Exam 1 Problem Solving Questions Review

Transcription

1 Exam 1 Problem Solving Questions Review SECTION 1 The following data were obtained from a recent quarterly report for Dell Computer (in millions): Net revenue $8,028 Cost of revenue $6,580 Inventories: Production materials $126 Work-in-process and finished goods $224 Accounts receivable $2,689 Accounts payable $4,326 Answer questions 1 to 6 using the information above. Question-1 What is the average daily sale amount? A) B) C) D) E) Question-2 What is the average days of accounts receivables? A) B) C) D) E) Question-3 What is the average daily cost of sales? A) B) C) D) E) Question-4 What is the average days of inventory? A) 6.59 B) 8.98 C) 2.36 D)

2 E) Question-5 What is the average days of accounts receivable? A) B) C) D) E) 0 Question-6 What is the cash to cash cycle time? A) B) C) D) E) SECTION 2 The Trapper Lawn Equipment Company manufactures a line of riding mowers. The company currently uses a chase strategy in its sales and operations planning. Management attempts to maintain a line fill rate of at least 99 percent and hold inventory of five days. Employees can produce three units a day on average. The historical records for the last three months and the plan for the next six months are given as follows: Sales History Plan Oct Nov Dec Jan Feb Mar Apr May June Forecast (in millions$) (in units) (in units) Actual Diff. month Diff. cumulative Operations Plan (in units) (in employees) Number of working days/mo Actual Diff. month Diff. cumulative Inventory Plan (in units) (in 1,000 $) Actual in units) Days of supply

3 Given the above information, suggest a revised production plan for the next three months (January, February, March) that will hit the five days of inventory supply target if you accept the sales forecast. You should use the table below and answer questions 7 to 10. Sales History Plan Oct Nov Dec Jan Feb Mar Apr May June Forecast (in millions$) (in units) Actual (in units) Diff. month Diff. cumulative a. Revised Plan Operations Plan (in units) (in employees) Number of working days/mo Actual Diff. month Diff. cumulative Target DOS Inv.: 5 Inventory Plan (in units) (in 1,000 $) Actual in units) Days of supply Question-7 What is the planned production in the month of January? A) B) C) 0 D) E) 3300 Question-8 What is the target days of supply (in units) in the month of February? A) 500 B) 652 C) 753 D) 833 E) 901 Question-9 3

4 What is the planned production in March? A) 1325 B) 2500 C) 3348 D) E) 1850 Question-10 What is the plan inventory (in 1000 $) in March? A) B) C) D) 1750 E) SECTION 3 SummerFun, Inc., produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast: Month Mar Apr May Jun Jul Aug Sep Total Forecast Use the following information to develop aggregate plans. Regular production cost $80 per unit Back-order cost $20 per unit Overtime production cost $120 per unit Beginning inventory 0 units Regular capacity Overtime capacity Subcontracting cost Subcontracting capacity Holding cost 40 units per month 8 units per month $140 per unit 12 units per month $10 per unit per month Develop an aggregate plan using regular production. Supplement using inventory, overtime, and subcontracting as needed. No backlogs allowed. You should use the table below and answer question 11 to 14. 4

5 Period Mar. Apr. May Jun. July Aug. Sep. Total Forecast Regular Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs Regular cost Overtime cost Subcontract Inventory cost Backlog Costs Total cost Question-11 What is the regular production cost for March? A) $3600 B) $3200 C) $2600 D) $2800 Question-12 What is the subcontract cost for March? A) $280 B) $320 C) $180 D) $460 Question-13 What is the total cost for June? A) $4680 B) $6820 C) $5840 D) $4960 Question-14 What is the sum of the total costs from March to Sept.? A) $31,250 B) $74,260 5

6 C) $62,640 D) $44,810 SECTION 4 SummerFun, Inc., produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast: Month Mar Apr May Jun Jul Aug Sep Total Forecast Use the following information to develop aggregate plans. Regular production cost $80 per unit Back-order cost $20 per unit Overtime production cost $120 per unit Beginning inventory 0 units Regular capacity Overtime capacity Subcontracting cost Subcontracting capacity 40 units per month 8 units per month $140 per unit 12 units per month Develop an aggregate plan using a level strategy. Use a combination of backlogs, subcontracting, and inventory to handle variations in demand. You should use the table below and answer question 15 to 20. Period Mar. Apr. May Jun. July Aug. Sep. Total Forecast Regular Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Regular cost Overtime cost Subcontract Inventory cost Backlog Costs Total cost Question-15 What is the overtime cost for March? A) $360 6

7 B) $840 C) $960 D) $280 Question-16 What is the Subcontract cost for March? A) $360 B) $840 C) $960 D) $280 Question-17 What is the backlog for June? A) 7 B) 8 C) 9 D) 10 Question-18 What is the backlog cost for June? A) $220 B) $260 C) $180 D) $620 Question-19 What is the total cost for August? A) $6280 B) $5425 C) $4285 D) $4445 Question-20 What is the sum of the total costs from March to Sept.? A) $76,250 B) $66,520 C) $31,520 D) $44,640 7

8 SECTION 5 A firm's forecast is given in the table below. Please prepare an economical operations plan to meet the forecast using level workforce. No backorders are allowed. Starting inventory of the first month is 500 units. The employee productivity is 5 units per day. Complete the table below and answer questions 21 to 23. Month Forecast Working days Employees Planned Production Beginning inventory Ending Inventory Question-21 How many employees are needed? A) 22 B) 36 C) 45 D) 66 Question-22 What is the minimum inventory level? A) 100 B) 200 C) 300 D) 400 Question-23 What is the ending inventory of period 4? A) 7625 B) 6650 C) 3150 D)

9 SECTION 6 Georgia Clay and Gravel was updating the MPS record for one of its products, Smell Fresh Cat Litter. Complete the following MPS time-phased record and answer questions 24 to 27. Item: Smell Fresh on hand Week Forecast Orders Project. Avail Bal. 20 Available-to-promise MPS MPS Lot Size = 50 Question-24 What is the projected available balance for period 4? A) 60 B) 80 C) 30 D) 20 Question-25 What is the available to promise for period 5? A) 60 B) 80 C) 90 D) 50 Question-26 What is the MPS for period 6? A) 50 B) 40 C) 30 D) 0 Question-27 What is the projected available balance for period 8? A) 20 B) 60 C) 10 D) 30 9

10 SECTION 7 The following events occurred during week 1 for Georgia Clay and Gravel mentioned in SECTION 6. Actual demand during week 1 was 25 units. Marketing forecasted that 40 units would be needed for week 9. An order for 10 in week 2 was accepted. An order for 20 in week 4 was accepted. An order for 6 in week 3 was accepted. The MPS in week 1 was produced as planned. Update the record below after rolling through time and answer questions 28 to 31. Item: Smell Fresh on hand Week Forecast Orders Project. Avail Bal. Available-to-promise MPS MPS Lot Size = 50 Question-28 What is the projected available balance for period 5? A) 60 B) 80 C) 45 D) 20 Question-29 What is the available to promise for period 7? A) 60 B) 80 C) 50 D) 70 Question-30 What is the MPS for period 9? A) 50 B) 40 C) 30 10

11 D) 0 Question-31 What is the projected available balance for period 9? A) 23 B) 31 C) 13 D) 10 11