth, saturation, and maturity

introduction, growth, stability, and decline

introduction, maturity, saturation, and decline

implementation, growth, maturity, and decline

None of the above

Question 2. 2. (TCO 8) Which of the following transformations generally has the lowest facility utilization? (Points : 10)

Process-focused process

Repetitive process

Product-focused process

Continuous process

Question 3. 3. (TCO 1) The basic function(s) of a firm is/are _____. (Points : 10)

marketing

accounting/finance

operations/production

All of the above

Question 4. 4. (TCO 11) The primary objective of supply chain strategy is _____. (Points : 10)

to build a chain of suppliers that focuses on maximizing value to the ultimate customer

to select suppliers primarily on response or differentiation

to reduce production lead time

to increase the number of supplier

None of the above

Question 5. 5. (TCO 2) Which of the following is an example of competing on quick response? (Points : 10)

A firm produces its product with less raw material waste than its competitors.

A firm offers more reliable products than its competitors.

A firm’s products are introduced into the market slower than its competitors.

A firm’s research and development department generates many ideas for new products.

None of the above

Question 6. 6. (TCO 2) Which of the following are the three areas that are significant in improving labor productivity? (Points : 10)

Basic education, diet of labor force, and social overhead

Global competition, cost differentiation, and rapid response products

Accounting, finance, and operations management

Charles Babbage, Fredrick Taylor, and Walter Shewhart

Question 7. 7. (TCO 2) According to the authors, what are the three key strategic concepts that allow firms to achieve their missions? (Points : 10)

Productivity, efficiency, and quality leadership

Differentiation, cost leadership, and quick response

Differentiation, quality leadership, and quick response

Distinctive competency, cost leadership, and experience

Question 8. 8. (TCO 3) Which of the following is NOT a step for developing benchmarks? (Points : 10)

Take action not to surpass the benchmark

Form a benchmark team

Identify benchmarking partners

Collect and analyze benchmarking information

Determine what to benchmark

Question 9. 9. (TCO 3) Which of the following is generally found in most JIT environments? (Points : 10)

High amounts of waste in the form of time and production waste

A great amount of variability

Inventory reduction

Push systems

Question 10. 10. (TCO 6) An engineering drawing _____. (Points : 10)

groups parts into families

shows graphically how the product is assembled

lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material

provides detailed instructions on how to perform a given task

shows the dimensions, tolerances, materials, and finishes of a component

Calculation Problems

Question 1. 1.(TCO 5) Weekly sales of 10-grain bread at the local Whole Foods Market are in the table below. Based on this data, forecast Week 9 using a 3-week moving average. Week Sales 1 415 2 389 3 420 4 382 5 410 6 448 7 395 8 425 (Points : 10) 407.3 422.66 380.22 414.8 Question 2. 2.(TCO 5) Favors Distribution Company purchases small imported trinkets in bulk, packages them, and sells them to retail stores. In February, the company predicted they would sell 10,000 trinkets. Their sales for February were 9,000 trinkets. Using a smoothing constant of an alpha of 0.3, the sales manager wants to forecast March sales using exponential smoothing. (Points : 10) 9,700 trinkets 9,800 trinkets 9,500 trinkets 10,200 trinkets Question 3. 3.(TCO 8) A product is currently made in a process-focused shop where fixed costs are $12,000 per year and variable cost is $50 per unit. The firm sells the product for $200 per unit. What is the break-even point for this operation? (Points : 10) 20 units 30 units 60 units 80 units Question 4. 4.(TCO 9) A truck stop is considering opening a new facility on the Interstate. The table below shows its ratings of four factors at each of two potential sites. Factor Weight Gary Mall Belt Line Affluence of local population .20 30 30 Traffic Flow .40 50 20 Parking availability .20 40 30 Growth potential .20 10 30 Using the factory rating method, the score for Gary Mall is _____ and the score for Belt Line is ______. (Points : 10) Gary Mall = 34; Belt Line = 28 Gary Mall = 36; Belt Line = 26 Gary Mall = 22; Belt Line = 33 Gary Mall = 19; Belt Line =24 Question 5. 5.(TCO 4) The Dulac Box plant produces 600 cypress packing boxes in two 8-hour shifts. The use of new technology has enabled them to increase productivity by 30%. Productivity is now approximately _____. (Points : 10) 32.5 boxes/hr 40.6 boxes/hr 48.75 boxes/hr 81.25 boxes/hr 300 boxes/hr Question 6. 6.(TCO 8) ABC Cleaners washing machines have a design capacity of 2,800 pounds a day. Because of scheduled maintenance of their equipment, management feels that only 2,700 pounds of clothes can be washed in a day. Yesterday three employees were sick and only 2,100 pounds of clothes were washed. What is the efficiency of the washing machine yesterday?(Points : 10) 120% 40% 80.8% 77.77% Question 7. 7.(TCO 3) A container of ball-bearings valued at $25,000, currently located in Houston, TX, needs to be delivered to the Morton, IL plant. The standard shipment method takes 2 days. However, for an additional charge of $500, the container can be sent overnight. The annual holding cost rate for this type of item has been estimated at 28%. What option is more economical? (Points : 10)

Question 8. 8.(TCO 11) Your company has compiled the following data on the small set of products that comprise the specialty repair parts division. Perform ABC analysis on the data. Which products do you suggest the firm keep the tightest control over? Explain. SKU Annual Demand Unit Cost R11 250 $250 S22 75 $90 T33 20 $60 U44 150 $150 V55 100 $75 (Points : 10)

Question 9. 9.(TCO 10) The MPS calls for 120 units of Product M. There are currently 30 of Product M on hand. Each M requires four of Component N. There are 20 units of N on hand. (a) Calculate the net requirements for M. (b) Calculate the gross requirements for N. (c) Calculate the net requirements for N. (Points : 10)

Question 10. 10.(TCO 8) A product is currently made in a process-focused shop where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm is considering a fundamental shift in process to repetitive manufacture. The new process would have fixed costs of $90,000 and variable costs of $5. What is the crossover point for these processes? For what range of outputs is each process appropriate? (Points : 10)

Essay Questions

Question 1. 1. (TCO 7) Explain the concepts of the product life cycle and identify the four phases of the product development cycle. Make sure you define the strategies used in each phase. (Points : 34)

Question 2. 2. (TCO 2) Describe core competencies and their relationship to operations management. Please provide an example for a manufacturing environment and a service environment. (Points : 33)

Question 3. 3. (TCO 3) Explain the linkage and importance of ethics in operations management. Identify three ethical challenges the OM managers have to deal with. (Points : 33)