**Multiple choice**** (****100**** points â€“ ****5 ****per question)**

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*(1-5) Answer questions 1 â€“ 5 based on the following information.

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To produce a product, one sequential process with 4 steps should be completed. Workers, steps and processing times are summarized in the following table:

Worker(s) |
Step |
Processing time (minutes) |

Amanda |
1 |
10 |

Brian & Cindy |
2 |
20 |

David |
3 |
10 |

Elena |
4 |
30 |

Notice that Brian & Cindy are resources in parallel. Suppose an order comes exactly every 20 minutes and each worker receives a wage rate of $30 per hour.

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1. What is (are) the bottleneck(s) of the process?

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A. Amanda

B. Brian & Cindy

C. David

D. Elena

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Answer: ______

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2. What is the flow rate? Â **(Find the closest answer)**

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A. 2 units per hour

B. 3 units per hour

C. 4 units per hour

D. 5 units per hour

E. 6 units per hour

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Answer: ______

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3. What is the flow time? Â **(Find the closest answer)**

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A. 10 minutes

B. 30 minutes

C. 40 minutes

D. 70 minutes

E. 100 minutes

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Answer: ______

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4. What is the implied utilization of the process? Â **(Find the closest answer)**

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A. 50%

B. 75%

C. 100%

D. 150%

E. 200%

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Answer: ______

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5. What is the direct cost of labor per flow unit? Â **(Find the closest answer)**

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A. $15 per flow unit

B. $20 per flow unit

C. $25 per flow unit

D. $45 per flow unit

E. $70 per flow unit

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Answer: ______

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6. Which of the following statements is true?

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A.Doubling the capacity of all the current bottleneck resources will always increase the process capacity.

B. An increase in demand rate always increases the flow rate.

C. An increase in process capacity always increases the flow rate.

D. None of the above

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Answer: ______

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*(7-10)Answer questions 7 â€“ 10 based on the following time and cost informationfor use in a project.

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Activity |
Immediate Predecessor |
Normal Time (days) |
Crash Time (days) |
Normal cost |
Crash Cost |

A |
None |
3 |
1 |
$500 |
$900 |

B |
A |
4 |
3 |
$500 |
$800 |

C |
A |
3 |
2 |
$500 |
$510 |

D |
B and C |
3 |
3 |
$400 |
$400 |

E |
A |
3 |
1 |
$800 |
$1000 |

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7. What is the minimum duration of this project without any crashing cost? **(Find the closest answer)Â Â ABD critical path**

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A.Total time is 6 days

B.Total time is 7 days

C. Total time is 8 days

D.Total time is 9 days

E.Total time is 10 days

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*Answer: ___ E___*

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8. What is the slack of Activity E? **(Find the closest answer)**

10-6=4

A.0

B.1 day

C. 2 days

D.3 days

E.4 days

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*Answer: __ E____*

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9. What is the total cost of this project under normal completion? **(Find the closest answer)**

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A.Total cost is $2,600

B.Total cost is $2,700

C.Total cost is $2,800

D.Total cost is $2,900

E. Total cost is $3,000

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*Answer: __ B____*

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10. If you crash this project to reduce the total time by one day, what is the lowest total cost?** (Find the closest answer)**

A.Total cost is $2,600

B.Total cost is $2,700

C.Total cost is $2,800

D.Total cost is $2,900

E. Total cost is $3,000

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*Answer: __ C____*

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11. A phone rental company currently owns 30 phones.Â There are, on average, 20 customers per day requesting a phone. The average waiting time for a customer to get a phone is 2 days. The company pays $1 per day to compensate each waiting customer. What is the total daily compensation expense for the company? **(Find the closest answer)**

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A. $1

B. $20

C. $40

D. $100

E. $200

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Answer: __**C____**

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12. A laptop rental company has 10laptops. On average, there are 10 customers arriving to rent the laptop per day. If there is a laptop available, then the arriving customer will rent it and keep it for 12 hours; otherwise, the customer waits until s/he can rent the laptop. How long do customers wait on average? **(Find the closest answer)**

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A. 5 minute

B. 10 minutes

C. 20 hour

D. 30 hours

E. 40 hours

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Answer: ______

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13. A hospital uses200boxes of sanitary gloves every week. The unit price of the box is $10 per box. The delivery fee is $5 independent of the order size. The hospital can be delivered immediately after an order is placed. The holding cost per box per week is $5. What is the optimal order size in boxes? **(Find the closest answer)**

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A. 25 boxes/order

B. 50 boxes/order

C. 75 boxes/order

D. 100 boxes/order

D. 125 boxes/order

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Answer: ______

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14. **(Continued from Problem 13) **Instead of the quantity you found in Problem 12, the hospital buys 100 boxes per order every time when the inventory hits zero. What is the total cost per week under this policy? **(Find the closest answer)**

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A. $2,000 per week

B. $2,200 per week

C. $2,400 per week

D. $2,600 per week

E. $2,800 per week

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Answer: ______

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15. **(Continued from Problem 13) **Suppose that the supplier refuses to deliver if the order size is less than 100 boxes. Then, what is the â€œnewâ€ optimal order quantity under this constraint? **(Find the closest answer)**

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A. 25 boxes/order

B. 50 boxes/order

C. 75 boxes/order

D. 100 boxes/order

E. 125 boxes/order

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Answer: ______

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16. Amy opened an ice cream store near the campus. She can get the wholesale price of $2.5 for each ice cream bar and she sells it to students at $5 each. At the end of day, she can salvage the leftover bars at $1 each. The estimated demand follows a Normal distribution with the mean of 200 bars and the standard deviation 50 bars. How many bars should she order? **(Find the closest answer)**

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A. 170 bars

B. 185 bars

C. 200 bars

D. 215 bars

E. 230 bars

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Answer: ______

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17. A taco boy orders breakfast tacos from Warrior Tacos. The cost for Warrior Tacos to make a taco is $1 per taco. Currently, the taco boy orders from Warrior Taco for the taco at $3 per taco. The taco boy then sells the tacos to students at TAMUCT at $4 per taco. There is no salvage value for any unsold tacos. The potential demand every day follows the table below.

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Possible demand D |
Probability Pr(D) |

50 |
40% |

100 |
30% |

150 |
20% |

200 |
10% |

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How many tacos per day should the taco boy order from Warrior Taco to maximize his expected profit? **(Find the closest answer)**

A. 50 tacos

B. 100 tacos

C. 150 tacos

D. 200 tacos

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Answer: ______

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18. **(Continued from Problem 17)**Suppose the taco boy and Warrior Taco belong to the same company (a centralized firm). How many tacos should the company make every day? **(Find the closest answer)**

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A. 50 tacos

B. 100 tacos

C. 150 tacos

D. 200 tacos

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Answer: ______

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19. **(Continued from Problem 17)**Suppose Warrior Taco now offers a revenue sharing contract with the taco boy. The taco boy pays $2 per taco to Warrior Taco up front (which is lower than original purchasing cost $3). However, for each taco sold to the students (i.e., end-consumers), the taco boy needs to give $0.5 to Warrior Taco (recall that the selling price is $4 per taco). How many tacos should the taco boy order from Warrior Taco every day? **(Find the closest answer)**

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A. 50 tacos

B. 100 tacos

C. 150 tacos

D. 200 tacos

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Answer: ______

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20. Which of the following does NOT reduce the Bullwhip effect?

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A. Shorter lead time

B. Reducing inventory holding cost

C. More stable pricing policy

D. Adding a restriction on the amount of orders

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Answer: __A____

Subject | Mathematics |

Due By (Pacific Time) | 12/11/2014 10:52 pm |

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