EXAMINATION 1, Version A



EXAMINATION 2, Version B

Use a Scantron Form No. 886-E to record your choice of the best answer to each of the following questions. You have the full period to answer the questions.

The following questions are worth three (3) points each.

1. The broad view of JIT is now often termed __________________________.

a) vendor-managed inventory

b) business process reengineering

c) lean production

d) cycle time management

e) e-distribution

2. Beliefs that help define the JIT philosophy include all of the following except

a) Simplicity

b) Visibility

c) Flexibility

d) Push production

e) Continuous improvement

3. According to JIT, by eliminating inventory we can clearly identify and work on eliminating them.

a) Obsolete products

b) Malfunctioning machines

c) Grievances

d) Product imperfections

e) Problems

4. Which forecasting method assumes that next period’s forecast is equal to this period’s actual value?

a) Simple mean

b) Ignorant

c) Basic

d) Naïve

e) Nescient

5. What is the mean absolute deviation of the following forecasts?

Month Actual Sales Forecast Abs. Deviation

January 68 60 8

February 48 50 2

March 50 60 10

April 30 30 0

a) (1 20

b) 5

c) 20 MAD = 20 ÷ 4 = 5

d) 1

e) 42

6. A focused factory is one that __________________________________________________.

a) produces many products with options

b) is small and highly specialized

c) has a large number of management specialists

d) is vertically integrated

e) is located at the center of demand

7. Capacity cushions can be helpful if _____________________________________________.

a) demand is greater than expected

b) sales need to be buffered from production

c) total quality management fails

d) productivity is too high

e) there is excess capacity

8. It takes many pounds of milk to make one pound of cheese. Therefore, there are many cheese factories in dairy states because _________________________________.

a) of reputation

b) “cheese heads” eat a lot of cheese

c) of transportation costs

d) making cheese is a batch process

e) customers prefer domestic cheese

9. In choosing a location, the provides an easy way to calculate X and Y coordinates for a good starting point.

a) transportation method

b) break-even approach

c) factor rating method

d) center of gravity approach

e) load-distance method

10. Shipbuilding is an example of which layout type?

a) inverted

b) hybrid

c) process

d) fixed position

e) product

11. What is typically used to quantitatively compare the effectiveness of layouts?

a) trial and error

b) process control charts

c) load-distance model

d) mean absolute deviation (MAD)

e) exponential smoothing

12. What is the term for the maximum amount of time each workstation has to complete its assigned task?

a) output rate

b) task time

c) station time

d) cycle time

e) output time

13. The bottleneck determines ______________________________.

a) which station has the minimum cycle time

b) the minimum cycle time of the whole process

c) the maximum cycle time of the whole process

d) the point at which a product layout converts to a process layout

e) which station has the maximum output rate

14. What occurs when a customer enters a waiting line but decides to exit before being served?

a) balking

b) walking

c) reneging

d) vacillating

e) jockeying

15. Which of the ways to change a waiting line system is related to the concept of division of labor?

a) changing the priority rule

b) changing the number of lines

c) changing the number of phases

d) changing customer arrival rates

e) changing the number of service facilities

16. The approach that details the tasks of a job and how to do them is ___________________________.

a) work measurement

b) job evaluation

c) methods analysis

d) job design

e) work sampling

17. Standard times can be used to measure performance of individual workers. If a worker fails to match the standard time, the company should do what?

a) put the worker on probation

b) ignore the situation

c) change the standard time

d) provide training to improve the worker’s performance

e) fire the worker

18. Companies need to design compensation systems that ______________________________________.

a) punish poor performance

b) reinforce the behaviors needed to meet the company’s objectives

c) are easy to administer

d) do not differ significantly from those of other firms in the industry

e) are innovative

19. JIT considers people to be a company’s most precious resource.

a) True

b) False

20. A qualitative forecast is made subjectively by the forecaster.

a) True

b) False

21. The ratio of actual output rate to capacity is utilization.

a) True

b) False

22. As compared to a process layout, a product layout generally requires less skilled workers.

a) True

b) False

23. Changing the demand pattern by offering off-peak discounts represents an effective way to try to manage long waiting lines.

a) True

b) False

24. The fact that human activities typically improve when they are done on a repetitive basis is described by a learning curve.

a) True

b) False

-

The following problems are worth ten (10) points each.

1. John’s Office Supply Company has the following order history over the last 7 months.

Forecast

April 65

May 180 Ft+1 = (At + (1-α)Ft

June 30

July 90 100

August 120 97.5 FAUG=.25*90+.75(100)=97.5

September 190 103.13 FSEP=.25*120+.75*97.5=103.13

October 70 FOCT=.25*190+.75*103.13=124.85

FNOV=.25*70+.75*124.85=111.14

Compute an exponential smoothing forecast for November, with a smoothing constant of α = .25. To start the procedure, assume that the forecast for July was 100. Round each forecast to two decimal places. Forecast for November is 111.14 04 111.

2. Supershirtco plans to open a new factory and is looking for a suitable location. They have narrowed their choice down to three locations, Lima, Peru; Rome, Italy; and Nome, Alaska. They have defined four factors and have assigned weights to these factors as follows: wage rates (60), construction costs (20), logistics (10), and climate (10). They then rated the three locations for the four factors, using a scale of one to five. Their ratings are as follows:

Location

Lima Rome Nome

Factor Weight Score Score Score

Wage rates 60 5 300 3 180 1 60

Construction costs 20 4 80 2 40 5 100

Logistics 10 3 30 2 20 5 50

Climate 10 3 30 5 50 1 10

440 290 220

(a) Calculate the scores for each location. Lima: 440, Rome: 290, Nome: 220

(b) According to the model which location should they choose? Choose Lima as it has the highest score

4. Consider a single-line, single-server waiting line system. Suppose that customers arrive according to a Poisson distribution at an average rate of 60 per hour, and the average (exponentially distributed) service time is 45 seconds per customer.

λ = 60 customers/hour μ = 3600 seconds/hour/45 seconds/customer = 80 customers/hour

a) What is the average utilization of the system?

ρ = λ / μ = 60/82 = .75

b) What is the average number of customers in the system?

L = λ/ μ- λ = 60/80-60 = 3 customers

c) What is the average number of customers waiting in line?

LQ = ρ*L = .75 * 3 = 2.25 customers

d) What is the average time spent in the system (in minutes)?

W = 1/ μ- λ = 1/80-60 = 1/20 hour or 3 minutes

e) What is the average time spent in line (in minutes)?

WQ = ρ*W = .75 * 3 = 2.25 minutes

Formulas--Examination 2

Chapter 7: JIT

Kanbans: [pic] N—no. of kanbans, D—demand rate, T—lead time, S—safety stock, C—container size

Chapter 8: Forecasting

Naïve: Ft+1 = At

Moving average: [pic] [n – number of periods to be used]

Weighted moving average: [pic] [Ct – weight for period t]

Exponential smoothing: [pic]

Linear regression: Y = a + bx [pic]

Forecast error: At – Ft [pic] [pic]

[pic]

Note: Ft is the forecast and At is the actual in period t

Chapter 9: Capacity Planning and Facility Location

[pic][pic]

Chapter 10: Facility Layout

[pic]

Supplement D: Waiting Lines

[pic]

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