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Midterm Examination Part II, Spring 2019 (Total 40 points) 1.(15) The dean of the Finance Department at Towson University wants to construct a p-chart for determining whether the five faculty members teaching the course are in a state of control concerning the number of students who fail in the course. Accordingly, the chair sampled 400 final grades from last year for each instructor and computed the proportion of failures per instructor as 0.04, 0.02, 0.03, 0.0, and 0.01 respectively. a). Compute the upper and lower standard control limits for this chart. b). A newly hired adjunct taught a class of 50 students this semester and 4 students failed the class. Is the process still in control? 2.(10) The ABC Cement Corporation produces a high-quality cement that is supplied to construction companies. The potential demand and the probability of each potential demand quantity are given for the upcoming year: Demand in Tons Probability 500,000 0.3 250,000 0.4 300,000 0.3 Assuming manufacturing capacity of 700,000 tons, calculate the estimated capacity cushion. 3.(15) A company has the following forecast demand for the next five months: 1,600, 2,400, 3,200, 2,800, and 2,400. The following information is also available. current work force = 15 workdays/month = 20 labor hours/unit = 2 working time/day = 8 hiring cost/worker = $100 layoff cost/worker = $50 Inventory, stockouts, overtime, and subcontracting are not allowed. Only hiring and layoff are allowed to respond to fluctuations in demand. Determine the total cost of hiring and layoff during the five-month period. ...
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