The dulac box plant produces 500

POMS.3010 Operations Management Midterm Exam Calculation questions, 10 points each. PLEASE SHOW YOUR WORK. 1. The Dulac Box plant produces wooden packing boxes to be used in the local seafood industry. Current operations allow the company to make 500 boxes per day, in two 8hour shifts (250 boxes per shift). The company has introduced some moderate changes in equipment, and conducted appropriate job training, so that production levels have risen to 300 boxes per shift. Labor costs average $10 per hour for each of the 5 full-time workers on each shift. Capital costs were previously $3,000 per day, and rose to $3,200 per day with the equipment modifications. Energy costs were unchanged by the modifications, at $400 per day. a) What is the firm's multifactor productivity before the changes? b) What is the firm's multifactor productivity after the changes? Page 1 of 5 2. A company is choosing an outside firm to provide its payroll services. It has chosen four comparative categories of interest: client reviews, financial condition, IT capabilities, and government stability. These categories have been assigned weights of 20%, 10%, 40%, and 30%, respectively. Two potential providers were scored on each of those factors (see table below) using a scale of 1-10, with a score of 1 meaning worst possible and 10 meaning best possible. Using the factor-rating method, which provider should be chosen? Client reviews Financial condition IT capabilities Government stability Provider A 2 8 5 3 Page 2 of 5 Provider B 6 4 8 1 3. Consider the supply chain illustrated below: 1200 600 500 1150 Last year, the retailer’s weekly variance of demand was 500 units. The variance of orders was 600, 1200, and 1150 units for the retailer, wholesaler, and manufacturer, respectively. (Note that the variance of orders equals the variance of demand for that firm’s supplier.) a) Calculate the bullwhip measure for the retailer. Is the bullwhip effect present here? b) Calculate the bullwhip measure for the wholesaler. Is the bullwhip effect present here? c) Calculate the bullwhip measure for the manufacturer. Is the bullwhip effect present here? d) Which firm appears to be contributing the most to the bullwhip effect in this supply chain? Why? Page 3 of 5 4. Amy Zeng, owner of Zeng’s Restaurant Distributions, supplies nonperishable goods to restaurants around the metro area. She stores all the goods in a warehouse. The goods are divided into five categories according to the following table. The table indicates the number of trips per month to store or retrieve items in each category, as well as the number of storage blocks taken up by each. Item Category Paper Products Dishes, Glasses, and Silverware Cleaning Agents Cooking Oils and Seasonings Pots and Pans Monthly Trips Area Needed (Blocks) 50 2 16 4 6 2 30 2 12 6 The following picture of the warehouse provides an identification number for each of the 16 storage blocks. For each item category, indicate into which blocks it should be stored. Page 4 of 5 5. The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as components in minicomputers. The unit cost of each transistor is $10, and the cost of carrying one transistor in inventory for a year is $3. Ordering cost is $30 per order. Assume that Fisher operates on a 200-day working year. a. What is the optimal order quantity? b. What is the expected number of orders placed each year? c. What is the expected time between orders? d. What is the total cost? Page 5 of 5 ...