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PNW - BUSM 360 - Study Guide - Midterm

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BUSM 360 online study guide (modified) Use the information below to answer number 1-5 A company has decided to design a product layout for a new product. ThDon't forget about the age old question of behaviors followed by favorable consequences

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e company plans on using their production line for 10 hours a day in order to meet their projected demand of 680 units per day. The tasks necessary to produce this product: Task Time(secs) Immediate Predecessor u 40 none v 40 u w 8 u x 14 w y 58 x z 40 v,y 1. Without regard to demand, what is the minimum possible cycle time (in seconds) for this situation? 2. If the company desires that output rate equal demand, what is the desired cycle time (in seconds)? 3. If the company desires that output rate equal demand, what is the minimum number of workstations needed? 4. If the company desires that output rate equal demand, what would be the efficiency of this line with the minimum number of workstations? 5. If the company desires that output rate equal demand, what is the last task performed at the second workstation in the balance, which uses the minimum number of workstations? Use the information below to answer questions 6-10 A production planner for Hot Coffee Corp. makes two coffee blends: Blonde (B) and Dark (D). Two of the planner’s resources are constrained: Columbia beans, that which he can get at most 200 pounds (3200 ounces) each week; and Dominican beans, of which he can get at the most 300 pounds (4800 ounces) per week. Each pound of Blonde blend coffee requires 10 ounces of Columbian beans and 2 ounces of Dark beans, while a pound of Dark blend coffee uses 6 ounces of each type of bean. Profits for the Blonde blend are $1.00 per pound, and profits for the Dark blend are $2.00 per pound. 6. What is the objective function? 7. What is the Blonde bean constraint? 8. What is not a feasible production combination? 9. What are the optimal weekly profits? 10. For the production combinations of 0 Blonde and 200 Dark, which resource is “slack” (not used fully)? Use the below information to answer numbers 11-12 A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 300 hours and a standard deviation of 10 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results: Sample Service Life (Hours) 1 500 495 505 500 2 505 515 470 460 3 480 525 460 470 11. What is the mean of the sampling distribution of sample means when service life is in control? 12. If the designer uses upper and lower control limits of 520 and 480 hours, on what sample(s) (if any) does service life appear to be out of control? Use the information below to answer questions 13-14 The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculties teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results: Instructor Number of Failures Prof. A 13 Prof. B 0 Prof. C 11 Prof. D 16 13. What are the .95 (5% risk of Type I error) upper and lower limits for the p chart? 14. Using .95 control limits (5% risk of Type I error), which instructor(s), if any, should he conclude is (are) out of control? 15. The specification for a product are 6mm + or – 0.1 mm. The process is known to operate at a mean of 6.05 with a standard deviation of 0.01 mm. What is the Cpk for this process? Use the information below to answer 16-20 The manager of the Fast Stop Corner Convenience Store (which is open 24/7) sells two cases of Bud Light Beer each day. Order cost are $4.00 per order, and Bud light beer cost $0.60 per six-pack (each case of Bud Light beer contains four six-packs). Orders arrive four days from the time they are placed. Daily holding costs are equal to six percent of the cost of the beer. 16. At what point should he reorder the Beer? 17. If he were to order 12 cases of Bud Light beer at a time, what would be the length of an order cycle? 18. If he were to order 12 cases of Bud Light Beer at a time, what would be the average inventory level? 19. If he were to order 12 cases of Bud Light Beer at a time, what would be the daily total inventory costs excluding the cost of the beer? 20. What is the economic order quantity for Bud Light Beer?