THE INTERNATIONAL UNIVERSITY (IU) – VIETNAM NATIONAL UNIVERSITY – HCMC
FINAL EXAMINATION
Date: 01/15/2021
Duration: 120 minutes
Student ID: .................................. Name:................................................
SUBJECT: Production and Operations Management
Dean of School of Business Lecturers:
Signature: Signature:
Dr. Truong Quang Duoc
Full name: Dr. Trinh Viet Dung Mr. Nguyen Nhu Tung
Dr. Nguyen Nhu Ty
GENERAL INSTRUCTION(S)
1 This is open book online examination.
2. Your answer will be submitted in Blackboard
3. Your webcam must be turned on during the examination time
4. The due time to submit this test in Black Board is 3:00 PM
SECTION I – WRITING (20 POINTS) You can choose either Question 1.a) or Question 1.b) to answer
Question 1.a): What are the contributions of inventory management to organizational cost strategy? Give your
explanations
Question 1.b): What is the objective of logistic management? How to develop an effective logistic
management?
Hint: Give short answer, no need to write essays.
SECTION II – PROBLEMS
Problem 1 (25 points):
A furniture company is designing a product layout for a new product. It plans to use this production line eight
hours a day in order to meet a schedule of 400 units per day. The tasks necessary to produce this product are
detailed in the table below:
Task Predecessor Time (seconds)
A - 50
B A 36
C - 26
D - 22
E B, D 70
F C, E 30
1
a) Draw the network described in the table.
b) Without regard to a production schedule, what is the minimum possible cycle time (in seconds) for this
situation; what is the maximum?
c) What is the required cycle time (in seconds) in order to meet the schedule?
d) What is the theoretical minimum number of workstations needed to meet the schedule?
e) Balance this line using longest processing time.
f) What is the efficiency of the balance obtained in part e?
Problem 2 (20 points):
The times required to complete each of eight jobs in a two-machine flow shop are shown in the table that
follows. Each job must follow the same sequence, beginning with machine A and moving to machine B (A to
B).
a) Determine a sequence that will minimize makespan time.
b) Construct a chart of the resulting sequence, and find the machine B’s idle time.
c) For the same sequence determined in part a, how much would machine B’s idle time be reduced by
splitting the last two jobs in half?
Hint: splitting means divide the time to 2; e.g., splitting activity e means in Machine A: e1 =1; e2=1 and in
Machine B: e1=7; e2=7)
Machine A Machine B
Job (minutes) (minutes)
a 16 5
b 3 13
c 9 6
d 8 7
e 2 14
f 12 4
g 18 14
h 20 11
Problem 3 (15 points):
Loving Money Inc. is a company doing business about frozen fish. They are now running inventory.
Each year, the average demand is 8,000 units of fish (each unit is like a 20-ft-container). Ordering cost
is $800; holding cost is $100 per unit per year.
a. Calculate: minimum units to minimize the total cost
b. Due to bad condition, holding cost is now $120 (not $100), and demand is now at 6,000 units;
calculate the optimal quantity per each order.
Problem 4 (20 points)
Consider the bill of material for Product J and the data given in the following table. The gross requirements for
J are 200 units in week 6 and 250 units in week 8 with setup cost is $400 per order and holding cost $1.
Develop the MRP tables for each item for a 9-week planning period.
2
Item Lead Time Quantity on Hand Scheduled receipts Lot size rule
J 1 50 EOQ
K 2 20 30 in week 5 Lot-for-lot
L 2 300 100 in week 3 Lot-for-lot
M 1 50 200 in week 5 Lot-for-lot
Good luck.
