OSCM373 EXAM 3 REVIEW QUESTIONS AND ANSWERS, GRADED A+[LATEST EXAM UPDATES]

OSCM373 EXAM 3 REVIEW QUESTIONS AND ANSWERS, GRADED A+ A business owner uses 162 parts each day. Ordering cost for parts is $10 per order, and annual holding cost is 1 dollars per unit. Assume 360 days in a year. What is the Economic Order Quantity for parts? - 1,080 EOQ=SQRT(2DS/H)=SQRT(2*162*360*10/1)=1,080 units. A business owner uses 162 parts each day. Ordering cost for parts is $10 per order, it take 3 days to receive the parts once an order is placed, and annual holding cost is 1 dollars per unit. Assume 360 days in a year. What is the ReOrder Point for parts? - when 486 parts are left ROP = L*R = 3*162 = 486 parts Blue Star Ice Cream makes & sells fresh gelato daily. The cost to make a quart of gelato is $10 and it is sold for $20. Leftover gelato remaining at the end of the day is made into milkshake and sold for $8 per quart. What is the optimal Service-Level for Blue Star? - 83.33% Cs = 20 - 10 = $10 Ce = 10 - 8 =$2 SL = Cs/(Cs+Ce) = 10/ (10+2) = 83.33% Double-checking your answers before submitting the exam is an example of: - Appraisal Cost The probability of concluding that only random variation exists when in fact assignable (non-random) variation is present is: - the probability of a Type 2 error A Quality analyst wants to construct an x-bar chart for controlling the service life of a light bulbs produced by the company. The analyst knows that service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On recent production batches, service life was tested on random samples of 4 (n=4) light bulbs. If the analyst decides to set the control limits three sigma (z=3) from the mean, what should be the upper and lower control limits for an x-bar chart (i.e., the control limits for the sample average)? - 470 and 530 500 +/- 3*20/SQRT(4) Using x-bar chart control limits of UCL=530 and LCL=470, which of the two samples presented in the table below, should be determined to b