Operations Management Mid Term

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LGT3105 Midterm Exam Semester 1, 2009-10

Oct 15, 2009 This midterm exam has eight pages in total and contains six questions for a total of 100 points. You may round off your numerical answers to two decimal places. Please try your best to work out as many as you can. Good luck!

Unless you cannot honestly do so, you must sign the honor statement below. Failure to sign it will be interpreted as acknowledgement of a violation.

“I have neither given nor received assistance on this exam in any manner, that is, verbally, showing, or passing calculations or results, and so on.”

(Signed)_____________________________________________

1

Question Set 1 (19 points)

a. For each of (i)-(iv) below, circle one answer from the choices available. (i) Consider a three-stage system in which the second machine has a utilization of 80%. No inventory will build up in front of that machine. (2 points) True False

(ii) In a process, the machine with the least amount of inventory in front of it is not the bottleneck. (2 points) True False

(iii) Assume a fixed cost for a process of $15,000. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $25. Which of the following is the number of units that has to be produced and sold to break-even? (2 points) A. 500 units B. 667 units C. 790 units D. 1,000 units Assembly of a Chrysler Jeep requires 200 different robotic machines working in series. There currently is only one windshield placement robot. Chrysler is considering adding a second, identical windshield placement robot to the Jeep assembly line. (iv) Capacity of the system would: (2 points) a. Increase. b. Decrease c. Stay the same. d. Cannot determine (v) Average Theoretical Flow Time would: (2 points) a. Increase. b. Decrease. c. Stay the same. d. Cannot determine b. Fill in the inputs, outputs, and major transformation components...