Operations Management
QSO 300 Introduction to Operations Management
The assignment consists of five essay and two problem questions. Answer all the questions. The essay questions are worth 14 points each, and the problems are worth 15 points each.
Essay Questions:
There is no set length for answers; you may be as verbose as you feel necessary to cover the question. Use this document for your answers, placing them below each question.
Problem Questions:
Make sure to show ALL your work to get full credit. The instructor needs to know the formulas and calculations you used to get to your final answer. You can do part of the exam in Excel and paste your Excel work into this document.
Note: You may use the text and any other materials. Again, ALL work MUST be shown.
Essay Questions
Question 1:
List several of the major differences between manufacturing and service operations and then articulate the importance of a strong manufacturing base to the overall economy.
Question 2
Describe the objectives of aggregate (production) planning and the relationship between the aggregate plan and the master production schedule.
Question 3:
Explain the logic behind how MRP’s gross-to-net calculations are processed. What input files are included in this process?
Question 4:
Define the theory of constraints (TOC) and list the five steps in the TOC process.
Question 5:
What are the four criteria for determining the effectiveness of a scheduling decision?
Problem Questions
Question 6:
Riverside Metal Works produces cast bronze valves on a 10-person assembly line. On a recent day, 160 valves were produced during an 8-hour shift.
A) Calculate the labor productivity of the line.
B) The operations manager was able to change the layout and increase production to 180 units per 8-hour shift. What is the new labor productivity per labor hour?
C) What is the percentage of productivity increase?
Question 7:
Boreki Enterprise has the following 10 items in inventory. CEO Theodore Boreki asks you to divide these items into an ABC classification:
Item Annual Demand Cost/Unit
A2 3,000 $50
B8 4,000 $12
C7 1,500 $45
D1 6,000 $10
E9 1,000 $20
F3 500 $500
G2 300 $1,500
H2 600 $20
I5 1,750 $10
J8 2,500 $5
A) Develop an ABC classification system for the 10 items.
B) How can Boreki use this information?
C) Boreki reviews the classification and then places item A2 into the A category. Why might he do so?
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