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DEVRY BSOP334 final exam

Page 1

Question 1.1. (TCO 1) Define product package. (Points : 5)

The exterior wrapping

The shipping container

A combination of goods and services

Goods in a manufacturing organization

Customer relations in a service organization

Question 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 demand

Determining safety stock

Ordering perishable items

Determining fixed interval order quantities

Determining fixed order quantities

Question 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.



a Gantt chart.

Question 6.6. (TCO 2) The process of identifying parent items in MRP is called (Points : 5)



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 schedule

Bill of materials

Inventory records

Assembly-time chart

Net-requirements chart

Question 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 facility

Incoming shipments of goods or materials

Outgoing shipments of goods or materials

Customer selection

Returned goods processing

Question 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 only

I and II only

II, III, and IV

I, II, and IV

IV only

Question 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.


the Internet.


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)





None of these

Question 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)





None of these

Question 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)


Group of machines



All of the above

Question 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 containers

3 containers

5 containers

2 containers

Page 2

Page 2

Question 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.















(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 BOM

Lead Time


Deluxe Easter Basket

1 week


Dark Chocolate Truffles (2 per)

2 weeks


Carved Chocolate Eggs (4 per)

1 week


Each 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.





Crew 1












(Points : 30)

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