Quiz-2 - Lecture notes 2 PDF

Preview

Summary

Quick note for quiz 2 content...

Description

Quest i on1

In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant, the EOQ will increase by about 41% increase by 100%. increase by 200%. increase, but more data is needed to say by how much Quest i on2

It is now near the end of May and you must prepare a forecast for June for a certain product. The forecast for May was 900 units. The actual demand for May was 1000 units. You are using the exponential smoothing method with α= 0.20. The forecast for June is: fewer than 925 units greater than or equal to 925 units but fewer than 950 units greater than or equal to 950 units but fewer than 1000 units greater than or equal to 1000 units Quest i on3

A master production schedule specifies the raw materials required to complete the product what component is to be made, and when what product is to be made, and when the labour hours required for production Quest i on4

Which one of the following is an MRP lot-sizing rule that attempts to minimize the amount of average inventory? periodic order quantity (POQ), with P = 2 fixed order quantity (FOQ) economic order quantity (EOQ) lot for lot (L4L) Quest i on5

Time-series data may exhibit which of the following behaviors? trend random variations seasonality cycles They may exhibit all of the above Quest i on6

A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per unit per year. The cost-minimizing solution for this product is to order all 4000 units at one time 200 units per order every 20 days 10 times per year Quest i on7

Demands for a newly developed salad bar at the Great Professional restaurant for the first six months of this year are shown in the following table. What is the forecast for July if the 3-month weighted moving-average method is used? (Use weights of 0.5 for the most recent demand, 0.3, and 0.2 for the oldest demand.)

Month January February March April May June

Demand (units) 394 365 380 439 412 467

fewer than or equal to 432 units greater than 432 units but fewer than or equal to 442 units greater than 442 units but fewer than or equal to 452 units greater than 452 Quest i on8

Use the following partially completed MRP record to answer the question. Item: XYZ Lot Size: L4L; ;EAD Time: 1 week Date 1 2 3 Gross Requirements 50 20 30 Scheduled Receipts Projected on Hand (50) Planned Receipts

4

5 40

6 20

7

8

Planned Order Release What are the quantities of planned order releases for item XYZ for the first six weeks (weeks 1, 2, 3, 4, 5, and 6)? 20, 30, 0, 40, 20, 0 35, 0, 60, 0, 0, 0 5, 30, 0, 40, 20, 0 35, 0, 0, 40, 20, 0 Quest i on9

Dependent demand and independent demand items differ in that for any product, all components are dependent-demand items the need for independent-demand items is forecast the need for dependent-demand items is calculated All of the above are true Quest i on10

A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic order quantity? 16 70 11 0 15 0

Quest i on11

It is week 1 and there are currently 20 As in stock. The MPS calls for 300 As at the start of week 5. If there are scheduled receipts planned for week 3 and week 4 of 120 As each and A has a lead time of 1 week when and how large of an order should be placed to meet the requirement of 300 As? Week 1, 300 As Week 1, 40 As Week 5, 40 As Week 4, 40 As Quest i on12

John's House of Pancakes uses a weighted moving average method to forecast pancake sales. It assigns a weight of 5 to the previous month's demand, 3 to demand two months ago, and 1 to demand three months ago. If sales amounted to 1000 pancakes in May, 2200 pancakes in June, and 3000 pancakes in July, what should be the forecast for August? 2400 2511 2611 2311 Quest i on13

A product whose EOQ is 400 experiences a 50% increase in demand. The new EOQ is unchanged increased by less than 50%. increased by 50%. increased by more than 50%. Quest i on14

A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10. The revised EOQ is three times as large one-third as large nine times as large one-ninth as large Quest i on15

Consider the following data concerning the performance of a forecasting method. Month Actual Demand Forecast 270 1 300 280 2 200 260 3 270 270 4 250 250 5 310 The CFE is greater than 100, and the MAD is less than 50 The CFE is less than 100, and the MAD is less than 50 The CFE is less than 100, and the MAD is greater than 50 The CFE is greater than 100, and the MAD is greater than 50 Quest i on16

A forecasting method has produced the following over the past five months. What is the mean absolute deviation?

Actual 10 8 10 6 9

Forecast 11 10 8 6 8

Error -1 -2 2 0 1

|Error| 1 2 2 0 1

-0.2 -1.0 0.0 1.2 Quest i on17

A bill of material lists the times needed to perform all phases of production production schedules for all products components, ingredients, and materials required to produce an item operations required to produce an item components, ingredients, materials, and assembly operations required to produce an item Quest i on18

The Delphi method of forecasting is useful when: judgment and opinion are the only bases for making informed projections a systematic approach to creating and testing hypotheses is needed and the data are usually gathered by sending a questionnaire to consumers historical data are available and the relationship between the factor to be forecast and other external or internal factors can be identified historical data is available and the best basis for making projections is to use past demand patterns Quest i on19

All of the following statements about ABC analysis are true except inventory may be categorized by measures other than dollar volume it categorizes on-hand inventory into three groups based on annual dollar volume. it is an application of the Pareto principle it states that all items require the same degree of control Quest i on20

There are historically three 32-month periods of generally rising prices in the stock market for every one 9-month period of falling prices. This observation leads you to conclude that the stock market exhibits a: random pattern trend pattern seasonal pattern cyclical pattern Quest i on21

If the actual order quantity is the economic order quantity in a problem that meets the assumptions of the economic order quantity model shown below, the average amount of inventory on hand is smaller than the holding cost per unit is zero is one-half of the economic order quantity is affected by the amount of product cost Quest i on22

In the basic EOQ model, if D = 6000 per year, S = $100, H = $5 per unit per month, the economic order quantity is approximately 24 10 0 14 1 18 0

Quest i on23

What is the approximate forecast for May using a four-month moving average? Nov. Dec. Jan. Feb. Mar. April 39

36 38 42 43 44 47

Quest i on24

40

42

48

46

Given the following bill of material

A C(3)

B (2) C(1)

D(1)

D (1)

D (1) E(2)

F(1)

G(2)

If the demand for product A is 50 units, what will be the gross requirement for component E? 10 0 20 0 25 0 30 0...