1. Business Department
FALL
FINAL EXAM/REVISION

2. Section A/Multiple Choice-Example
1) Which of the following part does not indicate the concept of project?
A) Time
B) Cost
C) specific objectives
Operations
2) Which of the following is not one of project tools?
A) Work breakdown structure
B) Network diagram
C) Gantt charts
D) Management

3. Section A/Multiple Choice-Example
3) Which of the following part cannot be defined as inventory?
final product
raw materials
supplies
Delivered parts
4) Which of the following is not one of dependent demand goods ?
A) Chip
Mother board
Power unit
Computer
5) Which of the following word means waste?
Andon
Jidoka
Poka-yoke
Muda

4. Section B/type 1-Example- KPA/KPM
The following table contains information related to the major activities of a research project. Use the information to do the following: each case may require the use of a dummy activity.
Draw a precedence diagram using AOA
Find the critical path based AOA.
Determine the expected length of the project.
Calculate the amount of slack time for each path as well as ES, EF, LS and LF

5. Section B/type 1-Example- KPA/KPM

6. Section B/Type2-Example-PERT
Given the following diagram:
Compute
(a) the expected time
(b) the expected duration
(c) Identify the critical
(d) path The variance
(e)The std. deviation
(f) the probability that the project can be completed within 26 weeks of its start (project manager receives a bonus of $ 1000)
(g) the probability that the project can be completed within 27 weeks of its start (project manager receives a bonus of $ 500).
Before complete the sections, do not forget to draw its AOA diagram.

7. Section B/Type2-Example-PERT
Activity
Predecessor
Time(weeks) A -
2-4-6 D
6-8-10 E
7-9-12 H
2-3-5 F
3-4-8 G
5-7-9 B
2-2-3 I
2-3-6 J
3-4-5 K
4-5-8 C
5-8-12 M
1-1-1 N
6-7-11
8-9-13
End
H, G, K, 0

8. Section C/type 1-Example-EOQ
A bakery buys flour in 25 pound bag. The bakery uses an average an average of 4860 bags a year. Preparing an order and receving a shipment of flour involves a cost of $ 10 per order. Annual carring cost is $ 75 per bag.
(a) Determine the EOQ?
(b) What is the average number of bags on hand?
(c) How many orders per year will there be?
(d) Compute the total cost of ordering and carring flour.
(e) How much would that affect the minimum total annual cost if the ordering costs were to increase by $ 1 per order?

9. Section C/type 2- DISCOUNT
A manufacturer of exercise equipment purchases the pulley section of the equipment from supplier who lists these prices: less than 1000, $5 each; 1000 to 3,999, $ 4.95 each; 4000 to 5999, $ 4.90 each; and 6000 and more $ Ordering costs are $ 50, annual carring costs per unit are 40 percent of purchase cost, and annual usage is 4900 pulleys. Determine
(a) the common EOQ (the common minimum point)
(b) the total cost if the feasible minimum point is on the lowest price range, that is the optimal order quantity.
(c) the total cost if the feasible minimum point is in any other price range.

10. Section C/type 2- DISCOUNT

11. Section C/type 3-Example-ROP
A newspaper publisher uses roughly 800 feet of baling wire each day to secure bundles of newspapers while they are being distributed to carriers. The paper is published Monday through Saturday. Lead time is six working days. The company desires a service level of 95% when stock-out risk for various levels of safety stocks are as follows: 1500 feet, 0.10; 1800 feet, 0.05; 2100 feet, 0.02; and 2400 feet, 0.01?
(a) What value of Z is appropriate?
(b) Find the standard deviation of lead time?
(c) What reorder point should be used?

12. BONUS QUESTION
A manager wants to determine the number of containers to use for incoming parts for a Kanban system to be installed next month. The process will have a usage rate of 80 pieces per hour. Because the process is new, the manager has assigned an inefficiency factor of Each container holds 45 pieces and it takes an average of 75 minutes to complete a cycle .
How many containers should be used?
Will more or fewer containers be required as the system improves? Why?

13. Thanks The answers can be found in the relevant chapters’ solutions sets: 5,6 and 7