Rinconada, Reynalyn B.

ST.
PAUL UNIVERSITY SURIGAO

Surigao City
Final Examination
MGT 104 – MANAGEMENT SCIENCE
Block 1-AY 2020-2021
RINCONADA, REYNALYN
Name: ___________________________ BSA-2
Crs. & Year: _____________ Score_________________
I. Select the keyword that fits the answer and encircle the letter.
1. The path represented by the most time-consuming sequence of jobs.

A. Critical Path B. Critical Jobs C. CPM D. PERT
2. A system that only the server or the customer is human beings.

A. Human B. Automatic C. Semi-automatic D. Queuing
3. Those job whose completion must precede the start of some other job.
A. Predecessor B. Successor C. Immediate predecessor D. Immediate Successor
4. It is represented by limited input population.

A. Infinite population B. Finite population C. Controllable D. Uncontrollable
5. A customer of this type when he secretly collaborates with someone or with his peers to give favor to
him by transacting in behalf of others in order to receive the service more quickly.
A. Balking B. Jockeying C. Reneging D. Collusion
6. This strategy is applied for customers’ convenience and safety.

A. Priority Scheme B. Pre-emptive Priority System C. Reservation D. First Come First Serve
7. Shoppers who have reached a certain huge amount in shopping for a certain period.
A. Express Lane B. Senior citizens’ counter C. Lane for VIP D. Reneging
8. The cost of lost customer orders, when demand exceeds the supply.
A. Carrying Cost B. Ordering Cost C. Stockout Cost D. Cost per unit
9. Allowable slippage for a path

A. CPM B. PERT C. Slack D. Node
10. A customer is under this type when he sees that the queue is too long and upon seeing the length
refuse to join the waiting line.
11. A customer moves from one queue to another in his intention to reduce his waiting time.
12. Is the cost that is dependent on the size of the inventory. This cost is proportional to the amount of
inventory and the time over which it is held.
A. Carrying Costs B. Total Costs C. Inventory D. Ordering Costs
13. Jobs that can be performed only after some other job has been completed.
A. Predecessor B. Successor C. Immediate predecessor D. Immediate Successor
14. Is a sequence of activities that leads from the starting node to the finishing node.
A. CPM B. PERT C. Slack D. Path
15. This strategy is applied to avoid overcrowding situation most especially if the establishment has limited space.
16. Management has to consider the design operating system to cater the needs of its customers.
A. Departures B. Service Process C. Degree of Patience D. Queue Discipline
17. Refers to the order in which customers in the queue are served.
A. Departures B. Service Process C. Degree of Patience D. Queue Discipline
18. It is represented by an individual customer entering the queuing system.

A. Batch B. Single C. Controllable D. Uncontrollable
19. This is allowed for some unavoidable circumstances especially when the service facility become unavailable
or suddenly interrupted.
20. Is composed of the line of waiting customers or queue and the service facility.
A. Queuing System B. Waiting Line Management C. Calling Population D. Channel Model
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II. Discussion/Essay:
1. Briefly describe each of the costs associated with inventory
Inventory cost are all associated with ordering, holding and managing the inventory or stock
Of an operation or business.
2. In what kinds of situations is queuing analysis most appropriate?
Queuing analysis is a technique that is utilized to understand the features of waiting for the service.
Queuing analysis includes waiting in a line to be served, waiting for the arrival of something, and so on.
III. Problem Solving (Show your solution)
1. Amo Ting owns and manages a chili dog and soft drink store near the campus. Although Amo can
service 30 customers per hour on the average (µ), he only gets 20 customers per hour ( ƛ). Because
Amo could wait on 50% more customers than actually visit his home, it doesn’t make sense to him
that he should have any waiting lines.
a. What is the average number in the system?
ƛ 20
Pw = ¿ = 0.66 or 66 %
µ 30
b. What is the average waiting time in the system?
ƛ² 20
2
400
Lq = = = = 1.33 customers
µ( µ− ƛ) 30 (30−20) 300
c. What is the average number in the waiting line?
ƛ 20
Ls = = = 2 customers
ƛ−µ 20−30
d. What is the average waiting time in line?
ƛ 20 20 0.6 hours∨3.6 minutes
Wq =
µ( µ−µ)
= 30 ( 30−20 )
=
300 (00.6 x 60 minutes=3.6 minutes)
e. What is the utilization of the service attendant?
ƛ 20
Pw =
µ
= 20
= 0.66 or 66%
2. Supersonic Company uses P 9000,000 annually of a particular ingredient in its assembly department.
The purchasing manager estimates the ordering cost at P600 and the annual storage cost of 22%.
a. Determine the optimal number of orders per year.

AC
Nd =
√ 2P
900,000
Nd =
√ 2(600)
198,000
Nd =
Nd=
√√ 1,200
165
Nd= 13 Order per year
b. Determine the number of days’ supply per order.
2p
Nd =365
√ AC
2(600)
Nd =365
√ 900,000 (0.22)
1,200
Nd =365
√ 198,000
Nd=28 days per supply
c. Determine the optimal number of peso per order.
2 AP
Np =
√ C
2(900,000)(600)
Np = P 70,065 per order
Np =
√ .22
1,080,000,000
Np=
Np =
√ .22
√ 4,909,090,909
3. The SPUS high school students are about to join the Annual Quiz to be held at the PICC. The
quiz bee consists of our subjects such as Math, Science, English and Physics. The table below
shows their errors per subject in a qualifying round. Determine who among the students will
represent in the quiz bee.
Student 1 Student 2 Student 3 Student 4

Math 5 3 5 2
Science 1 6 3 4
English 4 2 3 1
Physics 2 3 4 1
Step 1

Math 3 1 3 0
Science 0 5 2 3
English 3 1 2 0
Physics 1 2 3 0
Step 2

Math 3 0 1 0
Science 0 4 0 3
English 3 0 0 0
Physics 1 1 1 0
Since the number of lines are equal to the number of rows and columns, then it is already optimal
Assignment the subject to a particular student:
Math - Student 2 and Student 4

Science - Student 1 and Student 3
English - Student 2, Student 3 and Student 4
Physics - Student 4
Final Decision:
Students Number of Errors
Math Student 2 3
Science Student 1 1
English Student 3 3
Physics Student 4 1
Total 8
4. Customers arrive at a bakery at an average rate of 18 per hour on weekday mornings. The arrival distribution
can be described by a Poisson distribution with a mean of 18. Each clerk can serve a customer in an average
of four minutes, this time can be described by an exponential distribution with a mean of 4.0 minutes.
a. What are the arrival and service rates?
Arrival rate ƛ = 18 customers/hr

Service rate µ = 60/4 = 15 customers/hr
b. Compute the average number of customers being served at any time.
ƛ
r ¿ = average number of customers being served
µ
18
r= = 1.2 customers
15
c. Suppose it has been determined that the average number of customers waiting in line is 3.6.
Compute the average number of customers in the system.
Ls = Lq + r = 3.6 +1.2 = 3.8 customers

Lq 3.6
Wq = = = 0.20hrs
ƛ 18
1 1
Ws = Wq + = 0.20 + = 0.267hrs
µ 15
d. Determine the system utilization for M =2, 3, and 4 servers.
ƛ
P=
Mµ
18
M=2,p= = 0.60
2( 15)
18
M=3,p= = 0.40
3 (15)
18
M= 4 , p = = 0.30
4( 15)
5. Milling and Luming Contractors need three carpenters to be assigned to three projects.
Determine the best allocation of each carpenter.
Carpenters A B C
1 80 90 54
2 54 108 30
3 46 104 48
Step 1. Select the smallest among the given rows.
Carpenter 1=54; 80-54=26, 90-54=
Carpenter 2=30; 54-30=24, 108-30=78
Carpenter 3=46; 46-46=0, 104-54=58, 48-46=2
Carpenters A B C
1 26 36 0
2 24 78 0
3 0 58 2
Step 2. Reduce each column by subtracting the smallest number in each column.
Carpenters A B C
1 26 0 0
2 24 42 0
3 0 22 2
Carpenter 1= can have project B and C

Carpenter 2= can have project C
Carpenter 3= can have project A
Final Decision:
Carpenters Project Cost

1 B 90
2 C 30
3 A 46
Total 166
6. The E and I Beverage Company has a beverage product that has a constant annual demand rate of 7,200
cases. A case of soft drinks costs E and I P 288.00. Ordering cost is P 200.00 per order and inventory
carrying cost is charged at 25% of the cost per unit. Calculate the following:
a. Economic order quantity

2 AO
EOQ =
√ CC
2(7,200)(200)
=
√ (0.25)(288)
2,880,000
=
√ 72
= 200
b. Annual ordering cost
D = 7,200
X = 200
F = 288
D
= (F)
X
7,200
= (288)
200
= 10,368
c. Annual carrying cost
X
= (C)
2
200
= (72)
2
= 7,200
d. Total annual inventory
7,200+7,200=14,400
e. Optimal number of orders per year
AC
=
√ 2P
(7,200)(25 %)
=
√ ( 2)(200)
1,800
=
√ 400
= 2.12 or 2
7. A project plan is as follows:
Activity Immediate Time (in weeks)

Predecessors
A None 2
B None 3
C A 3
D A 1
E B 2
F C 4
G D, E 1
a. Draw the network diagram for this project

b. Determine the critical path using CPM
c. Find the optimum completion time
8. A construction firm has received a contract to build a school. The project is to be planned and
scheduled with the use of the PERT. Thus far, the firm has described the necessary activities in fairly
board terms and has developed the following three time estimates for each, of the activities:
Activity Estimated times, months Computed te

10.20 1.5, 2.0, 4.0 _______
20.30 2.0, 3.0, 4.5 _______
20.40 0.5, 1.0, 1.5 _______
20.50 2.5, 4.0, 5.0 _______
30.70 4.0, 6.5, 7.0 _______
40.60 0, 0,0
50.60 0, 0, 0
60.70 1.0, 2.0, 2.5 _______
70.80 0.5, 1.0, 2.0 _______
70.90 2.5, 3.0, 3.5 _______
80.100 0, 0, 0
90.100 1.0, 2.0, 4.0 _______
100-110 6.0, 7.5, 8.0 _______
Required:
a. Construct a PERT network in which you show the events, the estimated activity times, and
the calculated average time for each activity.
b. If the earliest the project can be started is designed as date zero, what will be the early times
for the respective events? Show these times in the network.
c. 100If the target completion date for the project is 24 months from date zero, what will be the late
times for respective events? Show these times in the network.
d. Working with the early and late times, compute the events’ slack times. Use these values of
the slack time to determine the project’s critical path.
10 0 0.1 .0.1
20 2.3 2.2 0.1
30 5.4 5.3 0.1
40 3.3 11.5 -8.2
50 6.2 11.5 -5.3
60 6.2 11.5 -5.3
70 11.6 11.5 0.1
80 12.7 11.5 -4
90 14.6 14.5 0.1
100 16.8 16.7 0.1
110 24.1 24 0.1
“Mathematics may not teach us how to add happiness or how to minus sadness, but it does
teach one important thing…
Every problem has a solution”
Prepared by:
DR. ERLITA C. GUERRA, MBA, MPA

Instructor
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Rinconada, Reynalyn B.

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ST.

PAUL UNIVERSITY SURIGAO

1. The path represented by the most time-consuming sequence of jobs.

2. A system that only the server or the customer is human beings.

4. It is represented by limited input population.

6. This strategy is applied for customers’ convenience and safety.

9. Allowable slippage for a path

18. It is represented by an individual customer entering the queuing system.

1. Briefly describe each of the costs associated with inventory

2. In what kinds of situations is queuing analysis most appropriate?

III. Problem Solving (Show your solution)

a. Determine the optimal number of orders per year.

Nd= 13 Order per year

b. Determine the number of days’ supply per order.

Student 1 Student 2 Student 3 Student 4

Student 1 Student 2 Student 3 Student 4

Student 1 Student 2 Student 3 Student 4

Math - Student 2 and Student 4

Arrival rate ƛ = 18 customers/hr

Ls = Lq + r = 3.6 +1.2 = 3.8 customers

Step 1. Select the smallest among the given rows.

Carpenter 1=54; 80-54=26, 90-54=

Carpenter 2=30; 54-30=24, 108-30=78

Carpenter 3=46; 46-46=0, 104-54=58, 48-46=2

Carpenter 1= can have project B and C

Carpenters Project Cost

a. Economic order quantity

c. Annual carrying cost

d. Total annual inventory

e. Optimal number of orders per year

Activity Immediate Time (in weeks)

a. Draw the network diagram for this project

Activity Estimated times, months Computed te

DR. ERLITA C. GUERRA, MBA, MPA

Powered by TCPDF (www.tcpdf.org)

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