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COB 300 Operations Test 2 Review (Yuyun Zhong) Questions and Answer
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COB 300 Operations Test 2 Review (Yuyun Zhong) Questions and Answer
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COB 300 Operations Test 2 Review(Yuyun Zhong) Questions and Answer
Chapter 5 - Answers -
Steps of Production Process - Answers -1. source the parts needed
2. make the product
3. deliver the product
Lead time - Answers -the time needed to respond to a customer order
Make to stock - Answers -serve customers from finished goods inventory
ex: packaged food
Assemble to order - Answers -Combine a number of preassembled modules to meet a
customer's specifications
ex: dell computers
Make to order - Answers -Make the customer's product from raw materials, parts, and
components
ex: some restaurants
Engineer to order - Answers -Work with the customer to design and then make the
product
ex: aircrafts
How are production process organized? - Answers -1. Project Layout
2. Work Center
3. Manufacturing Cell
4. Assembly Line
5. Continuous Improvement
Project Layout - Answers -A setup in which the product remains at one location, and
equipment is moved to the product.
ex: Making a movie, airplanes, houses
Work Center - Answers --similar equipment or functions are grouped together
-A part being worked on travels from work center to work center
-Work center = Department
-Arrange work centers in a way that optimizes the movement of material.
-Place work centers with large interdepartmental traffic adjacent to each other
, ex: hospital procedure
Manufacturing Cell - Answers --A manufacturing cell is a dedicated area where products
that are similar in processing requirements are produced.
-Formed by allocating dissimilar machines to cells that are designed to work on similar
products (shape, processing, etc.)
-A firm may have many different cells in a production area, each set up to produce a
single product/a similar group of products
ex: computer chip manufacturing
Assembly Line - Answers -Designed for the special purpose of building a product by
going through a series of progressive steps
ex: car production
Discrete process - Answers -Assembly line (e.g., toys, appliances, automobiles)
Continuous Process - Answers -Continuous process (e.g., chemicals, petroleum)
Production-Process Matrix - Answers -
break-even analysis - Answers --Model seeks to determine the point in units produced
where a company will start making profit on the process
-Model seeks to determine the point in units produced where total revenue and total
cost are equal
A manufacturer has three options for obtaining a machined
part:
1. Buy the part at $200 per unit; no fixed cost.
2. Make the part on a numerically controlled semiautomatic lathe at $75 per unit; fixed
cost is $80,000.
3. Make the part on a machining center at $15 per unit; fixed cost is $200,000.
Assume that we sell the part at $300/unit.
A) What would be the best choice if expected demand were:
500 units?
1,000 units?
2,500 units?
Which option should the manufacturer choose? - Answers -1. (Buy the part): $200 x
Demand
2. (Make the part on a semiautomatic lathe) = $80,000 + ($75 x Demand)
3. (Make the part on a machining center). $200,000 + ($15 x Demand)
Lets compute:
(FC1 -FC2) / (VC1-VC2)
$200x = $80,000 + 75x
$125x = $80,000
= 640 Units
$80,000 + 75x = $200,000 + $15x
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