OPMGT 396 Test 2

subject Type Homework Help
subject Pages 3
subject Words 382
subject Authors R. Dan Reid

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Frank's umbrella corporation is designing a kanban system. They know that they are
expected to produce 100 umbrellas per hour. They've also determined that a key
external resource takes 30 minutes to deliver the required material once an order has
been transmitted. To start with they want to maintain a safety stock of 25 critical parts.
Originally they want to start with 3 kanbans. What container size should Frank's
umbrella company start with?
A firm must choose between remaining where it is, with current capacity, and building a
new facility with 50% more capacity. The probability of high demand is estimated to be
75%. The current facility would provide $100,000 profit if there is high demand or
$50,000 profit if there is low demand. The replacement facility would provide
$160,000,000 profit if there is high demand but would only break even if there is low
demand. What is the expected value of each option?
Arriving customer population is considered to be ____________ if the number waiting
in line does not significantly affect the rate at which the population generates new
customers.
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The time it should take a qualified worker using appropriate process and tools to
complete a specific job allowing time for personal fatigue and unavoidable delays is
called _________________.
The central belief of the JIT philosophy is elimination of waste) What are the other
beliefs that help define this philosophy?
What is a correlation coefficient?
_______________ assumes that we make enough of everything to build the required
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quantity, ignoring beginning inventory.
___________________ is an important advantage of level production plans.
What is the EPQ for a product whose annual demand is 48,000 with setup cost = $15,
holding cost = $6, daily demand 1,250, and daily production = 1500?

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