Question

*For operations management statistics practice quiz-please just list the answers:

1) A production process has six subsequent stages, each with their own specific resources and performing crucial tasks. Four of these stages have a capacity of 20 units per hour, while the other two stages have a capacity of 10 units per hour. What is the best conclusion?

The two stages with a capacity of 10 units per hour should be eliminated from the process.

Both stages with a capacity of 10 units per hour can be considered bottlenecks.

The four stages with a capacity of 20 units per hour can be considered bottlenecks.

There are no bottlenecks in this production process.

2) A production process has six stages, each with their own specific resources. If the stage with the lowest capacity (i.e., the bottleneck) has a capacity of 10 units per hour, then:

The production process has a capacity of 10 units per hour

The production process has a capacity of less than 10 units per hour

The production process has a capacity of more than 10 units per hour

The production process can have any capacity, depending on the other stages

3) KiNE's days that payments are outstanding are 40, their days that sales are outstanding are 50, and their cash conversion cycle is 60 days. How long do items spend in inventory at KiNE's? Assume a year has 360 days

60 days

210 days

40 days

50 days

4) At Amsterdam's Glue-Less coffee joint, you wait, then you are seated at a table, then you leave. The wares are so cheap that on average a person has to wait 20 minutes before getting a table. On average there are 12 people waiting and 24 customers actually at tables. How long does a person spend, on average, at a table (not including waiting)?

30 minutes

60 minutes

15 minutes

40 minutes

5) To properly analyze a Little's Law problem, you should:

Identify the number of stages in the supply chain.

Always remember that it only applies to manufacturing companies.

Draw a picture, draw a picture, PLEASE draw a picture!

Be familiar with really advanced mathematics.

6) A local grocery store has five cashiers that can each help a customer in, on average, 5 minutes. On average, 120 customers arrive at the grocery store per hour. What is the (implied) utilization for each cashier?

200%

50%

120%

100%

7) If the arrival rate equals 12/hr, then

The processing time is on average 12 minutes

The average interarrival time equals 5 minutes

The utilization is 8% (i.e., 100% / 12)

The capacity of that resource is also 12/hr

Answer 1

1)

The capacity of the process = lowest value among the capacity of stages of process = minimum (20, 20, 20, 10, 10) = 10 units per hour

Thus the stages with capacity of 10 units/hour limit the process capacity and they are bottleneck processes.

Correct Answer: Both stages with a capacity of 10 units per hour can be considered bottlenecks.

2)

The capacity of the process = lowest value among the capacity of stages of process

The stage with the lowest capacity has an capacity of 10 units and limits the process capacity to 10 units

Correct Ans:

The production process has a capacity of 10 units per hour

3.

The Cash conversion Cycle formula is given as follows:

CCC=DIO+DSO−DPO

where:

DIO=Days of inventory outstanding

(also known as days sales of inventory)

DSO=Days sales outstanding

DPO=Days payables outstanding ​  

Given: CCC = 60 days

DSO = 50 days

DPO = 40 days

Thus, 60 = DIO + 50 – 40

DIO = 40 days

Item spends 40 days in inventory

Ans: 40 days

4.

Apply Little’s law problem for the given situation:

Inventory (WIP) = Throughput rate (R) x Flow time (T)

WIP (# of customers in stage) = R (customers per minute) x T (processing time per customer)

WIP = R x T	Waiting stage	Dinning Stage
Throughput Rate (R) (applicants/minutes)	R = WIP/T = 12/20 = 0.6 customers per minute	From waiting stage the throughput rate is 0.6 customers per minute
Flow time (in minutes)	T = 20 minutes of waiting	T = WIP/R = 24/0.6 = 40 minutes per customers
Inventory (WIP) (# of applicants)	WIP = 12 customers are in waiting stage	WIP = 24 customers are in Dinning stage

Person spends on an average 40 minutes on table (dinning)

ANS: 40 minutes