finalage 1Question 1.1. (TCO 1) Define product package. (Points : 5)The exterior wrappingThe shipping containerA combination of goods and servicesGoods in a manufacturing organizationCustomer relations in a service organizationQuestion 2.2. (TCO 1) All of the following statements are not true about systems approach, except (Points : 5)a systems viewpoint is almost always beneficial in decision making.a systems approach emphasizes interrelationships among subsystems.a systems approach concentrates on efficiency within subsystems.a systems approach is essential whenever something is being redesigned or improved.All of the above are true.Question 3.3. (TCOs 3 & 6) The practice of cycle counting has as its main purpose (Points : 5)to count all the items in inventory.to count bicycles and motorcycles in inventory.to reduce discrepancies between inventory records and actual inventory.to reduce theft.to count 10% of the items each month.Question 4.4. (TCOs 3 & 6) Which one of the following is most relevant for the EOQ model? (Points : 5)Ordering items with dependent demandDetermining safety stockOrdering perishable itemsDetermining fixed interval order quantitiesDetermining fixed order quantitiesQuestion 5.5. (TCO 2) The subassemblies and components that are needed to produce and/or assemble a product can be displayed as (Points : 5)an assembly time chart.a product structure tree.MRP II.pegging.a Gantt chart.Question 6.6. (TCO 2) The process of identifying parent items in MRP is called (Points : 5)paternity.pegging.requirement I.D.relationship tracking.master scheduling.Question 7.7. (TCOs 4, 5, & 6) Which MRP input lists the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product? (Points : 5)Master production scheduleBill of materialsInventory recordsAssembly-time chartNet-requirements chartQuestion 8.8. (TCOs 4, 5, & 6) All of the following are true concerning MRP II, except which one? (Points : 5)It is basically a computerized system.It can handle complex planning and scheduling quickly.It involves other functional areas in the production planning process.It involves capacity planning.It produces a production plan that includes all resources required.Question 9.9. (TCOs 5, 7, & 9) Which of the following is NOT included in logistics? (Points : 5)The movement of materials within a production facilityIncoming shipments of goods or materialsOutgoing shipments of goods or materialsCustomer selectionReturned goods processingQuestion 10.10. (TCOs 5, 7, 9) RFID chips:(I) are used to track goods in distribution.(II) are used to track job progress in production.(III) are used to provide special instructions to operators.(IV) can be used in inventory record keeping. (Points : 5)II and III onlyI and II onlyII, III, and IVI, II, and IVIV onlyQuestion 11.11. (TCOs 5, 7, & 9) Actively managing the supply chains is more desirable for business organizations due in part to (Points : 5)more potential vendors.increasing globalization.downsizing.the Internet.RFIDs.Question 12.12. (TCOs 11, 12, 13, & 14) An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of $70 per unit. The break-even point volume is (Points : 5)100.2,000.500.1,000.None of theseQuestion 13.13. (TCOs 11, 12, 13, & 14) For fixed costs of $2,000, revenue per unit of $2, and variable cost per unit of $1.60, the break-even quantity is (Points : 5)1,000.1,250.2,250.5,000.None of theseQuestion 14.14. (TCOs 11, 12, 13, & 14) If the output rate is increased, but the average unit costs also increase, then we are experiencing (Points : 5)market-share erosion.economies of scale.diseconomies of scale.value-added accounting.step-function scale up.Question 15.15. (TCOs 10, 15, & 16) Which of the following qualifies as a work center? (Points : 5)MachineGroup of machinesDepartmentFacilityAll of the aboveQuestion 16.16. (TCOs 10, 15, & 16) The cycle time for a standard container, which holds 90 jars, averages 45 minutes. If the jar-filling workstations use 3,200 glass jars each 8 hours of production, and management uses an efficiency factor of 20%, how many containers should be used? (Points : 5)4 containers3 containers5 containers2 containersPage 2Page 2Question 1.1.(TCO 1) Based on the data below, develop an aggregate plan for the next six months that uses inventory, regular time and overtime, as well as back orders. The plan must wind up with no units in ending inventory in Period 6.- Regular time capacity is 150 units per month.- Overtime capacity is 20 units per month.- Overtime cost is $30 per unit.- Back order cost is $20 per unit.- Inventory holding cost is $5 per unit.- Regular time cost is $20 per unit.- Beginning inventory is zero.MonthForecast118021703140415051306150(Points : 30)Question 2.2.(TCO 1) Evaluate the statement that managers should most often rely on quantitative rather than qualitative techniques for important decisions since quantitative approaches result in more accurate decisions. Cite examples to back up your argument. (Points : 20)Question 3.3.(TCOs 3 & 6) Every Saturday, a bakery orders three cake-to-go wedding cakes to accommodate last minute purchases. Demand for the cakes can be described by a Poisson distribution that has a mean of two. The 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 sold for half price the next day. Usually, half of those are sold and the rest are tossed. What stocking level would be appropriate?(Points : 20)Question 5.5.(TCOs 4, 5, & 6) In the following scenario, when should an order for carved chocolate eggs be released?Bunny Helpers, Inc. has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of Week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot), and quantities on-hand:Deluxe Easter Basket BOMLead TimeOn-HandDeluxe Easter Basket1 week10Dark Chocolate Truffles (2 per)2 weeks30Carved Chocolate Eggs (4 per)1 week50Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs; additionally, one box of Alka-Seltzer is included for those who overindulge.(Points : 30)Question 6.6.(TCOs 5, 7, & 9) Explain the advantages and disadvantages of producing and shipping in large lots. (Points : 20)Question 7.7.(TCOs 11, 12, 13, & 14) A private prisoner-transfer facility would lease for $50,000 per year, which the county is considering to lease. It estimates it will cost $50 per prisoner to process the paperwork at this new location. The county is paid a $75 commission for each new prisoner it processes. How many prisoners would they have to process annually to make a profit of $100,000 at this new location? (Points : 30)Question 8.8.(TCOs 10, 15, & 16) Evaluate the following statement: “In the lean philosophy, producing two or more order quantities increases throughput.” Explain.(Points : 20).Question 9.9.(TCOs 10, 15, & 16) The costs to do each of the three jobs on three alternate pieces of equipment are given below. Determine the job-equipment combination that will minimize total cost.JobABCCrew 1$28201822622143433530(Points : 30)Set 2BSOP 334 Week 8 Final ExamPage 11. (TCO 1) Which of the following functions involves budgeting, analysis of investment proposals, and provision of funds?2. (TCO 1) Transformation includes all of the following, except3. (TCO 1) Which of the following is providing new opportunities for productivity improvements?4. (TCOs 3 & 6) In an effort to reduce inventory, which of the following interactions with vendors would potentially be helpful?5. (TCOs 3 & 6) Which of the following costs related to order size is nonlinear?6. (TCO 2) Which of the following is a computer-based information system designed to handle ordering and scheduling of dependent-demand inventories?7. (TCO 2) Net material requirements can be described as8. (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 called9. (TCOs 4, 5, & 6) How does a net-change system work?10. (TCOs 4, 5, & 6) The MRP approach that is used for components or subassemblies to compensate for variations in lead times is called11. (TCOs 4, 5, & 6) A lead time service level of 90 percent implies which of the following?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 the13. (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.14. (TCO 11, 12, 13, & 14) Given a product mix, scheduling difficulties, quality factors, and so on, the maximum expected output is15. (TCOs 11, 12, 13, & 14) Given the following information, calculate the efficiency.Effective capacity = 50 units per dayDesign capacity = 100 units per dayActual output = 30 units per day16. (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?17. (TCOs 10, 15, & 16) The matrix below shows relative costs for various job-machine combinations. Which set of pairs constitutes the minimum cost solution using the assignment method?Page 21. (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?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.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.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.5. (TCOs 5, 7, & 9) Explain the advantages and disadvantages of frequent deliveries of small shipments.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?7. (TCOs 10, 15,& 16) Compare and contrast kanban and CONWIP.8. (TCOs 8 & 9) MPS planners use what is referred to as time fences? What are they, and why are they used?