Download Solution Set 7 07/01/2016 File

Operations and Production Management
MGMT 405
Answer set 7
MGMT 405 Operations and Production Management
Answer set 7
(Reference chapters 15– William J. Stevenson-2007, ninth edition)
Multiple Choice Questions
Choose the one alternative that best completes the statement or answers the question.
1) ‘‘Survival of the Greek army depended not only on its discipline, training, and
morale but also on its supply chain’’ said by
A) Clerchus
B) Alexander
C) Napoleon
D) Nelson
Ans: A
2) __________ is a term that describes how organizations (suppliers, manufacturers,
distributors, and customers) are linked together.
A) Logistics
B) Supply chain
C) Typical Supply chain
D) Typical Manufacturing Supply Chain
Ans: B
3) Which of the following is not one of the Trends in Supply Chain Management?
A) Integrating IT
B) Managing risks
C) Greening the supply chain
D) Operations
Ans: D
© 2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed.
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Operations and Production Management
MGMT 405
Answer set 7
4) The most important concept of Global Supply Chain is:
A) young educated people
B) Labor
C) outsourcing
D) material cost
Ans: C
5) Which of the following is not one of the reasons to outsourcing?
A) Organizationally-driven
B) Revenue-driven
C) Cost-driven
D) Banking-driven
Ans: D
Problems
1. Determine shipping alternative, one day or four days when holding cost is $2000
with one day shipping cost is $50 and three day shipping cost is
a) $35
b) $30
Answer:
=$2000 per year
with one day shipping, time saving will be 3 days
IHC=2000(3)/365=$ 16.44
a) $50-$35=$15 cost saving is less than incremental cost $16.44
b) $50- $30=$20 cost saving exceeds incremental cost $16.44
© 2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed.
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Operations and Production Management
MGMT 405
Answer set 7
2. A restaurant chain purchases ingredients from four different food suppliers.
The company wants to construct a new central distribution center to process and
package the ingredients it uses in its menu items before shipping them to their
various restaurants. The suppliers transport the food items in 40-foot tractortrailer trucks. The coordinates of the four suppliers and the annual number of
truckloads that will be transported to the distribution center are as follows:
Coordinates
Supplier
x
y
Annual
Truckloads
A
200
200
65
B
100
500
120
C
250
600
90
D
500
300
75
(a) Determine facility location for the system
(b) Calculate individual distance for each supplier
(c) Compute the total distance for the new locations that minimizes the total
miles from the suppliers.
(d) Show the figures calculated on a graph.
© 2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed.
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Operations and Production Management
MGMT 405
Answer set 7
Ans:
x
y
t
200
200
65
100
250
500
242.85
500
600
300
427.14
120
90
75
Cx
Cy
242.8571
427.1429
s1
s2
s3
s4
231.1465
160.358
173.0078
286.8636
DT
71352.96
© 2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed.
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Operations and Production Management
d)
MGMT 405
Answer set 7
Food Supplier
700
600
S3
500
S2
FL
400
300
S4
200
S1
100
0
0
100
200
300
400
500
600
© 2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed.
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