[BADM 275] Mock Exam 1

A company wants to forecast demand using the weighted moving average. If the company uses two prior yearly sales values (i.e., year 2016 = 110 and year 2017 = 130), and we want to weight year 2016 at 10% and year 2017 at 90%, which of the following is the weighted moving average forecast for year 2018?

128

A company wants to forecast demand using the simple moving average. If the company uses four prior yearly sales values (i.e., year 2014 = 100, year 2015 = 120, year 2016 = 140, and year 2017 = 210), which of the following is the simple moving average forecast for year 2018?

142.5

Given a prior forecast demand value of 230, a related actual demand value of 250, and a smoothing constant alpha of 0.1, what is the exponential smoothing forecast value for the following period?

232

A company has actual unit demand for three consecutive years of 124, 126, and 135. The respective forecasts for the same three years are 120, 120, and 130. Which of the following is the resulting MAD value that can be computed from this data?

5

Which of these expressions is Little's Law? a. Inventory/Flow time = Throughput rate b. Inventory/Throughput Rate = Flow time c. Inventory = Throughput rate × Flow time d. All of the above

All of the above

A product requires two initial manufacturing steps, bending and welding. The next step is assembly. Finishing and packaging are done in the last step. Processing times are as indicated in the figure, and there are two resources at each step. There are 8 work-hours in a day. Bending = 8.5 mins; Welding = 8 mins; Assembly = 7.5 mins; Finish and Pack = 6.5 mins Please indicate: 1. The bottleneck 2. Throughput rate of the process 3. Throughput time of the process (assuming no waiting between steps) 4. Average inventory in the process based on Little's law

Bending has the largest cycle time at 4.25 mins The throughput rate of process is 112.9 The throughput time of process 8.5 + 8 + 7.5 + 6.5 = 30.5 minutes Average inventory in the process based on Little's law is 7.2 units

Consider the two-task process shown below and answer the questions that follow: Task 1 requires 5 minutes per unit. There are three workers working in parallel at Task 1. Task 2 requires 6 minutes per unit. There are four workers working in parallel at Task 2. a. What is the capacity of task 1? (In pieces per hour) b. What is the capacity of task 2? (In pieces per hour) c. What is the capacity of the process? (In pieces per hour)

Capacity of task 1 is 3/5 units per minute = 36 units per hour Capacity of task 2 is 4/6 units per minute = 40 units per hour Task 1 determines the capacity of the process, and so it is 36 units per hour

True / False: Low rates of capacity utilization in service organizations are never appropriate.

False

Which one of the following statements is more of a general characteristic of a service organization, as compared to a manufacturing organization? a. Output can be inventoried. b. Returns and repairs are easily possible. c. There is less customer contact. d. Good quality in the eyes of the customer is hard to specify.

Good quality in the eyes of the customer is hard to specify.

Which of the following statements about Little's Law is incorrect? a. Little's Law can be applied to both manufacturing and service operations. b. Little's Law relates the average number of things in the system to average throughput time and average flow rate. c. Little's Law applies when a system is in steady state. d. Little's Law applications require information about the standard deviation of the customer demand

Little's Law applications require information about the standard deviation of the customer demand

Which of the following forecasting methodologies is considered a qualitative forecasting technique?

Market Research

Which of the following are used to describe the degree of error? a. Weighted Moving Average b. Regression c. Moving average d. Mean absolute Deviation

Mean Absolute Deviation

Suppose that competitive priorities call for offering a wide variety of customized services. Which of the following process decisions would be more likely? a. More high-volume-producing machinery b. Less resource flexibility c. More customer involvement d. Less customization

More customer involvement

Which of the following is true about bottlenecks? a. A bottleneck will have the highest flow rate. b. A bottleneck will not determine the capacity of the process. c. A bottleneck will have the highest flow rate. d. None of these are true.

None of these are true

Choose the most accurate description in the context of operations and supply chain from the following list.

Order qualifiers is a screening criteria while order winner is a differentiating criteria.

Which of the following is not a characteristic that distinguishes services from goods?

Service jobs are unskilled

Which of the following forecasting methodologies is considered a time series forecasting technique?

Simple Moving Average

The exponential smoothing method requires which of the following data to forecast the future?

The most recent forecast

We consider a service facility with a single employee that serves the customers. This person takes on average 5 minutes to serve one customer. The arrival rate to the service facility is 6 customers per hour. What is the service rate? What is the average number of customers in the system? What is the average time spent by customers in the system? What is the fraction of time that an employee is idle?

The service rate m = 12 customers / hour (60 mins / 5 mins) Average queue length in the system Ls= 6 / (12 - 6) = 1 customer Average waiting time of customer in the system Ws = 1 / 6 = 0.17 hours x 60 mins = 10 minutes per customer The fraction of the time that the employee is idle = 1 - p (6/12) = 50% of the time.

True / False: "Supply Chain" is the flow of goods and services to transform inputs into outputs.

True

True / False: Central to the concept of operations strategy are the concepts of operations focus and trade-offs.

True

True / False: Services are defined and evaluated as a package of features that affect the five senses.

True

True / False: The basic notion of economies of scale is that as volume increases, the average cost per unit of output drops.

True

True / False: The process type of a project in services is unique for each customer.

True

True / False: The term "value" refers to the relationship between quality and the price paid by the consumer.

True