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DeVry BSOP 334 Final Exam

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1.(TCO 1) Which of the following functions involves budgeting, analysis of
investment proposals, and provision of funds?(Points : 5)
Internal audit
Question 2.2.(TCO 1) Transformation includes all of the following, except(Points :
Question 3.3.(TCO 1) Which of the following is providing new opportunities for
productivity improvements?(Points : 5)
Pollution control
Total quality management

Supply chain management

Competition from foreign manufacturers
Technological change
Question 4.4.(TCOs 3 & 6) In an effort to reduce inventory, which of the following
interactions with vendors would potentially be helpful?(Points : 5)
Reducing lead times
Increasing safety stock
Less frequent purchases
Larger batch quantities
Longer order intervals
Question 5.5.(TCOs 3 & 6) Which of the following costs related to order size is
nonlinear?(Points : 5)
Question 6.6.(TCO 2) Which of the following is a computer-based information
system designed to handle ordering and scheduling of dependent-demand
inventories?(Points : 5)

Question 7.7.(TCO 2) Net material requirements can be described as(Points : 5)

Question 8.8.(TCO 2) When an MRP system is periodically updated to account for

all changes that have occurred within a given time interval, the process is
called(Points : 5)

Question 9.9.(TCOs 4, 5, & 6) How does a net-change system work?(Points : 5)

Question 10.10.(TCOs 4, 5, & 6) The MRP approach that is used for components
or subassemblies to compensate for variations in lead times is called(Points : 5)

Question 11.11.(TCOs 4, 5, & 6) A lead time service level of 90 percent implies

which of the following?(Points : 5)

Question 12.12.(TCOs 5, 7, & 9) The dynamic store of information on the status of

each item by time period (e.g., scheduled receipts, lead time, lot size), which is an
input to the MRP, is the(Points : 5)

Question 13.13.(TCOs 5, 7, & 9) What will be the quantity of the first planned
receipt if net requirements for component J are as follows: 60 units in Week 2, 40
units in Week 3, and 60 units in Week 5?A fixed-period, two-period lot-sizing
method is used.(Points : 5)

Question 14.14.(TCO 11, 12, 13, & 14) Given a product mix, scheduling difficulties,
quality factors, and so on, the maximum expected output is(Points : 5)

Question 15.15.(TCOs 11, 12, 13, & 14) Given the following information, calculate
the efficiency.
Effective capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day(Points : 5)

Question 16.16.(TCOs 10, 15, & 16) In an assignment method problem, it takes
Abe 3 hours to build a birdhouse and 4 hours for a doghouse, while Betty takes 4
hours for a birdhouse and 3 hours for a doghouse. What is the reduced cost (in
hours) of assigning Abe to build the doghouse?(Points : 5)

Question 17.17.(TCOs 10, 15, & 16) The matrix below shows relative costs for
various job-machine combinations. Which set of pairs constitutes the minimum
cost solution using the assignment method?

Job 1




(Points : 5)

1.(TCO 1) A company has found that introducing one additional worker enables a
process improvement that reduces processing time for each unit so that output is
increased by 25% with less material. Under the old process, five workers could produce
60 units per hour. Labor costs are $12/hour, and material input was previously $16/unit.
For the new process, material is now $10/unit. Overhead is charged at 1.6 times direct
labor cost. Finished units sell for $31 each. What increase in productivity is associated
with the process improvement?(Points : 30)

2.(TCOs 3 & 6) If instantaneous replenishment is assumed when given the same

demand, setup/ordering costs, and carrying costs, then the EOQ calculated using

incremental replenishment will be _____.

Illustrate using a numeric example.(Points : 30)

What is the optimal production size?

3.(TCO 2) For the product tree below, how many Cs are needed if 17 Ps are needed
and on-hand inventory consists of 10 As, 15 Bs, 20 Cs, 12 Ms, and 5 Ns? Show your

(Points : 30)

4.(TCOs 4, 5, & 6) Given the tree below, develop a material requirements plan for enditem P and its components. Assume that all lead times are one week and that lot-for-lot
ordering is used, except for Item F, which is ordered in multiples of 400 units.

6.(TCOs 11, 12, 13, & 14) A small business owner is contemplating the addition of
another product line. Capacity increases, and equipment will result in an increase in
annual fixed costs of $50,000. Variable costs will be $25 per unit. What unit selling price
must the owner obtain to break even on a volume of 2,500 units a year?

B) Because of market conditions, the owner feels a revenue of $47 is preferred to the
value determined in part A. What volume of output will be required to achieve a profit of
$16,000 using this revenue?(Points : 30)
5.(TCOs 5, 7, & 9) Explain the advantages and disadvantages of frequent deliveries of
small shipments.(Points : 25)

7.(TCOs 10, 15,& 16) Compare and contrast kanban and CONWIP.(Points : 20)

8.(TCOs 8 & 9) MPS planners use what is referred to as time fences? What are they,
and why are they used?(Points : 20)

DeVry BSOP 334 Final Exam

Click on the link below for the solution: