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# BSOP 334 WEEK 8 FINAL EXAM

## Question 8. 8. (TCO 2)

Question 8. 8. (TCO 2) When an MRP system is periodically updated to account for all changes that have occurred within a given time interval, the process is called (Points : 5) Question 9. 9. (TCOs 4, 5, & 6) How does a net-change system work? (Points : 5) Question 10. 10. (TCOs 4, 5, & 6) The MRP approach that is used for components or subassemblies to compensate for variations in lead times is called (Points : 5) Question 11. 11. (TCOs 4, 5, & 6) A lead time service level of 90 percent implies which of the following? (Points : 5) Question 12. 12. (TCOs 5, 7, & 9) The dynamic store of information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size), which is an input to the MRP, is the (Points : 5) Question 13. 13. (TCOs 5, 7, & 9) What will be the quantity of the first planned receipt if net requirements for component J are as follows: 60 units in Week 2, 40 units in Week 3, and 60 units in Week 5? A fixed-period, two-period lot-sizing method is used. (Points : 5) Question 14. 14. (TCO 11, 12, 13, & 14) Given a product mix, scheduling difficulties, quality factors, and so on, the maximum expected output is (Points : 5) Question 15. 15. (TCOs 11, 12, 13, & 14) Given the following information, calculate the efficiency. Effective capacity = 50 units per day Design capacity = 100 units per day Actual output = 30 units per day (Points : 5) Question 16. 16. (TCOs 10, 15, & 16) In an assignment method problem, it takes Abe 3 hours to build a birdhouse and 4 hours for a doghouse, while Betty takes 4 hours for a birdhouse and 3 hours for a doghouse. What is the reduced cost (in hours) of assigning Abe to build the doghouse? (Points : 5) Question 17. 17. (TCOs 10, 15, & 16) The matrix below shows relative costs for various jobmachine combinations. Which set of pairs constitutes the minimum cost solution using the assignment method? Machine A B C Job 1 \$6 00 2 0 34 3 0 12 (Points : 5) 1. (TCO 1) A company has found that introducing one additional worker enables a process improvement that reduces processing time for each unit so that output is increased by 25% with less material. Under the old process, five workers could produce 60 units per hour. Labor costs are \$12/hour, and material input was previously \$16/unit. For the new process, material is now \$10/unit. Overhead is charged at 1.6 times direct labor cost. Finished units sell for \$31 each. What increase in productivity is associated with the process improvement? (Points : 30) 2. (TCOs 3 & 6) If instantaneous replenishment is assumed when given the same demand, setup/ordering costs, and carrying costs, then the EOQ calculated using incremental replenishment will be _____. Illustrate using a numeric example. (Points : 30) What is the optimal production size?

3. (TCO 2) For the product tree below, how many Cs are needed if 17 Ps are needed and on-hand inventory consists of 10 As, 15 Bs, 20 Cs, 12 Ms, and 5 Ns? Show your work. (Points : 30) 4. (TCOs 4, 5, & 6) Given the tree below, develop a material requirements plan for end-item P and its components. Assume that all lead times are one week and that lot-for-lot ordering is used, except for Item F, which is ordered in multiples of 400 units. 6. (TCOs 11, 12, 13, & 14) A small business owner is contemplating the addition of another product line. Capacity increases, and equipment will result in an increase in annual fixed costs of \$50,000. Variable costs will be \$25 per unit. What unit selling price must the owner obtain to break even on a volume of 2,500 units a year? B) Because of market conditions, the owner feels a revenue of \$47 is preferred to the value determined in part A. What volume of output will be required to achieve a profit of \$16,000 using this revenue?(Points : 30) 5. (TCOs 5, 7, & 9) Explain the advantages and disadvantages of frequent deliveries of small shipments.(Points : 25) 7. (TCOs 10, 15,& 16) Compare and contrast kanban and CONWIP. (Points : 20) 8. (TCOs 8 & 9) MPS planners use what is referred to as time fences? What are they, and why are they used? (Points : 20)

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