MBA 626- Fall 2012 exam 1- What is the earliest completion time for a project with this information about activities? Activity Optimistic Time Most Likely Time Pessimistic Time A 3 4 5 -- B 5 7 9 -- C 2 3 10 A D 2 5 8 B E 1 7 7 B F 3 7 9 C, D G 7 8 9 D, E H 4 6 10 F A) Less than or equal to 22 days B) 23 days C) 24 days D) 25 days or more 2- The following four jobs must each be processed on two machines starting with Machine A and then going to Machine B. The following processing times are available (in hours): Job Processing Time Machine A Processing Time Machine B A 1 5 B 8 3 C 3 9 D 7 8 What is the minimum makespan for this group of jobs? A) Less than or equal to 23 hours B) More than 23 hours but less than or equal to 25 hours C) More than 25 hours but less than or equal to 27 hours D) More than 27 hours Work center Q45 has four jobs that just arrived (the start of Day 1) to be processed, as shown in the following table. Assume the shop works eight hours per day. Using the information in the following table and the critical ratio rule, what is the flow time of job A? Job Processing Time at Workstation (hours) Time Remaining to Due Date (days) Work Time Remaining Including Workstation (days) Remaining Number of Operations A 12 8 3 3 B 9 14 8 2 C 8 11 10 5 D 16 6 6 2 A) fewer than or equal to 10 hours B) greater than 10 hours but fewer than or equal to 20 hours C) greater than 20 hours but fewer than or equal to 30 hours D) greater than 30 hours 4- The demand forecast for the next four periods is 80, 110, 120, and 145 units respectively. The plant has a regular capacity of 100 units per period, an overtime capacity of 10 units per period, and a subcontractor capacity of 5 units per period. Costs per unit are: Regular production: $5 Overtime production: $8 Subcontracting: $9 Holding cost per unit per period: $3 No shortages are allowed and the company has 5 units in inventory at the start of the planning period. How many units should be produced using overtime? A) Less than 30 B) 30 to 35 C) More than 35 but less than 40 D) 40 5- The following MPS is available: Lot size: 80 Lead time: 1 Weeks Quantity on hand 45 1 2 3 4 5 6 7 8 Forecast 35 35 35 35 30 30 30 30 Customer orders (booked) 40 35 45 50 10 5 Projected on-hand inventory MPS quantity MPS start Available-to-promise inv. Available-to-promise units in week 4 are: A) Less than or equal to 50 B) More than 50 but less than or equal to 60 C) More than 60 but less than or equal to 70 D) More than 70 6- Using the following BOM and on-hand inventory record, how many additionalunits of “J” are required to make 10 end items? On-Hand Inventory Record: A 15 G 15 B 11 H 45 C 2 I 122 D 8 J 56 E 19 K 282 F 34 A) Less than or equal to 500 B) More than 500 but less than or equal to 600 C) More than 600 but less than or equal to 700 D) More than 700 7- Tiger Toys is a retailer in Omaha, Nebraska. Business is season ...

1. MBA 626- Fall 2012 exam
1- What is the earliest completion time for a project with this
information about activities?
Activity
Optimistic Time
Most Likely Time
Pessimistic Time
A
3
4
5
--
B
5
7
9
--
C
2
3
10
A
D
2
5
8
B
E
1
7
7
B
F

2. 3
7
9
C, D
G
7
8
9
D, E
H
4
6
10
F
A) Less than or equal to 22 days
B) 23 days
C) 24 days
D) 25 days or more
2- The following four jobs must each be processed on two
machines starting with Machine A and then going to Machine B.
The following processing times are available (in hours):
Job
Processing Time
Machine A
Processing Time
Machine B
A
1
5
B
8
3
C
3

3. 9
D
7
8
What is the minimum makespan for this group of jobs?
A) Less than or equal to 23 hours
B) More than 23 hours but less than or equal to 25 hours
C) More than 25 hours but less than or equal to 27 hours
D) More than 27 hours
Work center Q45 has four jobs that just arrived (the start of
Day 1) to be processed, as shown in the following table.
Assume the shop works eight hours per day. Using the
information in the following table and the critical ratio rule,
what is the flow time of job A?
Job
Processing Time at Workstation (hours)
Time Remaining to Due Date (days)
Work Time Remaining Including Workstation (days)
Remaining Number of Operations
A
12
8
3
3
B
9
14
8
2
C
8
11

4. 10
5
D
16
6
6
2
A) fewer than or equal to 10 hours
B) greater than 10 hours but fewer than or equal to 20 hours
C) greater than 20 hours but fewer than or equal to 30 hours
D) greater than 30 hours
4- The demand forecast for the next four periods is 80, 110,
120, and 145 units respectively. The plant has a regular capacity
of 100 units per period, an overtime capacity of 10 units per
period, and a subcontractor capacity of 5 units per period. Costs
per unit are:
Regular production: $5
Overtime production: $8
Subcontracting: $9
Holding cost per unit per period: $3
No shortages are allowed and the company has 5 units in
inventory at the start of the planning period. How many units
should be produced using overtime?
A) Less than 30
B) 30 to 35
C) More than 35 but less than 40
D) 40
5- The following MPS is available:
Lot size: 80

5. Lead time: 1
Weeks
Quantity on hand
45
1
2
3
4
5
6
7
8
Forecast
35
35
35

6. 35
30
30
30
30
Customer orders (booked)
40
35
45
50
10
5
Projected on-hand inventory
MPS quantity
MPS start

7. Available-to-promise inv.
Available-to-promise units in week 4 are:
A) Less than or equal to 50
B) More than 50 but less than or equal to 60
C) More than 60 but less than or equal to 70
D) More than 70
6- Using the following BOM and on-hand inventory record, how
many additionalunits of “J” are required to make 10 end items?
On-Hand Inventory Record:
A
15
G
15
B
11

8. H
45
C
2
I
122
D
8
J
56
E
19
K
282
F
34
A) Less than or equal to 500
B) More than 500 but less than or equal to 600
C) More than 600 but less than or equal to 700
D) More than 700
7- Tiger Toys is a retailer in Omaha, Nebraska. Business is
seasonal for Tiger Toys. The following table shows labor
requirements over a typical six-month period (expressed as
number of employees). Undertime is paid and we also know the
following rates:
Wages per month per worker:
$800
Hiring cost per worker
$300
Layoff cost per worker
$200
Overtime rate

9. 150% of the regular rate
Overtime is allowed up to 20% of the regular time
Month
1
2
3
4
5
6
Total
Forecasted demand
6
7
12
13
8
5
Workforce level
Undertime

10. Overtime
Productive time
Hires
Layoffs
Costs

11. Productive time
Undertime
Overtime
Hires

12. Layoffs
The total cost of a level strategy which pays overtime and also
minimizes the costs is:
A) Less than or equal to $57,000
B) More than $57,000 but less than or equal to $58,000
C) More than $58,000 but less than or equal to $59,000
D) More than $59,000
8- The Burdell Wheel and Tire Company assembles tires to
wheel rims for use on cars during manufacture of vehicles by
the automotive industry. Burdell wants to locate a low-cost
supplier for the tires he uses in his assembly operation. The
supplier will be selected based on total annual cost to supply
Burdell's needs. Burdell's annual requirements are for 25,000
tires, and the company operates 250 days a year. The following
data are available for two suppliers being considered.
SUPPLIER
SHIPPING QUANTITY PER SHIPMENT
ANNUAL
SHIPPING COSTS
PRICE / TIRE (p)
INVENTORY HOLDING COSTS (H)
LEAD TIME (DAYS)
ADMIN. COSTS

13. LEXINGTON TIRE
1,500
$18,000
$30
$6.00
6
$15,000
IRMO
AUTO
1,200
$25,000
$29
$6.80
5
$18,000
What are the annual inventory costs if the lower inventory cost
supplier is selected?
A) Less than or equal to $7,000
B) More than $7,000 but less than or equal to $7,500
C) More than $7,500 but less than or equal to $8,000
D) More than $8,000
9- A store has collected the following information on one of its
products:
Demand = 15,000 units/year
Standard deviation of weekly demand = 30 units
Ordering costs = $30/order
Holding costs = $4/unit/year
Cycle-service level = 95% (z for 95% = 1.65)
Lead-time = 2 weeks
Number of weeks per year = 50 weeks
If the firm uses the continuous review system to control the
inventory, what would be the reorder point?

14. A) Less than or equal to 629
B) More than 629 but less than or equal to 669
C) More than 669 but less than or equal to 709
D) More than 709
10- As an inventory manager, you must decide on the order
quantity for an item. Its annual demand is 3000 units. Ordering
cost is $80 each time an order is placed, and the holding cost is
30 percent of the per-unit price. Your supplier provided the
following price schedule.
Price per Unit
Order Quantity
$6.00
000—299
$5.00
300—699
$4.00
700 and more
What ordering-quantity policy do you recommend?
A) fewer than or equal to 200 units
B) greater than 200 units but fewer than or equal to 600
C) greater than 600 units but fewer than or equal to 700 units
D) more than 700 units
End Item
A(2)B(3)C(4)
D(2)E(3)F(5)G(10)H(8)I(12)
K(2)K(5)J(3)