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BUSI 411 Exam 4 (Version 1), Verified And Correct Answers
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BUSI 411 Exam 4 (Version 1), Verified And Correct Answers
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BUSI 411 Exam 4Question 1
The Operations Manager for Shadyside Savings & Loan orders cash from her
home office for her very popular "BIG BUCKS" automated teller machine, which
only dispenses $100 bills. She estimates that this machine dispenses an average of
12,500 bills per month, and that carrying a bill in inventory costs 10 percent of its
value annually. She knows that each order for these bills costs $300 for clerical
and armored car delivery costs, and that order lead time is six days. Assuming a
30-day month, if she were to order 6,000 bills at a time, what would be the
average monthly total costs, EXCLUDING the value of the bills?
Selected Answer: $3,125
Question 2
The materials manager for a billiard ball maker must periodically place orders for
resin, one of the raw materials used in producing billiard balls. She knows that
manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04
per day to carry a kilogram of resin in inventory. She also knows that the order
costs for resin are $100 per order, and that the lead time for delivery is four days.
What is the economic order quantity for resin?
Selected Answer: 500 kilograms
Question 3
Which of the following is least likely to be included in order costs?
Selected Answer: temporary storage of delivered goods
, Question 4
A cycle count program will usually require that A items be counted:
Selected Answer: more often than annually.
Question 5
The Operations Manager for Shadyside Savings & Loan orders cash from her
home office for her very popular "BIG BUCKS" automated teller machine, which
only dispenses $100 bills. She estimates that this machine dispenses an average of
12,500 bills per month, and that carrying a bill in inventory costs 10 percent of its
value annually. She knows that each order for these bills costs $300 for clerical
and armored car delivery costs, and that order lead time is six days. Assuming a
30-day month, what is the economic order quantity?
Selected Answer: 3,000 bills
Question 6
A lean-systems method of asking questions about a process is the __________
approach.
Selected Answer: 5W2H
Question 7
When lean is used in the context of services, which of the following is most often
the focus?
Selected Answer: the time needed to perform a service
Question 8
Although lean systems tend to produce standardized product lines, to provide
production variety without accompanying waste, lean producers often use
__________ in __________.
Selected Answer: standardized parts; modular designs
Question 9
Which of the following is not something commonly found in lean systems?
(I) Waste reduction
(II) Output match to a detailed forecast
(III) Visual controls
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