EMLYON Business School

Economics, Finance and Control Department

MT15
OPERATIONS & SUPPLY CHAIN MANAGEMENT
Final Examination

Contents:
Section A 30%
Section B 40%
Section C 30%

Instructions:
Section A: Multiple choice questions
Section B has choice: Answer the two calculation exercises
Section C has choice; Answer only 3 questions

Course Materials: slides, laptops, books are not allowed

Dictionary, translator, calculator are allowed

Examination Duration: 2 hours

Section A
PART 1: PRODUCT DESIGN AND INNOVATION
Multiple Choice Questionnaire (choose the right answer):
QUESTION ANSWER 1 ANSWER 2 ANSWER 3 ANSWER 4 YOUR
CHOICE
Concurrent A technique of An outsourcing of A synonym of A way of designing
engineering is… competitive engineering activities “business process consistently product,
intelligence reengineering” production system and
distribution system
Time-to-market is… A business process, A maintenance The time elapsed A count-down before
like order-to-cash or indicator, like time-to- between the first idea product launch
purchase-to-pay repair, and time- of a new product, and
between-failures the first item sold
Users are… All the persons The persons who pay The stakeholders of a The final consumers
impacted by a good or for the good or service process
a service
Product life-cycle… Highlights the Is a net present value Features the phases Consists of recycling
successive calculation of a new of a product from components and
technologies used in product project market introduction to material after end-of-
manufacturing removal life
Mass customization Massive importation of Easiness to tune one’s Late differentiation or Last phase of a life-
can take the form of… products own software configurable products cycle, when every
products have become
standards

PART 2: QUALITY
Multiple Choice Questionnaire (choose the right answer):
QUESTION ANSWER 1 ANSWER 2 ANSWER 3 ANSWER 4 YOUR
CHOICE
Quality is… A synonym of “high- The ability to meet A functional feature of The contrary of
end” customer expectations a product productivity
Functional All costing elements All expected behaviors All tests to be All technical details
specification impacting a product of a product performed on a about a product
describes… product
Total Costs of Quality Launch, Growth, Immediate R&D Prevention, appraisal, Manufacturing and
balances… Stabilization and expenses, and future and failure costs delivery costs
Decline costs profit from sales
ISO 9000 is… A set of international A mandatory A set of international A set of European
standards on quality international quality standards on standards on quality
certification environment
Acceptance sampling Guessing if a batch is Reducing the overall Special authorization Delivering a product
allows for… conforming after duration of tests to deliver discounted only if tested
checking a sample non-conforming successfully
products

PART 3: LEAN AND PRODUCTIVITY

Multiple Choice Questionnaire (choose the right answer):
QUESTION ANSWER 1 ANSWER 2 ANSWER 3 ANSWER 4 YOUR
CHOICE
Toyota Production The name of the A division of Toyota A managerial and A product costing
System is… suppliers network of producing automatic technical approach to method invented by
Toyota machines manage quality and Toyota
productivity
Six Sigma is… A Japanese acronym A law of probability A technique based on A list of six questions
meaning “collect, sort, statistical analysis to to find out root-causes
eliminate, clean, order, improve processes
label”
In Japanese, a fool- Poka-yoke Nikkei Ishikawa Kaizen
proof device is
called…
PDCA means… Preliminary Document Product Design and Process Development Plan, Do, Check, Act
for Conformity Criticality Analysis with Concurrent
Acceptance Approach
The technique for Value creation Value analysis Value added Value chain
prioritizing functional
requirements is
called…

PART 4: NEW TRENDS IN SUPPLY CHAIN

Multiple Choice Questionnaire (choose the right answer):
QUESTION ANSWER 1 ANSWER 2 ANSWER 3 ANSWER 4 YOUR
CHOICE
Energy consumption Is proportional to Decreases when using Represents an always Is reduced with just-in-
in transportation… carbon dioxide slow and massified increasing percentage time delivery
emission transportation modes of the cost of goods
RFID is a technique Remotely reading Quick passport control Printing barcodes on Mobile
allowing for… information conveyed at airports stickers telecommunication
with the product
“End-of-life” in a Returning the product Repairing the product Throwing it away Recycling elements of
product life-cycle to its production site and selling it on the product so as to
means… second-hand market produce new goods
Deliveries in urban Increase because Be banned by Disappear when most Be modified by
areas will… more consumers live environmental of production moves to globalization
in towns regulations countryside
International Pollutes more than Is a consequence of Requires risk Is very expensive
logistics… domestic logistics globalization management skills

PART 5: Flow Management

Multiple Choice Questionnaire (choose the right answer):
QUESTION ANSWER 1 ANSWER 2 ANSWER 3 ANSWER 4 YOUR
CHOICE
Demand for a given the item has several there is a deep bill of the finished products there is a clearly
item is said to be childre material are mostly services identifiable parent
dependent if (rather than goods)
A master production the financial resources what component is to what product is to be the labor hours
schedule specifies required for production be made, and when made, and when required for productio

The ______ is the bill of materials net requirements char inventory record assembly time char
input to Materials
Requirements
Planning which lists
the assemblies,
subassemblies, parts
and raw materials
needed to produce
one unit of finished
product
Each X requires 2 of 48 7 8 10
component Y; each Y
requires 4 of part Z.
The lead time for
assembly of X is
1 week. The lead time
for the manufacture of
Y is 1 week. The lead
time for the
procurement of Z
is 6 weeks. The
cumulative lead time
for X is _____ weeks
The MPS calls for 110 150 170 300 320
units of Product M.
There are currently 30
of Product M on hand.
Each M
requires 4 of
Component N. There
are 20 units of N on
hand. The gross
requirements for N ar
The number of units net requirement scheduled receipt the projected usage of the amount projected
projected to be the item to be on hand
available at the end of
each time period
refers t

Section B: The calculation section is composed of two parts that you have to
answer. Please answer both parts

Part 1/2: EOQ exercise

The Rahway, New Jersey, plant of Metalcase, a manufacturer of office furniture, produce metal desks
at a rate of 200 per month. Each desk requires 40 Phillips head metal screws purchased from a supplier
in North Carolina. The screws cost 3 cents each. Fixed delivery charges and costs of receiving and
storing shipments of the screws amount to about $100 per shipment, independent of the size of the
shipment. The firm uses a 25 percent yearly interest rate to determine holding costs. Metalcase would
like to establish a standing order with the supplier and is considering several alternatives. What
standing order size should they use? (all EOQ assumptions are well verified)

Part 2/2: MRP exercise

A firm makes a product (Item A) from three components (Items B, C, and D). The latest MPS (Master
Production Schedule) for product A calls for completion of a 250-unit order in week 8, and its lead time is 2
weeks. The master schedule and bill of material for Product A are given below.
 Item: End Item A

Week
1 2 3 4 5 6 7 8
Gross Requirement 250

Develop a material requirements plan for items B, C, and D, given the following inventory data. Blank MRP
records are also provided.

ITEM

Data Category B C D
Lot-sizing rule L4L Minimum Realease:1000 L4L
Lead time 2 weeks 1 week 3 weeks
Scheduled receipts None 1000( in week 1) None
Beginning inventory 0 200 0

Application Supplement

Item: End Item A

Week
1 2 3 4 5 6 7 8
Gross Requirements 250

Item: Lot size: Lead Time:

Week
1 2 3 4 5 6 7 8
Gross Requirements
Scheduled Receipts
Projected On-hand
Inventory
Net Requirements
Planned Order
Receipts
Planned Order
Releases
 Item: Lot size: Lead Time:

Week
1 2 3 4 5 6 7 8
Gross Requirements
Scheduled Receipts
Projected On-hand
Inventory
Net Requirements
Planned Order
Receipts
Planned Order
Releases

Item: Lot size: Lead Time:

Week
1 2 3 4 5 6 7 8
Gross Requirements
Scheduled Receipts
Projected On-hand
Inventory
Net Requirements
Planned Order
Receipts
Planned Order
Releases

Section C
Answer any three of the questions that follow after carefully reading through them. Note that each
question has different requirements and components; each question also only calls for short, concise
answers rather than essays.
1. Do you think that a transportation system can be reliable without track-and-trace ? Whether you
answer “yes” or “no”, give arguments which support your views.
2. Do you think that Toyota Production System is applicable in any kind of industry ? Whether
you answer “yes” or “no”, give arguments which support your views.
3. Do you think that producing with a better quality implies higher production costs ? Whether
you answer “yes” or “no”, give arguments which support your views.
4. Outline a strategic, tactical and operational decision. Discuss, with an example, how these are
linked?
5. Discuss with examples the difference between make-to-stock and make-to-order strategies in
OM. Why would an organization choose either of these?

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