GSCM 206 Managing Operations Across The Supply Chain Week 8 Final Exam Answer

1. (TCO 7) A product’s life cycle is divided into four stages, which are _____.

2. (TCO 8) A job shop is an example of a(n) _____.

3. (TCO 1) The basic function(s) of a firm is/are _____.

4. (TCO 11) Which of the following is an advantage of drop shipping?

5. (TCO 2) Which of the following is an example of competing on quick response?

6. (TCO 2) Which of the following is not an operations strategy?

7. (TCO 2) Which are the reasons for a firm to internationalize operations?

8. (TCO 3) Which of the following is NOT a step for developing benchmarks?

9. (TCO 3) The use of information technology to monitor and control a physical process is known as _____.

10. (TCO 6) Products designed in easily segmented components are known as _____.

1. (TCO 5) What is the approximate forecast for May using a 4-month moving average?

2. (TCO 5) In May, the actual product demand was 210 units. 200 units had been forecasted for this month. Using exponential smoothing with an alpha of 0.3, determine the June forecast

3. (TCO 8) ABC Motors, Inc. wants to increase capacity by adding another wheel balancer. The fixed cost for a machine is $6,400, and its variable cost is $3.50 per unit. ABC charges $7.50 to balance one wheel. What is

the break-even point in units?

4. (TCO 9) A truck stop is considering opening a new facility on the Interstate. The table below shows its ratings of four factors at each of two potential sites.

5. (TCO 4) Gibson Valves produces cast bronze valves on an assembly line, currently producing 2,000 valves each 8-hour shift. If the productivity is increased by 10%, Gibson would be producing _____.

6. (TCO 8) ABC Cleaners washing machines have a design capacity of 2,800 pounds a day. Because of scheduled maintenance of their equipment, management feels that only 2,700 pounds of clothes can be washed in a

day. Yesterday three employees were sick and only 2,100 pounds of clothes were washed. What is the efficiency of the washing machine yesterday?

7. (TCO 3) A container of ball-bearings valued at $25,000, currently located in Houston, TX, needs to be delivered to the Morton, IL plant. The standard shipment method takes 2 days. However, for an additional charge

of $500, the container can be sent overnight. The annual holding cost rate for this type of item has been estimated at 28%. What option is more economical?

8. (TCO 11) An insecticide distributor has a demand for 15,000 bags of insecticides per year. This company operates 300 days per year. On average, it takes 5 working days to receive an order from their supplier. What is

the reorder point?

9. (TCO 10) The MPS calls for 110 units of Product A. There are currently 60 of Product A on hand. Each A requires two of Part B. There are 30 units of B available.

(a) Calculate the net requirements for A.
(b) Calculate the gross requirements for B.
(c) Calculate the net requirements for B.

10. (TCO 8) A product is currently made in a process-focused shop where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm is considering a fundamental shift in process to repetitive manufacture.

The new process would have fixed costs of $90,000 and variable costs of $5. What is the crossover point for these processes? For what range of outputs is each process appropriate?

1. (TCO 7) Explain the concepts of the product life cycle and identify the four phases of the product development cycle. Make sure you define the strategies used in each phase.

2. (TCO 2) Describe core competencies and their relationship to operations management. Please provide an example for a manufacturing environment and a service environment.

3. (TCO 3) Explain the concept of supply chain strategies and their linkage to operations management. Identify in detail three different types of supply chain strategies.

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GSCM 206 Managing Operations Across The Supply Chain Week 8 Final Exam Answer

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