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Question 3.3.(TCOs 3 & 6) Every Saturday, a bakery orders three cake-to-go wedding cakes to accommodate<br />
last minute purchases. Demand for the cakes can be described by a Poisson distribution that has a mean of two. The<br />
cakes cost $10 each to prepare, and they sell for $26 each. Any cakes that haven't been sold by the end of the day are<br />
sold for half price the next day. Usually, half of those are sold and the rest are tossed. What stocking level would be<br />
appropriate?(Points : 20)<br />
Question 5.5.(TCOs 4, 5, & 6) In the following scenario, when should an order for carved chocolate eggs be<br />
released?<br />
Bunny Helpers, Inc. has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the<br />
start of Week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are<br />
lot-for-lot), and quantities on-hand:<br />
Deluxe Easter Basket BOM Lead Time On-Hand<br />
Deluxe Easter Basket 1 week 10<br />
Dark Chocolate Truffles (2 per) 2 weeks 30<br />
Carved Chocolate Eggs (4 per) 1 week 50<br />
Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs; additionally, one box of Alka-<br />
Seltzer is included for those who overindulge. (Points : 30)<br />
Question 6.6.(TCOs 5, 7, & 9) Explain the advantages and disadvantages of producing and shipping in large lots.<br />
(Points : 20)<br />
Question 7.7.(TCOs 11, 12, 13, & 14) A private prisoner-transfer facility would lease for $50,000 per year, which<br />
the county is considering to lease. It estimates it will cost $50 per prisoner to process the paperwork at this new location.<br />
The county is paid a $75 commission for each new prisoner it processes. How many prisoners would they have to<br />
process annually to make a profit of $100,000 at this new location? (Points : 30)<br />
Question 8.8.(TCOs 10, 15, & 16) Evaluate the following statement: "In the lean philosophy, producing two or<br />
more order quantities increases throughput." Explain. (Points : 20) .<br />
Question 9.9.(TCOs 10, 15, & 16) The costs to do each of the three jobs on three alternate pieces of equipment<br />
are given below. Determine the job-equipment combination that will minimize total cost.<br />
Job<br />
A B C<br />
Crew 1 $28 20 18<br />
2 26 22 14<br />
3 43 35 30<br />
(Points : 30)
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