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 FactorWeightAbbetonBaysideCane CreekDunnville
Work ethics0.1880907075
Quality of life0.1675859590
Labor laws/unionization0.1290606070
Infrastructure0.1060506070
Education0.0880908595
Labor skill and education0.0775657080
Cost of living0.0670808575
Taxes0.0565705560
Incentive package0.0590957080
Government regulations0.0340506555
Environmental regulations0.0365607080
Transportation0.0390809580
Space for expansion0.0290959090
Urban proximity0.0260907080

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. Wkrs10Regular$16Hiring$500 
 Units/wkr50Overtime$24Firing$500 
 Beg. Inv.0Subk$33Inventory$20 
 MonthDemandRegOTSubkInv#Wkrs#Hired#Fired
 Jan5005000001000
 Feb5005000001000
 Mar10001,00000020100
 Apr12001,000200002000
 May20001,0001,000002000
 Jun4004000008012
 Jul400400000800
 Aug10001,00000020120
 Sep10001,0000002000
 Oct15001,50000030100
 Nov70003,5003,5000070400
 Dec50050000010060
 Total17,00012,3004,700002467272

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: XLLC: 0Period
Lot Size: Min 50LT: 212345678
Gross Requirements 25305625100403020
Scheduled Receipts  50      
Projected on Hand30        
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.

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