Operations Fundamentals Mid-Term
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Name:_________________________________ Date:______________________
Multiple Choice: select the best answer; each worth 2 points for a total of 50 points.
1. Operation Management is a set of activities that forms goods and service by?
a. Transforming inputs into outputs.
b. Managing raw material and inventory.
c. Efficient and effective processes.
d. Transforming ideas into action.
2. What three functions are necessary in order to produce a product or deliver a service?
a. IT, Finance and Sales
b. Operations, Finance and IT
c. Marketing, Operations and Finance
d. Strategic planning, Marketing and Sales
3. When defining the supply chain, which does NOT belong?
a. A global network of organizations and activities that supplies a firm with goods
and services.
b. Specialize expert knowledge, instant communications, and cheaper
transportation.
c. Organizations rely on other organization’s product and services to reduce cost.
d. Raw materials received and stored in inventory for operations.
4. The operations management process includes which of the following?
a. Planning
b. Organizing
c. Staffing
d. Leading
e. Controlling
f. All the above
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5. The objective of Inventory Management is to……
a. Ensure product is available to meet customer demands.
b. Strike a balance between inventory investment and customer service.
c. Minimize costs of buy raw materials.
d. Maintain enough raw materials for production.
6. Inventory management solves what two basic issues?
a. The amount of raw material needed for production and customers.
b. The cost of raw materials and the timing when the materials are needed.
c. How much and when to order.
d. How much goods and services are needed to meet demand and how to deliver
the goods and services.
7. Which type of demand is influenced by the market?
a. Dependent
b. Independent
c. Co-dependent
d. Inherent
8. Which demand exhibits on-again, off again patterns?
a. Dependent
b. Independent
c. Co-dependent
d. Inherent
9. The Economic Order Quantity is used to assist an organization to determine?
a. The amount of goods customers need to order to be consider economical.
b. The desired inventory level.
c. The level of product needed to meet demands.
d. The amount of of production runs an organization needs to complete to become
cost effective.
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10. The following are components of what type of inventory cost: order preparation
expenses, mailing charges, shipping cost?
a. Total cost
b. Ordering cost
c. Holding cost
d. Maintenance cost
11. The following are components of what type of inventory cost: finance charges,
warehousing, and shelf space, handling equipment, bookkeeping, insurance, taxes or
spoilage?
a. Total cost
b. Ordering cost
c. Holding cost
d. Maintenance cost
12. Ordering costs ______________ as the order size increases.
a. Declines
b. Increases
c. Constant
d. No effect
13. Holding costs are __________ regardless of the number of units ordered.
a. Declines
b. Increases
c. Constant
d. No effect
14. An inventory system can be designed by defining two inventory rules:
a. Order Quantity and Re-order Point
b. Ordering and Holding
c. Order Quantity and Inventory Quantity
d. Production cycle and Customer Demands
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15. Units that an organization will carry over and above Q in order to meet contingency is
known as?
a. Overflow stock
b. Extra inventory
c. Safety Stock
d. Safety inventory
16. Savings are realized through reduced ordering cost and lower cost of buying is a result
of?
a. Quantity Discount
b. Vendor Discount
c. Inventory Discount
d. Sales Quantity
17. The production order quantity model helps organizations by?
a. Finding the correct inventory amount needed to support production at the most
economical cost of the inventory system.
b. Finding the best batch size for production at the most economical cost of the
inventory system.
c. Finding the correct amount of units needed to support demand.
d. None of the above.
18. What type of decision would political risks, cultural issues and exchange rates be part
of?
a. Site
b. Region
c. Country
d. Rural
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19. What type of decision would taxes, labor availability and environmental regulations part
of?
a. Site
b. Region
c. Country
d. Rural
20. The most popular method of evaluating locations is?
a. The Factor- Rating Method
b. Location Cost-Volume Analysis
c. Center-of-Gravity Method
d. Transportation Model
21. Method used to find a distribution center that will minimize distribution costs?
a. The Factor- Rating Method
b. Location Cost-Volume Analysis
c. Center-of-Gravity Method
d. Transportation Model
22. Method used to determine the best routes to ship from several points of supply
(sources) to points of demands (destination) to minimize production and shipping costs.
a. The Factor- Rating Method
b. Location Cost-Volume Analysis
c. Center-of-Gravity Method
d. Transportation Model
23. Which of the following is NOT a goal of a plant, office or retail layout?
a. Higher utilization of space, equipment, and people
b. Improved flow of information, materials, or people
c. Improved use of utility resources.
d. Improved employee morale and safe working conditions
e. Improved customer/client interaction
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24. Ambient conditions, spatial layout, signs, symbols or artifacts are part of which layout
concept?
a. Cross-docking
b. Workcell
c. Servicescapes
d. Product-oriented
25. The integration of external network of vendors or partners into firm’s strategy is what
type of management?
a. Human resource management
b. Inventory management
c. Quality Management
d. Supply chain management
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26. ABC Company has a demand for 2000 units each year. The cost of each unit is $100. It
costs ABC $200 to place an order and $4 to carry a unit in the stock pear year. Further,
the supplier needs week and a half to deliver their order. Assume 50 weeks to a year.
a. Calculate the Total Annual Cost of the System. (10 points)
D: 2,000 cases/year
CO: $200/order
CH: $4/case/year
Q: ?
R: ?
L: 1.5 weeks
P: $100/case
T: ?
TS: ?
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27. The VAHC Lab uses 500 test kits each year. CO = $10, CH = $2/ kit/ year. Orders of fewer
than (A) 73 kits cost $60/case; (B) 73 through 144 kits cost $55/ kit; and (C) larger orders
cost $50/ kit.
Determine which order volume provides the best discount in terms of savings (10 points)
Operations Fundamentals Mid-Term
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28. Ashlee's Beach Chairs Company produces upscale beach chairs. Annual demand for the
chairs is estimated at 1,000 units. The frames are made in batches before the final
assembly process. Ashlee's final assembly department needs frames at a rate of 20 per
week. Ashlee's frame department can produce 25 frames per week. The setup cost is
$100/setup, the annual holding cost per frame is $4, and the cost of production $30 a
frame. The company operates 50 weeks per year. Set up an optimum inventory system
for Ashlee that would minimize the annual cost of the inventory system. Find the
following: (Worth 10 points)
a. Production quantity (Q)
b. Number of production runs
c. Length of production run (tp)
d. Peak inventory
e. Average inventory
f. Idle time (ti)
g. Cycle time
h. Number of cycles
i. Total annual inventory cost (T)
j. Total annual cost of the system (TS)
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29. Complete the Factoring Rate Method table and determine which location is the best
choice. (10 points)
Key
Success
Factors
Weight Scores (Out of 100) Weighted scores
China Taiwan China Taiwan
Labor
market
.20 80 60
People to
car ratio
.05 50 60
Per
capita
income
.10 80 80
Tax
structure
.40 70 70
Education
& health
.25 60 70
Totals
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30. Drew Rosen Corp. is considering adding a fourth plant to its three existing plants in
Decatur, Minneapolis and Carbondale. Both St. Louis and East St. Louis are being
considered. Evaluating only the transportation costs per units as provided, decide which
site is provides the least cost. (10 points)
From Existing Plants
To Decatur Minneapolis Carbondale Demand
Blue Earth $20 $17 $21 250
Ciro $25 $27 $20 200
Desmoines $22 $25 $22 350
Capacity 300 200 150
From Proposed Plants
To East St. Louis St. Louis
Blue Earth $29 $27
Ciro $30 $28
Desmoines $30 $31
Capacity 150 150
Cory:
Describe the ethical issues that anthropologists experience when studying human subjects.
When anthropologists are observing a foreign society, they need to make sure that they do not harm the community in any way by obeying their rules and ethical codes. This can be difficult because the anthropologists may have their own moral obligations or religion, so they may have a different point of view than the foreign society and have a hard time dealing with the actions or beliefs of it. (Anthropology and World Religions) The are many different types of ethical issues that could be found while conducting research in the middle east from the way that females are treated to the variations of the religious belief system that are held in that area of the world. While this forum wants us to post about the different types of issues that could arise while researching humans it is hard to just list out the possible issues that could arise while conducting research. Due to the number of factors that can play into the issues coming up. From the beliefs of the person that you are studying to the beliefs that the anthropologist them selves hold. You also could have an immense cultural difference between the person that you are studying to yourself that could cause you issue when trying to obtain your research. Though there are many different types of things that could lead to ethical issues anthropologist are true professionals and have learned the proper way to set these aside and conduct the job that they were trained to do.
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Justin:
For this weeks forum, I think it would be fun to answer the second question. I love crime TV shows. I was in elementary school when the TV show Bones premiered. The show ran from 2005-2017. Monday- Friday TNT plays Bones episodes from noon till 3 or 4 pm. They do it year round. I am a fan of Buffy The Vampire Slayer so it was pretty cool to see the vampire love interest of Buffy now playing an FBI agent. The main character is Temperance Brennan. She is a forensic anthropologist who is extremely brilliant. In the beginning she is just a forensics anthropologist just doing her thing. She meets FBI agent Seeley Booth. He asks her to help him on a case, after they solve the case he is impressed with Dr. Brennan's skills with how she can examine a deceased body and know details about the person. I think the portrayal of Dr. Brennan's research so far convers some stuff we have learned in the course so far. Dr. Brennan examines either bodies of genocide or bodies that have been deceased for many years. Also, for a lot of episodes is has an archaeology type of feel since they are at the crime scenes digging and examining the bodies and taking pictures. It seems like the crimes scenes are some what treated like an archaeology site. Overall, I think its a pretty good show and I was sad to see it end. I think that it was also a TV show where viewers could also learn archaeology/ anthropology terms. It is definitely worth the watch.
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Zack:
Anthropologist must possess an ability to understand and adapt to unfamiliar cultures. Almost every culture will be different from one another. One culture may worship a specific animal while another sees that same animal as vermin. If an anthropologist were to disrespect the worshipped animal while in the area where it’s worshipped, then they could face many problems with the locals. The locals would in that area would find it unethical. However, if they did the same in a culture that doesn’t worship said animal, then there would probably be little to no backlash. That doesn’t mean you should go around insulting animals if everyone’s ok with it. The point is that the locals of wherever the anthropologists is working may not be as keen to share information or assist in any other way. If the anthropologist was relying to get the locals help with whatever task they were doing, then now they either have no way to continue working or would have to spend time to find an alternative method.
It’s not going to be problems with the locals all the time. If an anthropologist can understand the culture they are in and respects the customs of the area, then it may help them understand their work better. For example, let’s say that an anthropologist finds some human remains and the remains are divided up. They are all placed in a very specific pattern. Now the anthropologist has a small dilemma. The customs of his current location are that bodies are to be handled in a very unusual manner. He doesn’t quite understand the entire process, but members of his team do understand the process because they are from that area. The anthropologist decides to handle the body himself, without consulting the locals or the members of his team that know the process. In doing so, he ruins the information that he could have gotten from the body and it’s resting place. If he had handled it correctly, then he might have gotten a more accurate history of that body.
That was a long example, but the point is that if you know the customs of an area and respect them, the chances are you’ll be able to do a better job. I highly doubt that a trained anthropologist will run into problems quite as severe as these. It doesn’t change the fact that if one can understand a culture that has different values than their own and respects them, then their work will be much more accurate and easier to obtain.
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