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# Production and Operation Management

## Pearl Marie G. Honorio

BSA 3-8

A.
1. D
2. A
3. D
4. B
5. D
6. E
7. B
8. D
9. A
10. B
11. E
12. D
13. D
14. D
15. D
16. A
17. B
18. C
19. C
20. D
21. C
22. C
23. A
24. E
25. C

26. E
27. E
28. D
29. C
30. E
31. C
32. E
33. C
34. A
35. B
36. C
37. A
38. E
39. E
40. C
41. C
42. B
43. A
44. A
45. A
46. C
47. D
48. C
49. E
50. E

B.
51. D
52. C
53. C
54. C
55. C
56. E
57. C
58. A
59. D
60. D
61. B
62. E
63. A
64. C
65. B
66. A
67. E
68. E
69. E
70. A
71. E
72. D
73. C
74. E
75. B

COMPUTATIONS:
51. D
Internet service sold
Divide:
Labor
Leased Bandwidth
Service Fees
Replacement Parts
Multifactor productivity

10,000,000
50,000
25,000
45,000
80,000

200,000
50

52. C
Units produced
Less: Defective units
Units remaining

500
50
450

Defective units
Divide: Units remaining
Percentage increase in productivity

50
450
11.11%

53. C
Hours per day
8
Multiply: Number of workers
4
Total
32
Multiply: Days per week
6
Total
192
Multiply: Number of weeks in a month
4
Total number of hours in a month
768
Cakes per month
Divide: Hours in a month
Labor productivity
54. C
Production:
Machine 1
Machine 2
Total Production
Divide: Number of Machine
Daily machine productivity
55. C.
Total revenue = Total cost
TR = selling price * units

5060
768
6.59/hour

300 frames
180 frames
480 frames
2
240 frames/machine

## (50*20,000) = 250,000 + VC(20,000)

1,000,000 = 250,000 + (20,000) VC
1,000,000 = 250,000 = (20,000) VC
20,000 VC = 750,000
VC = 37.50

56. E
240 sec / 60 sec = 4 minutes
8.5 hrs * 60 mins = 510 minutes
510 mins / 4 mins = 127.5
110 moves / 127.5 = 0.86274 or 86.27%

57. C
TC = Fixed cost + (Variable per unit * no. of units)
Insourcing = outsourcing
500,000 + 60x = 750,000 + 20x
60x 20x = 750,000 500,000
40x = 250,000
x(units) = 6250

58. A
FCoutsourcing + (VCoutsourcing * Q) = FCinsourcing + (VCinsourcing * Q)
900,000 + 28Q = 800,000 + 32Q
32Q = 100,000
Q = 25000
Quantity of Units to produce
Current Annual Demand
Required increase in
demand

25,000 units
22,000
3,000 units

59. D
Sale = Cost
1.50Q = 36,000 + 1.20Q
0.30Q = 36,000
Q = 120,000 units

60. D
RS = (R1)(R2)(R3)
RS = (0.898)(0.933)(0.946)
RS = 79.26%

## 61. Reliability of each component = 0.95(1/5) = 98.98% B

62. E

UCL= x + A2 R

UCL=34.16

UCL=26+ 1.02 ( 8 )

LCL= x A 2 R

LCL=261.02( 8)

LCL=17.84

63. A.
p=

## total number of defective items 80

=
=0.2
total number of observations 400

p=

p (1 p )
0.2 ( 10.2 )
=
n
50

= 0.0566

## UCL= p + z ( p ) =0.2+3 ( 0.0566 )= 0.3698

LCL=p z ( p ) =0.23 ( 0.0566 ) = 0.0302

64. C.
Cp=

USLLSL
6

( USLLSL) =C p6

= 1.2*6(1.3) = 9.36

65. B
AOQ= (Pac)P(N-n)/N
AOQ= (.9974 x .05)[(2000-10)2000)]

4.96%

66. A
N= (DT + S) C
D= 4 units per minute
T= 2 hours = 120 minutes
S= 20% (160 mins) (4 units) = 96 units
C= 10 units
N= [(4 units x 120) + 96 units] 10 units
67. E
N= (DT + S) C
D= 4000 units per hour
T= 15 mins = 1/4 hr
S= 20% (1/4 hr) (4000 units) = 200 units

57.6

C= 20 units
N= [(4000 units x 1/4 hr) + 200 units] 20
units

60

68. E
N= (DT + S) C
D= 4 units per minute
T= 10 minutes
S= 20% (10 mins) (4 units) = 8 units
C= 10 units

4.8

## N= [(4 units x 10 mins) + 8 units] 10 units

69. E
Week sales
Decline in sales per week (200 x 20%)
Forecasted amount of sales next week

P200
40
P160

70. A
Current period forecast

100

## Multiply: No. of periods

Total

500

Actual value for current period

86
586

## Forecast of demand next period

98

71. E

Ft 1= A 1+ ( 1 ) F1
Period
1
2

Demand
7
9

Forecast
5
(7 x .2) + (5 x (1 0.2)) = 5.4

## Ft 1=( 9 0.2 ) + ( 10.2 ) 5.4

1.8+4.32

Ft 1=6.12
72. D
Day Sales

Sale Forecast

Error

24
31
27
29
25

37
41
46
47
50

13
10
19
18
25
85

Error2
169
100
361
324
625
1579

actualforecast = 85 =17
n

2
(actualforecast) 1579

MSE=
=
=315.8=316

73. C

Ft 1= A 1+ ( 1 ) F1
MONTH
March
April

DEMAND
10,000
2,000

May

20,000

June

30,000

FORECAST
8,000
(10,000 x 0.4) + (8,000 x 0.6)
= 8800
(2,000 x 0.4) + (8,800 x 0.6)
= 6080
(20,000 x 0.4) + (6,080 x 0.6)
= 11, 648

## Ft 1=( 30,000 0.4 )+ ( 10.4 ) (11,648)

Ft 1=12, 000+6,989
Ft 1=18,989

74. E
2009
50
150
500
400
1100

Fall
Winter
Spring
Summer
Total

2010
80
450
600
490
1620

2011
120
510
700
610
1940

Fall

2009 1100 / 4 =
2010 1620 / 4 =
2011 1940/
0.1824 = 0.198

Winter
Spring
Summer

0.545
1.818
1.455

1.111
1.481
1.210

275
405
485
0.247
1.052
1.443
1.258

## Average Seasonal Index

Fall
Winter
Spring
Summer

(0.182+0.198+0.247)/
3
(0.545+1.111+1.052)/
3
(1.818+1.481+1.443)/
3
(1.455+1.210+1.258)/
3

0.209
0.903
1.581
1.307

## Average Demand per Season for Next Year

2,000 / 4 = 500

Seasonal Index

Forecast for Each Quarter in 2012
Fall
Winter
Spring
Summer

500(0.209
)
500(0.903
)
500(1.581
)
500(1.307
)

104.5
451.4
790.5
653.5

75. B
Actual Sales
68
48
50
30

Forecast
60
50
60
30

Error
8
2
10
0
20

actualforecast = 20 =5
n