Please solve these 5 multiple choice questions below q2-q6 below

Q 2) Rocky's Recycling refurbishes old workboots for resale. Rocky has won a contract which requires delivery of 2,000 refurbished boots (1,000 pairs) per week. How many hours per week will Rocky have to operate to fulfill this contract? (Assume process is at steady state.)

THe following sequential process uses one worker per task.

Task	Description	Time required/boot
1	Unpack and inspect boot	1.0 minute
2	Remove laces and heel taps	1.5 minute
3	Scrub and clean boot	0.8 minute
4	Insert new laces	1.0 minute
5	Add heel taps, polish and pack	1.2 minute

QUESTION 3

Consider the Toffee, Inc case. The total annual demand for all raw materials has not changed. Because of inflationary pressures, the prices of all raw materials have increased for all order quantity levels. What effects will this have on the EOQ?

I. Order size will increase

II. Holding costs will increase

III. Ordering costs will decrease

IV. Average inventory level will decrease

V. Total annual costs for the inventory system will increase.

	a.	IV only
	b.	II and V only
	c.	II and III only
	d.	I, II and IV
	e.	II, IV and V only
	f.	III only
	g.	I only
	h.	II only
	i.	I and II only
	j.	V only

QUESTION 4

It is costly to hold inventory (e.g., storage costs, obsolescence costs, etc.) but inventory can also be useful in a process because.

Adding inventory to a process will shorten the average time a unit spends in a process.

Adding inventory to a process can increase the capacity of the process.

Adding inventory to a process is likely to increase quality

None of the above are correct.

	a.	I only
	b.	I and III only
	c.	I, II and III
	d.	III only
	e.	II only
	f.	II and III only
	g.	IV only

QUESTION 5

A small manufacturer, Company A has begun to compete against Apple providing cell phones in its local market. The following table contains information on performance in this local market for the last year.

	Apple Local market only	Company A Local market only
Revenue	48, 213	34,342
Cost of Goods Sold	36, 098	23,372
Operating Income	2,412	2,156
Average Inventories	3,840	4,375
Order lead time	4 days	5 days

WIndi

Which of the following are true?

I. These numbers indicate that Company A is carrying more inventory than is needed for this local market.

II. These numbers indicate that Apple is carrying more inventory than is needed for this local market.

III. These numbers indicate that Company A is more effective and efficient at generating sales from resources.

IV. There is not enough information to draw conclusions about the relative performance of Apple and Company A in this local market.

		III only
		II and III
		II only
		IV only
		I and II
		I and III
		I only

QUESTION 6

Toffee, Inc is negotiating with a supplier for an ingredient in a new line of bars. Like the other ingredients, this supplier also provides quantity discounts. Shown below. What would be the total annual cost of ordering from this supplier including product cost, using EOQ system? Toffee is forecasting sales of 100,000 bars the first year with 20g of chips per bar.

Cost Data for Flavoured chips

Holding cost 45%

Ordering cost (INR/order) 2500

Quantity in kg Price (INR/kg)

1 to 150 300

151 to 300 250

301 to 500 200

above 500 150