SCOT 510 Operations Management Foundations Sample Final Exam 2
Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit
SCOT 510 Operations Management Foundations
Sample Final Exam 2
1. Every Monday morning, a shipment of bananas is delivered to caf，e olin. Weekly demand for bananas is random with the following discrete distribution:
|
Number of bananas demanded per week |
probability |
|
O 5 1O 15 2O 25 3O 35 |
.O5 .1O .1O .2O .25 .15 .1O .O5 |
The bananas cost 1O cents and are sold for 5O cents each. Bananas unsold at the end of the week are sold to a local banana bread baker for 5 cents each.
(a) [2] what is the marginal cost of shortage？
(b) [2] what is the marginal cost of excess？
(c) [1] what is the optimal service level？
(d) [2] How many bananas should caf，e olin order each week？
2. paul Baldwin is an electric motor wholesaler. one of its top sellers is a small motor, which he purchases from a nearby distributor. paul receives deliveries every month from the distributor, who replenishes his motor inventory up to a level B that paul can specify. paul pays $12o.oo per motor and sells them for $2oo.oo. paul,s internal cost of capital is 25% annually. His optimal service level is 91%. Monthly demand is normally distributed with a mean of 3oo and a standard deviation of 4o.
(a) [3] what value of B do you recommend？
(b) [2] what is paul,s average level of cycle-stock？
(c) [2] what are paul,s average annual safety-stock holding costs？
3. Nutella is a chocolate hazelnut spread manufactured in Italy by Ferrero. The unmatched negotiation skills of George costanza, an executive at vandelay Industries, gave the chicago based importer exclusive regional distribution rights of this delicious product in 2oo3. pallets of 13oz Nutella jars cost vandelay $7,ooo each including tarifs and ship- ping, and are sold for $11,2oo to retailers. Total lead time, including order processing and shipping is two months. ordering and processing costs are $63o,ooo per order, and holding costs are based on an annual interest rate of 24%. Monthly demand is normally distributed with mean and standard deviation of 1ooo and 15o pallets respectively. George estimates that vandelay looses $2,4oo per out-of-stock pallet even though all stock-outs are back-ordered — the loss comes mostly from lost sales for other products.
(a) [2] what is the optimal order quantity？
(b) [3] what is the optimal service level？
(c) [2] what is the optimal reorder point？
Multiple choice Questions
Determine the single best answer for each of the following multiple choice questions and circle your answer on the answer sheet.
4. [1] In a Base-stock policy, the peak or maximum inventory position is, on average,
(a) B
(b) B/2
(c) B + safety stock
(d) B/2 + safety stock
(e) B + R
(f) B/2 + R
5. [1] A cross-dock facility may be considered advantageous instead of a general distribution center whenever
(a) the variance of demand is low
(b) you need a facility near a port or dock
(c) it must be located at a main cross-road or highway interchange
6. [1] opening a central warehouse to pool inventories becomes more advantageous when
(a) demand variance goes down
(b) retail holding costs go down
(c) the optimal service level goes up
7. [1] Let N be the number of independent demand streams one is pooling together. Then the “square root law” of pooling says that
(a) postponement time is proportional to（N
(b) z is proportional to （N
(c) variety is proportional to（N
(d) the pooled safety stock is proportional to（N
8. [1] A paint store takes advantage of pooling if they
(a) mix the paint in anticipation of future demand, thereby providing short lead times (b) carry a large variety of colors
(c) mix the paint after demand is realized
(d) mix the paint in extra large batches or pools
9. [1] The newsvendor model is so named because it
(a) estimates the variable cost of delivery as a function of demand density
(b) estimates the economical number and dispersion of newspaper stands across an area
(c) estimates the number of papers a newsvendor should begin his day with
(d) estimates the demand for newspapers as a function of price
1o. [1] In confederated pulp & paper, suppose that the more time a cunit of wood remains on the pile, the more likely it is to rot, and hence be unusable. The optimal service level
would, as a result,
(a) increase
(b) decrease
(c) remain unchanged
11. [1] In the JITD program, Barilla would take control of stocking decisions. The main purpose being to
(a) be able to synchronize production and deliveries more e伍ciently
(b) eventually replace some of the distributors
(c) get better demand information
12. [1] The JITD program allowed Barilla to
(a) produce long noodles, and then postpone the diferentiation of the product by later cutting the noodles after demand is realized
(b) reduce variance of end consumer demand
(c) better sequence production runs, thereby increasing efective capacity
13. [1] The beneits of pooling N demand streams are absent when the streams
(a) are not normally distributed
(b) are not identically distributed
(c) exhibit a strong positive correlation
(d) exhibit no correlation
14. [1] Toyota,s heijunka (even balance) production
(a) requires large batches to amortize long setups or changeovers
(b) may reduce the need to synchronize with suppliers
(c) may increase suppliers, demand variance
(d) may reduce dealers, inventories
15. [1] The bullwhip efect
(a) describes the efect on work in process as a bottleneck is introduced into a process low
(b) describes the increasing variance of orders as one moves up the supply chain
(c) describes what happened to the boy scouts on their hike
(d) was demonstrated with the random dice game played by Alex in The Goal
16. [1] using our deinitions,
(a) ill rate > service level
(b) ill rate < service level
(c) ill rate = service level
(d) it just depends.
17. [1] The function of a cross-dock is to
(a) merge and sort goods
(b) hold inventory in a location where real-estate costs are relatively low (c) cross delivery modes — for example, move goods from train to truck
(d) move goods from one owner to another, or cross ownership
18. [1] If no irm in a supply chain is able to know end demand (except the retailer), and information/transportation lags cannot be eliminated then
(a) it is still possible for clever managers to completely eliminate the bullwhip efect, (b) the bullwhip efect cannot be avoided.
2023-08-26