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1K views49 pagesOperation Management Full Test Bank PDF
Uploaded by
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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/ 49
indent Instructor: Assignment Chaps)
Submited: 0928/2 6:23am Course:
Book: Slack et al: Operations
Management 6e (Ch 1-21)
1 1) Acom photographic currently sells 3,400 portraits each year for an average price of £42. Fixed
operating costs are £92,000, whilst variable operating costs (associated with each portrait) are
currently £10. Calculate the current eamings before interest and tax.
b) John O'Reilly, the company director, has ambitious plans to double earnings before: interest and
tax (EBIT) over the next year, He has the option of investing an additional £45,000 ina‘matkgting
campaign to increase sales, If sales increase by 46% what will the new EBIT be? 2
Explanation of EBIT
(Round to nearest whole number.)
b)EBIT =£ 21,848"
(Round to nearest whole number.)
YOU ANSWERED: nothing
nothing
Page 1 7
Student: Instructor: “Assignment: ChapteQ-a ) }
Submitted: 09/28/12 6:23am Cours
Book: Slack et al: Operations
Management 6e (Ch 1-21)
2. 1) La Petit Patisserie, a small chain of pastry outlets in Belgium, had total operating costs of
€289,000. Having invested in a radio campaign, the conapany's sales have increased from €615,000
to €805,000. In addition to the one-off cost of €90,000 for the radio adverts, these extra sales have
added €54,000 in variable cost.
(@) What was the EBIT before the radio campaign?
(b) What are the EBIT after the radio campaign?
(©) By what percentage has EBIT improved/worsened as a result of the marketing campaign?
Explanation of EBIT.
2) Marie Leclere, the CEO of La Petit Patisserie, wants to see further increases in sales for the
coming year. She is considering whether to invest in another batch of radio advertising. The cost of
1 new radio campaign is €103,000 and she expects a 28% increase in sales. Ifthe sales growth is
as forecast, Marie expects variable costs to increase by €98,000. Given the current sales after her
first radio campaign:
(@ What would the new EBIT be if Marie goes ahead with the radio campaign?
(©) What percentage change would this represent compared to EBIT after her first radio campaign?
Explanation of EBIT
Q) @EBIT~€ 326,000"
(Round to nearest whole number as needed.)
() EBIT = € 372,000"
(Round to nearest whole number as needed.)
(o) Percentage Change as a result of the marketing campaign = 14,11"
(Round 10 two decimal places as needed}
@ @EBIT=€ 396,400"
(Round to nearest whole number as needed.)
(b) Percentage change compared to EBIT after first radio campaign = 6.56%
(Round to to decimal places as needed.)
YOU ANSWERED; nothing Stedene instrvior Assignments Chapa
Sebmitid 0976712 25am Course:
Banke Shot ak Opens
Managemen (Ch 21
2 nothing
(cont.) nothing
nothing
nothing 1 _
3. What are the input resources to any transformation process?
Information, materials and customers.
K®. Staff, facilities, materials, information and customers.
2S People and machines,
"30. Processes, people and parts.
The component transformation processes which together make up the macro-operation,
The more detailed activities carried out within operations.
Small operations.
© The other functions of the business.
__ YOU ANSWERED: nothing
5 Disneyland Paris is one of the largest and best known theme parks in Europe. In terms of the four
‘Vs (volume, variety, variation, visibility) how would you describe it?
4A High volume, low variety, high variation, high visibility
8. High volume, high variety, high variation, high visibility.
"1G. High volume, high variety, low variation, high visibility.
0. High volume, low variety, high variation, low visibility.
YOU ANSWERED: nothing
Page 3 ‘Assignment: Chapt
* Student:
‘Submitted: 09/28/12 6:23am
Books: Slack etl: Opecations
‘Management 6¢ (Ch 1-21)
6 Operations can be classified according to their volume and variety of production as well as by the
degree of variation and visibility, Which of the following operations would be classified as high
volume, low variety?
OA A family doctor
<2 A front office bank
2K. A fast food restaurant
A carpenter
YOU ANSWERED: nothing
1 Which of the following activities is NOT a direct responsibility of operations management?
GA. Designing the operation's products, services and processes.
Planning and controlling the operation,
«QC. Developing an operations strategy for the operation.
kD. Determining the exact mix of products and services that customers will want,
‘YOU ANSWERED: nothing _ et
Page4 ‘Student: Instructor: ‘Assignment: Chapte(1-3)
| Submitted: 09/28/12 6:46am Course:
Book: Slack et al: Operations
Management 6¢ (Ch 1-21)
1 Perfect Cup Cakes, based in New Jersey, USA, currently sells 100,000 cup cakes each year for an
average price of $1.63. Fixed operating costs are $21,000 and variable operating costs (pet cup
cake) are currently $0.67. Calculate the current earnings before interest and tax.
EBIT=$ 75,000
(Round to nearest whole number as needed.)
YOU ANSWERED: nothing
2. ‘Arnug manufacturer, based in Morocco, currently sells 330,000 rugs per year for an average price
of £2.17. Fixed operating costs are £240,000, and variable operating costs (per rug) are £0.75, The
manager of the firm has the option of investing £60,000 in new equipment which will improve
quality. This is expected to reduce variable costs to £0.48 and increase sales by 18%.
a) Calculate the current earings before interest and tax.
b) Calculate the new earnings before interest and tax if the manager invests in the new machinery.
Explanation of EBIT
a) EBIT =£ 228,600"
(Round to nearest whole number as needed.)
b) BBIT=£ 358,086"
(Round to nearest whole number as needed.)
‘YOU ANSWERED: nothing
nothing
3 ‘The three-stage operations model requires transformation of the input resource into some form of
output, Any one 'esour
A True
8 False
YOU ANSWERED: nothing
Page 1 (Student: - + Instructor: “Assignment: Chapte(1-B)
Sime: 090412 Gam Coss ee)
Seat Slack tat Option
Management (Ch)
4, Which one of the following transformational processes is not associated with the processing of
rials?
A. Physical properties
K®. Psychological state
6 Storage
32 Location
YOU ANSWERED: nothing
Operations typically differ in terms of volume of output, variety of output, variation in demand or
the degree of ‘visibility’ (i.e. customer contact) that they give to customers of the production
process. Short waiting tolerance is most closely matched to:
A Visibility
8 Volume
sy Variation
QO. Variety
_ YOU ANSWERED: nothing _
6. Which of the following is not a low-variety operation?
2A A tax consultancy advice service
(DR. Processing of credit card transactions
{20 Mass production of birthday cakes,
190. A jeans shop
(QE University lectures
Which of the following functions is NOT a core function of an organization?
A The marketing (including sales) function
<8. The accounting and finance function
yC. The operations function
~)0. The produetiservice development function
YOU ANSWERED: nothin, Student:
Tastrior anne Capek)
Submited: 0928/2 2:09am Covrse:
Book: Slack et al: Operations
‘Management 6¢ (Ch 1-21)
‘A Canadian printing firm has 14 employees and processes 519 re-print orders per week. All
‘employees work 8 hours per day, 5 days per week. Each week, the firm spends £4,578 on wages,
£1,479 on materials, and £566 on overheads, What is the firm's single-factor labour producti
(orders per hour) and what is its multifactor productivity (orders per pound)?
Explanation of Producti
Single-factor productivity = 0.93°
(Round t0 nwo decimal places as needed.)
Multi-factor productivity = 0.08"
(Round to two decimal places as needed.)
YOU ANSWERED: nothing
nothing _
Page | Instructor: ‘Assignment: Chapa)
[Students
|Submitted: 09/28/12 7:09am Course:
Book: Slack etal: Operations
Management 6¢ (Ch 1-21)
2. (1) A health-check clinic has seven employees and processes 206 patients per week. Each
employee works 31 hours per week. The clinic's weekly total wage bill is £3,911 and its total
overhead expenses are £1,804 per week. What is the clinic's single-factor labour productivity and
‘what is its multi-factor productivity’? ‘
(2) The health clinic has expanded by hiring one extra member of staff and now has cight
employees, Ithas also leased some new health-monitoring equipment which allows patients to be
processed faster. This means that its total output is now 283 patients per week. Its wage costs have
increased to £4,663 per week and its overhead costs to £3,249 per week, What is its single-factor
labour productivity and what its multi-factor productivity now?
Explanation of Productivity
a) Single-factor productivity + 0.95" patients per labour hour
(Round to two decimal places as needed.)
‘Multi-factor productivity = 0.04" patients per £
(Round to two decimal places as needed.)
(2) Single-factor productivity = 1.14 patients per labour hour
(Round to two decimal places as needed.)
‘Multi-factor productivity = 0.04" patients per £
(Round to two decimal places as needed.)
‘YOU ANSWERED: nothing
nothing
nothing
___ nothing
Page 2 (Student:
|Submitted: 09/28/12 7:09am
‘Assignment: Chapt 2A
Management 6e (Ch 1-21)
3. Hayes and Wheelwright developed a four stage model to evaluate the competitive role and
contribution of the operations function, An operation which is broadly up with the best in the
industry is said to:
(A. Be extemally supportive.
{28 Have achieved extemal neutrality.
«eC. Be intemally supportive.
2D. Have achieved internal neutrality.
YOU ANSWERED: nothing
4. There are five basic performance objectives which apply to all types of operation. They
OA Quality, speed, dependst
2 Quality, speed, dependability, flexibility, cost.
ty, flexibility, price.
QS Quality, speed, error-free, flexibility, price.
£50 Quality, speed, adaptability, flexibility, cost.
YOU ANSWERED: nothing
5. ‘A company which specializes in high variety and the frequent introduction of new
producis/services would seck to primarily focus on which of the performance objectives?
2 Quality
RC Flexibility
YOU ANSWERED: nothing
6 The main role of the operations function within the organization is to:
OA Produce products and services.
(k® Implement, support and drive strategy.
£30. Make things cheaply.
‘Do what the market requires.
Page 3 [Student « Tustructor: Assignment: Chapt 2-A)
|Submitted: 09/28/12 7:09am Course:
Book:
‘Management 6: (Ch 1-21)
The extemal effect of being good at quality, speed, dependability and flexibility is usually to
increase revenue, while the intemal effect is usually to reduce t.
A True
O8 False
YOU ANSWERED: nothing BEE Eet eee EEE
Page 4 Student: Tastruetor: Assignment: Chapter 2-B
Submitted: 09/28/12 7:14am Course:
‘Book: Slack etal: Operations
‘Management 6¢ (Ch 1-21)
L Quinntanna employees work a total of 538 hours each week, producing 8,750 scarves. In an
average week, 494 scarves are flawed and are sold as ‘seconds’ for $5, and the remaining 8,256
retail for $34, What is labour productivity per hour in terms of order and sales value?
5
Labour productivity (orders per hou) = 16.26"
(Round to two decimal places as needed.)
Janation of Producti
Labour productivity (sales value per hour) = $526.35
(Round to two decimal places as needed.)
YOU ANSWERED: nothing
Page 1 Seadent: Tustructor: “Assignment: Chapter 2B
Submitted: 09/28/12 7:14em Course:
Book: Slack et al: Operations
‘Management 6e (Ch 1-21)
2 ‘The accounts department at Equinox Inc. used to have 5 employees, each working 7 hours per day,
with overheads of £277 per day and wages of £350 per day. The team processed 450 invoices every
day.
Equinox recently invested in an ¢-invoice system, so now just 2 employees are required, with
wages of £175 per day, However, overheads now stand at £485 per day to cover the investment,
) Calculate the labour productivity (invoices per labour hour) of the old system and the new
system,
b) Whats the percentage change in Inbour productivity?
©) Calculate the multifactor productivity (invoices per pound) of the old system and the new
system.
4) Whats the percentage change in multifactor productivity?
Labour productivity (new system) = 32.14"
(Round to two decimal places as needed.)
'b) Labour productivity has risen significantly. The change is: 150°% (Round 10 the nearest whole
number.)
‘The percentage change in labour productivity is a 150% increase. (Round to the nearest whole
mumber.)
¢) Invoices per pound (old system) = 0.77
Invoices per pound (new system) ~ 0.68"
(Round to two decimal places as needed.)
d) The change is: 5°% (Round 10 the nearest whole number.)
The percentage change is a 6% reduction, (Round to the nearest whole number.)
‘YOU ANSWERED: nothing
nothing
nothing
nothing
Page 2 [Student: Instructor: “Assignment: Chapter 2-B
| Submitted: 09/28/12 7:14am Course:
Book: Slack et al: Operations
‘Management 6e (Ch I-21)
2 nothing :
(cont) nothing
nothing
aes nothing se EE =
‘An operation which is broadly up with the best in the industry is said to have achieved which of the
following?
A Intemal neutrality
£8 Extemally supportive
