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QSO 600 Operations Management Final Exam

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QSO 600 Operations Management Final Exam

 

Problem 1.

Arsenal Electronics is going to construct a new $1.2 billion semiconductor plant and has selected four towns in the Midwest as potential sites. The important location factors and ratings for each town are as follows:

Scores (0 to 100)

Location Factor

Weight

Abbeton

Bayside

Cane Creek

Dunnville

Work ethics

 

80

90

70

75

Quality of life

 

75

85

95

90

Labor laws/unionization

 

90

60

60

70

Infrastructure

 

60

50

60

70

Education

 

80

90

85

95

Labor skill and education

 

75

65

70

80

Cost of living

 

70

80

85

75

Taxes

 

65

70

55

60

Incentive package

 

90

95

70

80

Government regulations

 

40

50

65

55

Environmental regulations

 

65

60

70

80

Transportation

 

90

80

95

80

Space for expansion

 

90

95

90

90

Urban proximity

 

60

90

70

80

 

Recommend a site based on these location factors and ratings.

 

Problem 2.

Sawyer Furniture is one of the few remaining domestic manufacturers of wood furniture. In the current competitive environment, cost containment is the key to its continued survival. Demand for furniture follows a seasonal demand pattern with increased sales in the summer and fall months, culminating with peak demand in November.

The cost of production is $16 per unit for regular production, $24 for overtime, and $33 for subcontracting. Hiring and firing costs are $500 per worker. Inventory holding costs are $20 per unit per month. There is no beginning inventory. Ten workers are currently employed. Each worker can produce 50 pieces of furniture per month. Overtime cannot exceed regular production. Given the following demand data, use Excel Solver to design an aggregate production plan for Sawyer Furniture that will meet demand at the lowest possible cost.

 

.........COMPLETE SOLUTIONS FOR QUESTIONS 3, 4 & 5 INCLUDED  

QSO 600 Operations Management Final Exam Problem 1. Arsenal Electronics is going to construct a new $1.2 billion semiconductor plant and has selected four towns in the Midwest as potential sites. The important location factors and ratings for ea
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