SNHU QSO600 final exam 2015

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 75 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 75 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: