DePaul University MGT301 final exam

Q2

Control charts for variables are based on data that come from
a. acceptance sampling
b. individual items
c. averages of small samples
d. averages of large samples
e. the entire lot

Q3

When a sample measurement falls inside the control limits, it means that
a. each unit manufactured is good enough to sell
b. the process limits cannot be determined statistically
c. the process output exceeds the requirements
d. if there is no other pattern in the samples, the process is in control
e. the process output does not fulfill the requirements

Question 4 0 / 1 point

The upper and lower limits for diving ring diameters made by John’s Swimming are 40 and 39 cm. John took 11 samples with the following average diameters:

39

39.1

39.2

39.3

39.4

39.5

39.6

39.7

39.8

39.9

40

Is the process in control?

No, there is a distinguishable pattern to the samples.

No, the range is not in control.

No, some diameters exceeded the control limits.

Yes, no diameters exceeded the control limits.

Question 5

Which of the following statements about the basic EOQ model is true?

If the ordering cost were to double, the EOQ would rise.

If annual demand were to double, the EOQ would increase.

If the holding cost were to increase, the EOQ would fall.

If annual demand were to double, the number of orders per year would increase.

All of the above statements are true.

What is the main reason why a Manufacturer prefers a larger order size than its Retailers?

The Manufacturer’s unit holding cost is larger than the Retailers’.

The Manufacturer’s unit order/set-up cost is larger than the Retailers’.

The Retailers’ unit holding cost is larger than the Manufacturer’s.

Question

Keeping a product generic as long as possible before customizing is known as
a. postponement
b. keiretsu
c. channel assembly
d. forward integration
e. backward integration

Question

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Estimate the inventory turnover from the above data.

1.3

16.7

5.4

5.0

Explain under which conditions your postponement example provides an improvement in terms of operational efficiency & costs