Graduate School of Business

University/Academy: Arab Academy for Science & Technology and Maritime Transport
College: Graduate School of Business
Program: MBA in Business Administration
Course: Operations Management
Group: Alex .D.E. midterm exam
Lecturer: Dr. Abdulfatah Salem
Midterm exam Time: 3 hrs Jan 21, 2022

Question 1 (answer T/F) , justify your answers (5 marks)

1) The quantity of the Break-Even point take into consideration the time value of money
2) Forecasts more accurate for individuals vs. groups
3) The customer desires is one of the primary resources
4) One of the advantage of the executive opinion forecast is that the responsibility of the decision
is distributed among all the executives and no single person will be liable for any faulty forecast
5) Efficiency means performing activity well for least possible cost
6) Entertainment is one of the Physiological process types
7) In the weighted moving average forecast, weights are assigned ascending to the most recent
data.
8) The marketing is one of the organization function which is responsible for producing goods and
services
9) Variable costs are costs that continue even if no units are produced
10) In chase strategy the organization produces goods equal to the average demand
11) The best operating level is always greater than the theoretical capacity
12) The Strategic Decisions is a long term in nature
13) Physical model is that one representing the elements of a system using graphic symbols rather
than realistic pictures
14) In the associative forecasting, when the correlation factor go close to zero indicate strong
linear relationship between two variables
15) If resources are greater than required, excess idle time or poor efficiencies attained
16) One of the main differences between goods and services is that Customers participate in many
goods processes, activities, and transactions
17) Qualitative forecast used to predict future figures and quantities
18) Manual car wash is considered as with high percentage goods and low percentage service
19) HPPD is a measure used to evaluate the improvement in the nurses units, and it is calculated
as the percentage between total hours worked to the number of patients days
20) The best performance case for the operating units is when it have high capability even if it have
low capacity

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Question 2 (5 marks)
A T-shirts producer has been tracking the relationship between the advertising cost and the next
month’s sales.
Adv. Cost (Thousand EGP) Sales (Thousand EGP)

30 600

47 680

52 750

48 640

27 580

50 700
Required
 Determine if Adv. Cost can be used to predict the Sales, using the graphs as possible.
 If so,
o Derive a predictive equation.
o Predict for the value of Sales if Adv. Cost = 49
o Predict for the value of Sales if Adv. Cost = 35

Question 3 (5 marks)
The following is the average number of beds booked per day over 12 years in Andalusia Hospital
Week 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Num. 43 45 49 48 51 52 56 67 62 60 64 66
The manager intends to install new beds when the average daily booking exceeds 75 beds per day. In
what year will the average daily booking exceed 65 beds per day?

Question 4 (5 marks)
The cleaning department of Andalusia Hospital uses a 2-week weighted moving average to predict the
use of hygiene equipment in the main hospital building.
The following table is the result of the forecasting tool used.
Week 1 2 3 4
Actual usage 5 4 6
Forecast usage - - 4.4
Forecast for week 4.

Question 5 (5 marks)
The United Arab Carpet Co. employs two labors, each working 10 hours per day. Each labor
produces four carpets per day. The company’s payroll cost for the labors is EGP 500 per day, and there
is a daily overhead expense of EGP 300.

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a. Compute the labor productivity (carpets/hr).

b. Compute the multifactor productivity, using carpets per EGP cost as the measure.
The company is considering the purchase of new facility for the carpets production. The facility will
enable each labor to produce six carpets per day, although the overhead expense will increase to EGP
400.
c. Compute the new labor productivity.
d. Compute the new multifactor productivity.

Question 6 (5 marks)
An investor is considering two different investment alternatives. Investment A has an initial cost
of EGP 17,000, and investment B has an initial cost of EGP 25,000. Both investments have a useful life
of 4 years. Considering interest rate is 8%, the annual cash flow is EGP 9500 for investment A and is
EGP 11500 for investment B.
What is the best choice for the investor?

with my best wishes

Dr. Abdulfatah Salem