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problem 1: One part of a PERT project, installing equipment, will most probable be completed in 7 days. Though, if there are no worker absences, the equipment can be installed in 4-days. If a member’s the work force happens to catch the Bubonic Flu, this year's disease, the installation will take 16-days. Determine the expected time (te) for the equipment installation?

A. 4 days   
B. 7 days   
C. 8 days   
D. 12 days   
E. 16 days

problem 2: Given that the unit cost = $25, annual carrying charge = 10%, annual demand = 4000 units and ordering cost = $15 per order. Suppose that there are 50 weeks in the work year and 5 working days per week. The lead-time for the product is 2 weeks. Then EOQ is:

A. 21.91 units   
B. 154.92 units   
C. 219.09 units   
D. 300 units   
E. None of above

problem 3: By using the data of problem 2: If 200 units are ordered each time, and then determine the total annual holding cost?

A. $150   
B. $250   
C. $300   
D. $500   
E. $200

problem 4: By using the data of problem 2: If 200 units are ordered each time, how many orders will be placed in a specific year?

A. 2   
B. 5   
C. 10   
D. 20   
E. 25

problem 5: By using the data of problem 2: If 160 units are ordered each time, then find out the time between orders (in working days) is:
A. 2   
B. 5   
C. 10   
D. 20   
E. 25

problem 6: By using the data of problem 2: If 200 are ordered each time, and then determine the total annual order cost?

A. $50   
B. $100   
C. $200   
D. $250   
E. $300

problem 7: Use the data of problem 2 and suppose no safety stock or service level requirement. In order not to run out of stock before the receipt of a new order, at what inventory level must the firm place an order? That is, what is the reorder point equivalent to?

A. 40   
B. 160   
C. 266   
D. 400   
E. 500   

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M96656

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