Ie 343 2004 Test 1

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IENG 343

March 4, 2004

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33 questions: each question is worth (3) points except problem 9 is worth (4) points for a total of 100 points. Given: The Green Bird Co. wants to increase their units produced. A new replacement machine costs the company extra dollars per day to lease and the production rate increases substantially per day. Also, the new equipment requires more energy per day to operate. The new machine has a better scrap rate and therefore requires less material per unit. The new machine requires a much higher labor grade of operator and the labor costs go up per unit. The company uses the "Multifactor Productivity Rate" discussed in Chapter 2 to evaluate their decision. The related costs per day are as shown below: Old Machine 3000 Units $2.00 $4.00 $600 $200

Descri tion Production Material/unit Labor/unit Ca ital Enerer

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(A) What is increase (+)

New Machine 3500 Units $1.70 $5.00 $900 $300

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in the productivity of new machine as a % (one decimal)

(B) What is the Multifactor Productivity for the old machine (three decimals).

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Given: The Bruno Co. makes one product, Part ABC. It has 4 product lines working for three (8-hour) shifts per day per week. There are 5 days/week. Each product line is designed to produce 20 units of product per hour. Each product line requires Hlour per shift for setup. Each product line schedules .5-hQuL.~r shift for maintenance and cleanup. The factory efficiency£O%. ~ 2.

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What is the anticipated production of the company per week?

of Given: A manufacturing company preparing to build a new plant is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below: COSTS

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WV NC OH $10,000 $$25/unit 15/unit $10/unit $20,000 $30,000

2CD:::What range of number of units is NC the low-cost choice (Between NC

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Using the factor ratings shown below, what is the maximum composite score and the location that should be considered as the recommended location:

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Factor Easy access Parkin facilities

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Given: Environmental Glass Products, Inc., wants to build a new centralized facility to receive household, commercial, and industrial glass for recycling. This center will be supplied by trucks coming from three "collection points," where recyclable glass is dropped off by individuals and businesses. The company will use the "Center-of-Gravity Method" to decide where the new collection center would be built. The Volume and map

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coordinates for the four collection centers are shown below: 100 Coordinates 500 400 Volume (7,2) (3,7) (X,Y) Collection (4,3) Points

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are the coordinates (one decimal) of where the new collection center should be located?

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Given: The Red Bird Co. makes four final products (AB, CD, EF, GH). They have calculated that their Break Even total annual sales required is $500,000. The sales % for the products is AB = 15%, CD = 20%, EF = 35%, GH = 30%. The selling price of the products is AB = $50, CD = $40, EF = $30, and GH = $20. 6.

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GH needed for the company.

Given: The Blue Co. took their 2002 and 2003 sales demand and calculated their seasonal index for each month. For June, the seasonal index was .75. The company expects to sell 3600 units in year 2004.

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What isthe forecast of unit sales for June 2004?

Given: The Green Co. has the following sales for 2002 and 2003 which is seasonal.

2002

Jan 100

2003 )~, 8.

Feb 100

Mar 100

Apr 100

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June 200

July 200

Aug 200

Sep 100

Oct 100

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What is the seasonal index for May 2004?

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Given: The Jp Holly Co. wants to use a regression line to predict the next month's sales. They have plotted the demand (thousands of units) and have found that a linear relationship exists. The regression line is y = 8.742 + 1.437 x. The actual sales demand for year 2003 is shown below:

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xSQ 18 10 19 217 20 160 400 22 100 484 26 23 275 81 225 1 1 17 126 324 289 4 3 80 9 6 7xy 6 4 8 4221 650 y230 198 121 144 25 676 312 625 529 10 11 39 15 139 1694 60 1002 24 124 1443 2566 16 102 2 5 1616 12 5 x ySQ Demand

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(A) What is the forecasted sales in total units for February of 2004? (B) What is the "measure of the variability around the regression line" in total units?

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270 Feast 230 260 Demand 250 Given: The Bedrock Lead Co. has the followin~data: 1/ (C) V' Month

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At the end of March, what is the tracking signal in number of MADs.

Given: The Red Dog Company is trying to evaluate its costs. They produce only one product, part XYZ that is sold toone company, the Ajax Manufacturing Company~ They sell 20,000 parts per year. They have the following costs: . Cost Description

Costs in dollars 100,000 10,000 1,000

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What is the total costs per year (variable and fixed) for the Red Dog Company?

Given: Yellow Co. has a Production Schedule Rate for their three products for each week at X = 150, Y = 200, and Z = 200. The Yellow Co. wants to plan its need for labor. Total labor required to produce each unit of X is 4 hours, each unit of Y is 3 hours, and each unit of Z is 5 hours.

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What is the total labor requirements in people for the first week (assume that one person is

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required for every 40 hours needed).

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Given: The JB Davis Co. has the following actual demand for year 2003:

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Given: Robert is the production manager at a company, which manufactures diesel engines. Robert needs a 2003 was 60 units; the initial estimate of the trend was 2bo. Alpha = .3 and Beta = .6. The actual sales for year demand for theUse nextExponential year to helpSmoothing decide whether to add new production capacity. The initial forecast for 2003 wasforec~~t 610 units. wlTrend:

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What is the forecast for diesel engines for year 2004

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Given: The Blue Duck Co. makes three products (X, Y, Z), have fixed costs of $10,000 per month and they have the following costs for year 2003:

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_S_What is the break-even amount of annual sales dollars needed for the Blue Duck Co.?

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What is the break-even amount of annual sales of units product C needed for the company?

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is Co. profit (+) or loss (-) if they sell exactly the sales number of units of A, B, &

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Given: A company is producing an end product Part X. Each X is made of one Part A and (4) of Part B. Part A is made of (2) of Part E and one of Part F. Part B is made of one on Part C. Part F is made of (2) Part C. 18. Draw a complete product structure for Part X.

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To make for 100 part X, how many part C do we need?

Given: The MBC Bike Company has 4 stores in West Virginia. The company wants to forecast the profit for a given dollar of sales using a regression line for the data. Sales are in millions of dollars and the profits are in thousands of dollars.

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21. Forecasts used for new product planning, capital expenditures, facility location or expansion, and R&D typically utilize a: d. naive method, because there is no data history e. all of the above long-range horizon '0." medium-range horizon c. short-range horizon

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22. (Location Strategies Chapter) Tangible costs include which of the following? a. public transportation facilities d. (a and b above) b. c.

utilities depreciation

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a. graphite pencils c. ustom furniture e. cigarettes 23. b. Which of the following products is most lik~l ,. made in a (jobhamburgers shop) Process Focus environment? personal computers McDonald's

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24. In what stage of the "Product Life Cycle" is a poor time to change image, price, or quality and competitive cost become critical. a. Introduction

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25. A product focus strategy is best used when the company needs the following: a. long runs, usually a standardized product w/options are produced

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quantity and_s.:r::~~! v(1ri~ty of]Jr()~ll_~t~~reproduced quamityand large variety of products are produced quantity & large variety of products are produced of the above

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26. A listing of the operations necessary to produce the component is called a. b.

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bill of material assembly chart

c. engineering drawing d. assembly drawing

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List the seven steps in the forecasting system:

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~~~What are the external a~pects of the SWOT analysis (list a~~~ll~~nd t company use them for). ~I' pG~1.rf(fiVd1t;S ~= CAIfPCin -+\"f-

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29. List two things that a company would do to glanage demand if demand is less than theavailable,capacity:

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30. List two things that a company would do to manage capacity if the demand is greater than available capacity: <;

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31. Explain what is meant by competing on the strategy of response. ;-1-

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32. Explain why a company would use the location strategy "Location is by Proximity to Suppliers."

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33. Explain what a "Pick List" is and how it is used in a company .

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Given: Part A is made up of (1) Part B's and (2) Part C's. Part B is made of (2}Part D's and (1) part E. PartA !$4 art are an are actureart Material Overhead Labor fDl6+'YL d . PCP D dP E urchased. The breakdown of the Unit costs are: and P art B ,art $X $5 $Y $6 qmanu $0 I~$10 $0 $5 $10 $20

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What is the Unit Cost for Part A?