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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. 1 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. 2 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. 3 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. 4 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. 5