Managing Operations and Services (Questions & Answers)

Exam Guidelines
1. This exam consist of nine questions adding up to 100 points. Students are required to
answer all the nine questions.
2. Students must show the work. Failure to show the work will result in zero points. As
indicated in syllabus, students can handwrite and scan it and post the exam to canvas. But,
please make sure that your handwriting is readable.
3. Plagiarism will not be tolerated. Any instances of plagiarism will dealt as specified in
syllabus.
Question 1:
The weekly output of a production process is shown below, together with data for labor and
material inputs. The standard inventory value of the output is $100 per unit. Overhead is charged
weekly at the rate of $1,100 plus 1.25 times direct labor cost. Assume a 40-hour week and an
hourly wage of $10. Material cost is $4 per running foot. What is the average multifactor
productivity for this process for each week? (10 points)

 
Question 2:
Why are operations managers faced with ethical and social challenges? What are some of the
ethical and social challenges faced by operations managers? (10 points)
 
Question 3:
Identify and explain the four basic global operations strategies. Give an example of each
strategy. (10 points)
Question 4:
A company is choosing an outside firm to provide its payroll services. It has chosen four
comparative categories of interest: client reviews, financial condition, IT capabilities, and
government stability. These categories have been assigned weights of 50%, 10%, 10%, and 30%,
respectively. Three potential providers were scored on each of those factors (see table below) using
a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible. Using the
factor-rating method, which provider should be chosen? (10 points)

 
Question 5:
A network consists of the following list. Times are given in weeks. (20 points)

a. Draw the network diagram.
b. Which activities form the critical path?
c. How much slack exists at each activities?
d. What is the duration of the critical path?
Question 6:
Dell computers sells laptops. Table 1 presents the 12 month sales for the year 2017 (10 points).

Forecast Jan 2018 sales using: (1) five period moving average; (2) A four period weighted
moving average with weights 0.3 for Dec, 0.3 for Nov, 0.2 for Oct, 0.2 for Sep; (3) Exponential
smoothing with smoothing constant 0.3, assuming a Aug forecast 15.
 
Question 7:
JDI, Inc. is trying to decide whether to make or buy a part (#J-45FPT). Purchasing the part would
cost $1.50 each. If they design and produce it themselves, it will result in a per unit cost of $0.75.
However, the design investment would be $50,000. Further, they realize that for this type of part,
there is a 30% chance that the part will need to be redesigned at an additional cost of $50,000.
Regardless of whether they make or buy the part, JDI will need 100,000 of these parts. Using
decision trees analysis and EMV, what should JDI do? Show the decision tree (10 points).
Question 8:
Identify each of the purposes of project scheduling. (10 points)
Question 9:
Describe the European Union Emissions Trading System to combat climate change. (10 Points)