Midterm Exam
Illustrative Exam 11
Solutions
BUAD311 – Operations Management
Section A: Multiple Choices (circle only one)
1. Which of the following statement is correct?
a. Make-to-order systems are better than make-to-stock systems.
b. Make-to-stock systems are better than make-to-order systems.
c. Hybrid systems are perfect and better than both MTO and MTS systems.
d. Hybrid systems are worse than both MTO and MTS systems.
e. None of the above
e): It is hard to tell which one is better between MTO and MTS. Each has its pros and cons. The answer really depends on the settings, i.e. customer demands and operating cost.
2. According to Little’s Law, a restaurant owner may increase the revenue by
a. reducing the throughput rate
b. having larger space and higher WIP
c. having smaller space and lower WIP
d. increasing the time customers staying in the restaurant
e. None of the above
b): The manager actually wants to increase the Flow Rate (Throughput Rate).
3. To improve the utilization rate, we can
I: Cross-train the workers
II: Adopt flexibility equipment
III: Shift from MTS systems to MTO systems
Choose the most appropriate.
a. I
b. II
c. III
d. I and II
e. I, II, and III
d): MTO and MTS have nothing to do with the utilization, since utilization is a concept for AVERAGE. Cross-trained workers and flexible equipment belong to the same concept—convertible resource, which can improve utilization.
4. Comparing make-to-order systems and make-to-stock systems, which of the following statement is false?
a. Make-to-order systems are more responsive to the customer needs.
b. Make-to-order systems have lesser or no finished-goods inventory.
c. Make-to-stock systems can fulfill customer demand faster
d. Make-to-stock systems usually have a lower utilization rate than made-to-order systems.
e. IN-N-OUT burger is a make-to-order restaurant.
d)
5. Consider a business process with multiple stages. The utilization rate of the bottleneck resource
Solutions
BUAD311 – Operations Management
Section A: Multiple Choices (circle only one)
1. Which of the following statement is correct?
a. Make-to-order systems are better than make-to-stock systems.
b. Make-to-stock systems are better than make-to-order systems.
c. Hybrid systems are perfect and better than both MTO and MTS systems.
d. Hybrid systems are worse than both MTO and MTS systems.
e. None of the above
e): It is hard to tell which one is better between MTO and MTS. Each has its pros and cons. The answer really depends on the settings, i.e. customer demands and operating cost.
2. According to Little’s Law, a restaurant owner may increase the revenue by
a. reducing the throughput rate
b. having larger space and higher WIP
c. having smaller space and lower WIP
d. increasing the time customers staying in the restaurant
e. None of the above
b): The manager actually wants to increase the Flow Rate (Throughput Rate).
3. To improve the utilization rate, we can
I: Cross-train the workers
II: Adopt flexibility equipment
III: Shift from MTS systems to MTO systems
Choose the most appropriate.
a. I
b. II
c. III
d. I and II
e. I, II, and III
d): MTO and MTS have nothing to do with the utilization, since utilization is a concept for AVERAGE. Cross-trained workers and flexible equipment belong to the same concept—convertible resource, which can improve utilization.
4. Comparing make-to-order systems and make-to-stock systems, which of the following statement is false?
a. Make-to-order systems are more responsive to the customer needs.
b. Make-to-order systems have lesser or no finished-goods inventory.
c. Make-to-stock systems can fulfill customer demand faster
d. Make-to-stock systems usually have a lower utilization rate than made-to-order systems.
e. IN-N-OUT burger is a make-to-order restaurant.
d)
5. Consider a business process with multiple stages. The utilization rate of the bottleneck resource