Op and Logisitc

• Five problems.
• Read each problem carefully.
• Write your answer in the designated area. Make sure you ANSWER the questions.
• Show all of your work and necessary calculation steps clearly, you may get partial credit.
• Individual work, no discussion.
• Please check if you have finished all problems and sub-problems.

ODS 333Operations and Logistics Management Midterm 1

1.(20/100 Points) George makes bearing balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of 5% increase in productivity per year.

He has the following data representing last year and this year. Assume both years the units produced are 10,000.

George determines his costs to be as follows:

• Labor: $30 per hour
• Resin: $5 per pound
• Capital expense: 2% of investment
• Energy: $1.5 per BTU

What is George’s Multifactor Productivity for Last year?What is George’s MultifactorProductivity for this year?What was George’s % increase in Multifactor Productivity from last year to this year?

ODS 333Operations and Logistics Management Midterm 1

2. (20/100 Points) Deer Inc. is evaluating its international suppliers’ risks. They are looking internationally for new suppliers of engines. Shown below are the factors, weights, and ratings for 3 possible suppliers.

Which country is the best option that they should choose?

ODS 333Operations and Logistics Management Midterm 1

3. (20/100 Points) The City of Salem is buying new school buses for the local school system. Salem has found three models of school buses that it is interested in. Bus A costs $80,000 to buy and uses diesel fuel, with an average fuel efficiency of 10 miles per gallon. Bus A has an operating cost of $0.28 per mile. Bus B, a hybrid bus, costs $105,000 to buy and uses diesel fuel and battery power, getting an average of 22 miles per gallon. Bus B has an operating cost of $0.32 per mile. The distance traveled annually is 25,000 miles, with expected life of both buses to be 10 years. The average diesel price is $3.5 per gallon.

(a) (10 Points) Based on life cycle cost, which bus is the best option?

(b) (5Points) How many miles does the school district need to put on a bus for break-even?

(c) (5 Points) What is the payback period?

ODS 333Operations and Logistics Management Midterm 1

4. (20/100 Points) Colonial State College is considering building a new multipurpose athletic complex oncampus. The complex would provide a new gymnasium for intercollegiate basketballgames, expanded office space, classrooms, and intramural facilities. The following activitieswould have to be undertaken before construction can begin:

(a) (3 Points) Draw a project network.

(b)(7 Points)Develop the activity schedule for the project (schedule each activity).

(c) (4 Points) Identify the critical path.

(d) (4 Points) Does it appear reasonable that construction of the athletic complex could begin oneyear (52 weeks) after the decision to begin the project with the site survey and initial design plans?What is the expected completion time for the project?

(e) (1 Point) Can activity D be delayed without delaying the entire project? If so, by how manyweeks?

(f) (1 Point) Can activity C be delayed without delaying the entire project? If so, by how manyweeks?

ODS 333Operations and Logistics Management Midterm 1

5. (20/100 Points)Bart’s Barometer Business is a retail outlet thatdeals exclusively with weather equipment. Bart istrying to decide on an inventory and reorder policy for home barometers. Barometers cost Bart $50 each and demand isabout 500 per year distributed fairly evenlythroughout the year. Reordering costs are $80 per order and holdingcosts are figured at 20% of the cost of the item. Bart’sBarometer Business is open 300 days a year (6 days aweek and closed two weeks in August). Lead time is60 working days. Calculate optimal quantity to order, time between orders, number of orders per year, total annual cost including product cost, and reorder point.