GORDON COLLEGE

COLLEGE OF HOSPITALITY AND TOURISM MANAGEMENT

1ST Semester A. Y. 2019-2020

CBME01 OPERATION MANAGEMENT

MIDTERM EXAMINATION

NAME:_______________________________________________________ DATE:___________________
COURSE:_____________________________________________________ SCORE:__________________

IMPORTANT INSTRUCTIONS: Strictly no ERASURES or SUPERIMPOSITION. (100pts.)

I. Identification: Select the best answer from the choices given and write in the space provide. (20 pts.)
_________________ 1. This phase includes goal setting, defining the project, and team organization.
_________________ 2. The art and science of predicting future events.
_________________ 3. A global network of organizations and activities that supplies a firm with goods and services.
_________________ 4. A productivity measurement that uses only one resource input.
_________________ 5. The creation of goods and services.
_________________ 6. Activities that relate to the creation of goods and services through the transformation of inputs to outputs.
_________________ 7. Responsible for selling and promoting organizations goods and services.
_________________ 8. Customers, talent, and suppliers are worldwide.
_________________ 9. Transferring a firm’s activities that have traditionally been internal to external suppliers.
_________________ 10. A set of skills, talents, and capabilities in which a firm is particularly strong.
_________________ 11. Forecasts that employ mathematical modeling to forecast demand.
_________________ 12. A forecasting technique that uses the opinion of a small group of high-level managers to form a group
estimate of demand.
_________________ 13. A project management technique that employs three time estimates for each activity.
_________________ 14. The most probable time to complete an activity in a PERT network.
_________________ 15. It is a type of forecast that addresses the business cycle by predicting inflation rates, money supplies,
housing starts, and other planning indicators.
_________________ 16. A time horizon in forecasting that generally 3 years or more in time span.
_________________ 17. Forecast that incorporate such factors as the decision maker’s intuition, emotions, personal experiences,
and value system.
_________________ 18. Erratic and unpredictable variation in the data over time with no discernable pattern.
_________________ 19. The forecast for next period will be equal to demand in the most recent period.
_________________ 20. The ratio of outputs divided by one or more inputs.

Core competencies Long-range forecast Outsourcing Qualitative forecasts

Economic forecasts Marketing PERT Quantitative forecast
Forecasting Most likely time Planning Random variations
Globalization Naïve approach Production Single-Factor Productivity
Jury of executive opinion Operations management Productivity Supply Chain

II. Compute the following problem and show complete solution. (80 pts.)
1. Lilian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok males 1,000 tires per day with
the following resources:

Labor: 400 hours per day @12.50 per hour

Raw Material: 20,000 pounds per day @ 1 per pound
Energy: $5,000 per day
Capital Costs: $10,000per day

a) What is the labor productivity per labor-hour for these tires at Lakefront Manufacturing?
b) What is the multifactor productivity for these tires at Lakefront Manufacturing?
 c) What is the percent change in multifactor productivity if Fok can reduce the energy bill by $1,000 per day
without cutting production or changing any other inputs?

2. Kelle Carpet and Trim installs carpet in commercial offices. Peter Kelle has been very concerned with the amount
of time it took to complete several recent jobs. Some of his workers are very unreliable. A list of activities and their
optimistic completion, the most likely completion time, and the pessimistic completion time(all in days) for a new
contract are given in the following table:

TIME (DAYS) IMMEDIATE

ACTIVIT
PREDECESSOR(S EXPECTED VARIANCE
Y
a m b ) TIME
A 4 6 8 ----    
B 3 4 5 ----    
C 1 2 3 ----    
D 6 7 8 C    
E 2 4 6 B,D    
F 6 10 14 A,E    
G 1 2 3 A,E    
H 3 6 9 F    
I 10 11 12 G    
J 14 16 20 C    
K 2 8 10 H,I    

a. Determine the expected completion time and variance for each activity.
b. Determine the total project completion time and the critical path for the project.
c. Determine ES, EF,LS,LF, and slack for each activity.

3. The Carbondale Hospital id considering the purchase of a new ambulance. The decision will rest partly on the
anticipated mileage to be driven next year. The miles driven during the past 5 years are as follows:

YEAR MILEAGE
1 3,000
2 4,000
3 3,400
4 3,800
5 3,700

a. Forecast the mileage for next year (6th year) using a 2-year moving average.
b. Forecast the mileage for next year (6th year) using a 2-year weighted moving average.

Prepared by:

Charisa S. Provido
Instructor

Verified:

Jason M. Bagason
HM Coordinator

Approved:

Mark Alvin V. Lazaro

Dean, CHTM