BUSI 411 Exam 4 - Question and Answers (VERIFIED)

1. The Operations Manager for Shadyside Savings & Loan orders cash from her home office for her very popular "BIG BUCKS" automated teller machine, which only dispenses $100 bills. She estimates that this machine dispenses an average of 12,500 bills per month, and that carrying a bill in inventory costs 10 percent of its value annually. She knows that each order for these bills costs $300 for clerical and armored car delivery costs, and that order lead time is six days. Assuming a 30-day month, if she were to order 6,000 bills at a time, what would be the average monthly total costs, EXCLUDING the value of the bills? 2. The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. What is the economic order quantity for resin? 3. Which of the following is least likely to be included in order costs? 4. A cycle count program will usually require that A items be counted: 5. The Operations Manager for Shadyside Savings & Loan orders cash from her home office for her very popular "BIG BUCKS" automated teller machine, which only dispenses $100 bills. She estimates that this machine dispenses an average of 12,500 bills per month, and that carrying a bill in inventory costs 10 percent of its value annually. She knows that each order for these bills costs $300 for clerical and armored car delivery costs, and that order lead time is six days. Assuming a 30-day month, what is the economic order quantity? 6. A lean-systems method of asking questions about a process is the __________ approach. 7. When lean is used in the context of services, which of the following is most often the focus? 8. Although lean systems tend to produce standardized product lines, to provide production variety without accompanying waste, lean producers often use __________ in __________. 9. Which of the following is not something commonly found in lean systems? 10. Managers considering an operations strategy reflecting the lean philosophy of operations should recognize that lean: 11. A factor that makes it desirable for business organizations to actively manage their supply chains is: 12. Which of the following is not an application of E-business? 13. Which of the following is a barrier to the integration of separate organizations in the supply chain? 14. RFID chips: 15. Which of the following is least likely to be a key consideration when a company chooses a supplier? 16. The priority rule which will sequence jobs in the order they are received is: 17. Which sequencing rule is designed specifically to minimize job tardiness? 18. Scheduled due dates are the result of: 19. The owner/operator of the local franchise of Handyman, Inc., has four jobs to do today, shown in the order they were received: 20. The following matrix shows relative costs for various job-machine combinations. Assume there must be one-to-one matching between jobs and machines. Which set of pairs constitutes the minimum-cost solution using the assignment method? 21. Profit margins tend to be inversely related to inventory turns. 22. Using third-party logistics involves using your organization's logistics function to ship to customers that are not officially part of the supply chain. 23. Centralized or decentralized purchasing is directly related to the size of an organization. 24. The assignment model seeks an optimum matching of tasks and resources. 25. Priority rules are widely used to sequence jobs in high-volume systems.