Mid Term Exam

DISC230-20
Time Allowed: 90 min
Total Marks: 65
NAME: ROLL NO: _______________

NOTE: Attempt all questions. Do as Directed. Overwriting is not allowed.

This exam will start exactly at 6pm (Sunday 1st November) and will end at 7:30pm. You are directed
to upload on LMS by 7:45pm. No late submissions will be accepted.
You may opt to use word/Excel or paper to write answers. If you choose to write on paper then after
finishing the exam, take photos/scan pages and paste them in the word document to make it one
complete doc for uploading.
Don’t upload pictures in zip form. No marking for individual pictures.
The allowed 90 minutes are to answer the questions and additional 15 minutes are being allocated
for uploading the word doc/scanned copy of the answers (NO PDFs Please).
It is closed book exam and I expect an academic integrity from you over this exam and wish you good
luck!
Question 1:
A tourist center is open on weekends (Friday, Saturday, and Sunday). The owner-manager hopes to improve
scheduling of part-time employees by determining seasonal relatives for each of these days. Data on recent
traffic at the center have been tabulated and are shown in the following table:
WEEK

1 2 3 4 5 6

Friday 149 154 152 150 159 163

Saturday 250 255 260 268 273 276

Sunday 166 162 171 173 176 183

a. Develop seasonal relatives for the shop using the centered moving average method. (10)
b. Develop seasonal relatives for the shop using the SA method (8)
c. Explain why the results of the two methods correlate the way they do? (2)
Question 2:
A company must decide which type of machine to buy, and how many units of that type, given the following
information:
Type Cost

1 $10,000

2 14,000

1
Product demand and processing times for the equipment are:
PROCESSING TIME PER UNIT (minutes)

Product Annual Demand 1 2

001 12,000 4 6

002 10,000 9 9

003 18,000 5 3

a. How many machines of each type would be required to handle demand if the machines will operate 8
hours a day, 250 days a year, and what annual capacity cushion in processing time would result for
each? (13)

b. With high certainty of annual demand, which type of machine would be chosen if that was an important
consideration? With low certainty, which type of machine would be chosen? (2)

c. If purchasing and operating costs are taken into account, which type of machine would minimize total
costs, given your answer for part a? Operating costs are $6/hr for type 1 and $5/hr for type 2. (5)
Question 3:
Is it possible to achieve efficiency more than 100%? It is a fact that increase in efficiency also increases
utilization. Despite the fact that the upper limit on efficiency is 100%, are there any ways to increase the
level of utilization? (5)
Question 4:
The present situation due to Covid-19 is unprecedented and all business have already started thinking of
their operations strategy in the future. Keeping in view this pandemic, would you comment how this
pandemic would affect manufacturing business and what would be the best strategy of manufacturing
businesses during and after this pandemic? Also comment what type of forecasting technique
manufacturing firms should use to match the future demand?
Your answer should not exceed 600 words (1.5 - 2 pages). (10)
Question 5:
The manager of a seafood restaurant was asked to establish a pricing policy on lobster dinners.
Experimenting with prices produced the following data:
Average Number Price, x Average Number Price, x
Sold per Day, y Sold per Day, y
200 $6.00 155 $8.25
190 6.50 156 8.50
188 6.75 148 8.75
180 7.00 140 9.00
170 7.25 133 9.25
162 7.50
160 8.00
a. Plot the data and a regression line on the same graph. (5+2)
b. Determine the correlation coefficient and interpret it. (3)