Instructions for the Final Exam
This exam is a “take home” exam that has 4 questions, each question is worth 50 points. During the exam I will not answer “course material” questions…it is an exam. However, if you have any questions about the exam…please let me know.
This exam is due no later than NOON on Friday, August 6th. You will need to return your exam via e-mail to me…. with attachments of the exam Word document and any “evidence” information.
I will not accept late exams.
Final Exam Set-Up and Turn-in Instructions
Just like the other exams, there are TWO instructional” statements on this exam. These are the same as you have had on the past exams.
First Statement:
You must submit evidence of your solution with your exam.
This statement indicates that you must provide the MS 6.0 solution and were asked to “show your work” … take a picture (or screenshot) of your work and either insert the photo into the Word document ….or…. attach the photo to the e-mail when you turn in the exam. Either way is fine, I just need to see your work.
Second Statement:
This statement indicates where I want you to “TYPE” your answer below the question. Use as much space as you need to answer the question completely.
And finally, in your e-mail when you return the exam, please include the following claim:
“I Promise this is my work.”
😊…Thank you!
“Par Inc.” is a golf ball manufacture. They are making plans for the 2022 production cycle for their most popular golf ball the “GOLONG”.
The following “FOUR” questions are designed to assist in this analysis.
As an end-of-the-semester gift, ….. I will let you skip either question 1 or 4.
I wish you well……😊.
For the question you skipped, I will award you a perfect score of 50 points.
Question 2 and 3 “share” information so, please do not skip them.
QUESTION #1 – 50 Points
Occasionally “Par Inc.” accepts a special order for “LOGO” GOLONG golf balls. These are customized golf balls that occur rarely and need to be manufactured in small batches.
The firm’s estimated quarterly demand for the “LOGO” ball is 200,000 balls. They have an annual production capacity that is estimated to be your student ID# (wow what a coincidence). For example, if your ID# is W01085206, then use 1,085,206 for the number of golf balls produced in a year. To add the “LOGO” to the golf ball Par Inc. will need to rent a machine that will cost $5000.00 each time they produce these special orders. The holding cost for each golf ball is relatively cheap, 5% of the cost of goods sold (COGS) and “LOGO” golf balls COGS is $1.50.
Golf is almost a year-round sport, so the plant operates 300 days a year. Furthermore, Par Inc. prides itself on quality, they estimate that the average defect rate for “LOGO” golf balls is only 5%. Since Par Inc, always has production materials for golf balls, the only special material that needs to be order is the logo itself and these take 3 days to receive from the Art Department.
Mr. Porky Pig is Par Inc.’s V. P. of Production. He needs your assistance in developing a 2022 inventory policy for the “LOGO” golf balls.
Provide the MS 6.0 solution for Par Inc.’s production problem. You must submit your MS 6.0 solution with your exam.
Answer the following questions:
How many golf balls should be produced per batch?
Please type your answer here.
What is the number of production runs per year?
Please type your answer here.
What is the time between production runs?
Please type your answer here.
What is the length of production and non-production time?
Please type your answer here.
Identify and briefly explain the “3 Budgets of Inventory”.
Please type your answer here.
Determine the re-order point for the logos needed from the Art Department.
Please type your answer here.
If the variance for golf ball inventory is 160,000 units. What safety stock levels should “Par Inc.” manufacture if they want to maintain at least an 10% stockout rate but no more than a 5% stockout rate?
You must submit evidence (show your work) of your solution with your exam.
Provide Mr. Porky Pig with a “2 Paragraph MEMO” that identifies and explains your suggested 2022 inventory policy of the “LOGO” golf ball.
As part of your answer, include at least two qualitative criteria and two quantitative criteria that helped you determine your inventory policy.
Memo to V.P. for Production: (at least 2 GREAT paragraphs)
Dear Mr. Porky Pig,
Please type your answer here.
QUESTION #2 – 50 Points
The website, “Marvin’s Golf Hut.com”, is the largest national retailer of the “GOLONG” golf ball. They are trying to determine the inventory policy for “boxes” of GOLONG balls. Each box has a dozen balls, but for this analysis consider “boxes” and not individual golf balls. It is estimated that the website will sell (use your student ID # here…for example if your ID# is W01085206, then use 1,085,206) boxes of balls this year, and since it is a website, we operate 365 days a year.
Marvin is one of the exceptionally large customers for Par Inc.’s GOLONG golf balls, so he gets a reduced price of $25.00 per dozen and Par Inc. only charges him $5.00 to place an order. Marvin also gets expedited delivery at no extra charge, and Par Inc. promises that any order delivered to Marvin’s warehouse will have a lead-time of only 3 working days: 1day to receive the order, 1 day to process the order, and then 1 day to ship to the warehouse. In addition, every order is “guaranteed” to be 100% correct.
Marvin’s warehouse manager, Mr. Marvin the Martian, estimates that the per-unit holding cost is 2% of the price we paid for each dozen.
Provide the MS 6.0 solution for “Martin’s” inventory problem. You must submit your MS 6.0 solution with your exam.
Answer the following questions:
What is the most efficient order size?
2947 boxes
What is the number of orders per year?
1,085,206 / 2947 = 369 orders per year
What is the amount of time between orders?
365/369 = 0.989 days
Identify and briefly explain the “3 Budgets of Inventory”.
Raw Material Budget: is made to calculate material to be purchased. It is calculated from production budget and after considering any opening and closing inventory of raw material.
Ending Finished Goos Inventory Budget: is prepared using unit cost of product and considering any units produced during previous period remaining in closing inventory.
Production Budget: identifies units to be produced taking into account projected sales of the period.
Determine the re-order point for the GOLONG golf ball?
2973.17 / 3 = 991.06 boxes
Assume the standard deviation of Marvin’s inventory is 250 boxes. What is the “safety stock” at the 80th and 95th percentile? What is the probability of stockout if the safety stock policy is only 350 boxes?
You must submit evidence (show your work) of your solution with your exam.
Provide Mr. Martian with a “2 Paragraph MEMO” that provides and explains your suggested 2022 inventory policy of the Marvin golf ball problem.
As part of your answer, include at least two qualitative criteria and two quantitative criteria that helped you determine your policy.
Memo to the Warehouse Manager: (at least 2 GREAT paragraphs)
Dear Marvin,
Please type your answer here.
QUESTION # 3 – 50 Points
Since “Marvin’s Golf Hut” has been a long-standing customer and management has deemed them to be a “2022 Preferred Customer”. This entitles Marvin to discounts that are unavailable to most of Par Inc.’s customers. The Par Inc. sales representative (AKA “The TAS”) has offered a special price if the Marvin buys additional boxes of golf balls. The discount categories and their respective price breaks are as follows:
Category # of boxes % Discount
1 3,000 or less 0
2 3,001 – 10,000 20
3 10,001 or more 30
Use the information in question 2, to provide solution for Par Inc.’s quantity discount offer.
Provide the MS 6.0 solution for “Martin’s” quantity discounts inventory problem.
You must submit your MS 6.0 solution with your exam.
Should Marvin’s Golf Hut accept “The TAS’s” offer and should the inventory policy you recommended in question 2 changed, if so why? Provide Mr. TAS with a “2 Paragraph MEMO” that explains your decisions.
Dear TAS,
QUESTION # 4 – 50 Points
In 2021, “Par Inc.” used one “very old” machine that imprints the “LOGO” on each golf ball. The LOGO manager, Mr. SAM, has determined that the golf balls arrive to the machine at the rate of 10 per minute and it only takes 5 seconds for the machine to place the “LOGO” on each golf ball. This machine is paid for and will only require $10,000 for maintenance. Below is an illustration of the “OLD Manual System”.
To assist Mr. SAM, you will need to determine the answer the following waiting-line theory questions:
Provide the MS 6.0 solution for Par Inc.’s “OLD” machine. You must submit your solution with your exam.
Answer the following questions:
What is the probability that operations at the machine are idle?
0.50
What is the probability that 4 golf balls are in Queue?
0.015625
What is the average number of golf balls in Service?
1
What is the average time a golf ball will spend in Service?
1
What is the probability that an arriving golf ball will have to wait?
0.50
For 2022, Yosemite Sam has proposed that Par Inc. purchase a NEW machine that will reduce the time needed to put the logo to each ball IN HALF!!! However, the new machine will cost $1,000,000, but will have no maintenance cost. Below is an illustration of the “NEW Automated System”.
To assist Mr. Sam, you will need to determine the answer the following waiting-line theory questions:
Provide the MS 6.0 solution for Par Inc.’s “NEW” machine. You must submit your solution with your exam.
Answer the following questions:
What is the probability that operations at the machine are idle?
Please type your answer here.
What is the probability that 4 golf balls are in Queue?
Please type your answer here.
What is the average number of golf balls in Service?
Please type your answer here.
What is the average time a golf ball will spend in Service?
Please type your answer here.
What is the probability that an arriving golf ball will have to wait?
Please type your answer here.
Write a “2 Paragraph Memo” to Mr. SAM explaining your choice of either the “OLD” machine or the “NEW” machine.
Memo to Mr. Yosemite Sam:
Dear Mr. SAM,
Please type your answer here.
“I Promise this is my work.”
Instructions for the Final Exam
BMGT 3371 Summer 2021
This exam is a “take home” exam that has 4 questions, each question is worth 50 points. During the exam I will not answer “course material” questions…it is an exam. However, if you have any questions about the exam…please let me know.
This exam is due no later than NOON on Friday, August 6th. You will need to return your exam via e-mail to me…. with attachments of the exam Word document and any “evidence” information.
I will not accept late exams.
Final Exam Set-Up and Turn-in Instructions
Just like the other exams, there are TWO instructional” statements on this exam. These are the same as you have had on the past exams.
First Statement:
You must submit evidence of your solution with your exam.
This statement indicates that you must provide the MS 6.0 solution and were asked to “show your work” … take a picture (or screenshot) of your work and either insert the photo into the Word document ….or…. attach the photo to the e-mail when you turn in the exam. Either way is fine, I just need to see your work.
Second Statement:
This statement indicates where I want you to “TYPE” your answer below the question. Use as much space as you need to answer the question completely.
And finally, in your e-mail when you return the exam, please include the following claim:
“I Promise this is my work.”
😊…Thank you!
“Par Inc.” is a golf ball manufacture. They are making plans for the 2022 production cycle for their most popular golf ball the “GOLONG”.
The following “FOUR” questions are designed to assist in this analysis.
As an end-of-the-semester gift, ….. I will let you skip either question 1 or 4.
I wish you well……😊.
For the question you skipped, I will award you a perfect score of 50 points.
Question 2 and 3 “share” information so, please do not skip them.
QUESTION #1 – 50 Points
Occasionally “Par Inc.” accepts a special order for “LOGO” GOLONG golf balls. These are customized golf balls that occur rarely and need to be manufactured in small batches.
The firm’s estimated quarterly demand for the “LOGO” ball is 200,000 balls. They have an annual production capacity that is estimated to be your student ID# (wow what a coincidence). For example, if your ID# is W01085206, then use 1,085,206 for the number of golf balls produced in a year. To add the “LOGO” to the golf ball Par Inc. will need to rent a machine that will cost $5000.00 each time they produce these special orders. The holding cost for each golf ball is relatively cheap, 5% of the cost of goods sold (COGS) and “LOGO” golf balls COGS is $1.50.
Golf is almost a year-round sport, so the plant operates 300 days a year. Furthermore, Par Inc. prides itself on quality, they estimate that the average defect rate for “LOGO” golf balls is only 5%. Since Par Inc, always has production materials for golf balls, the only special material that needs to be order is the logo itself and these take 3 days to receive from the Art Department.
Mr. Porky Pig is Par Inc.’s V. P. of Production. He needs your assistance in developing a 2022 inventory policy for the “LOGO” golf balls.
Provide the MS 6.0 solution for Par Inc.’s production problem. You must submit your MS 6.0 solution with your exam.
Answer the following questions:
How many golf balls should be produced per batch?
Please type your answer here.
What is the number of production runs per year?
Please type your answer here.
What is the time between production runs?
Please type your answer here.
What is the length of production and non-production time?
Please type your answer here.
Identify and briefly explain the “3 Budgets of Inventory”.
Please type your answer here.
Determine the re-order point for the logos needed from the Art Department.
Please type your answer here.
If the variance for golf ball inventory is 160,000 units. What safety stock levels should “Par Inc.” manufacture if they want to maintain at least an 10% stockout rate but no more than a 5% stockout rate?
You must submit evidence (show your work) of your solution with your exam.
Provide Mr. Porky Pig with a “2 Paragraph MEMO” that identifies and explains your suggested 2022 inventory policy of the “LOGO” golf ball.
As part of your answer, include at least two qualitative criteria and two quantitative criteria that helped you determine your inventory policy.
Memo to V.P. for Production: (at least 2 GREAT paragraphs)
Dear Mr. Porky Pig,
Please type your answer here.
QUESTION #2 – 50 Points
The website, “Marvin’s Golf Hut.com”, is the largest national retailer of the “GOLONG” golf ball. They are trying to determine the inventory policy for “boxes” of GOLONG balls. Each box has a dozen balls, but for this analysis consider “boxes” and not individual golf balls. It is estimated that the website will sell (use your student ID # here…for example if your ID# is W01085206, then use 1,085,206) boxes of balls this year, and since it is a website, we operate 365 days a year.
Marvin is one of the exceptionally large customers for Par Inc.’s GOLONG golf balls, so he gets a reduced price of $25.00 per dozen and Par Inc. only charges him $5.00 to place an order. Marvin also gets expedited delivery at no extra charge, and Par Inc. promises that any order delivered to Marvin’s warehouse will have a lead-time of only 3 working days: 1day to receive the order, 1 day to process the order, and then 1 day to ship to the warehouse. In addition, every order is “guaranteed” to be 100% correct.
Marvin’s warehouse manager, Mr. Marvin the Martian, estimates that the per-unit holding cost is 2% of the price we paid for each dozen.
Provide the MS 6.0 solution for “Martin’s” inventory problem. You must submit your MS 6.0 solution with your exam.
Answer the following questions:
What is the most efficient order size?
2947 boxes
What is the number of orders per year?
1,085,206 / 2947 = 369 orders per year
What is the amount of time between orders?
365/369 = 0.989 days
Identify and briefly explain the “3 Budgets of Inventory”.
Raw Material Budget: is made to calculate material to be purchased. It is calculated from production budget and after considering any opening and closing inventory of raw material.
Ending Finished Goos Inventory Budget: is prepared using unit cost of product and considering any units produced during previous period remaining in closing inventory.
Production Budget: identifies units to be produced taking into account projected sales of the period.
Determine the re-order point for the GOLONG golf ball?
2973.17 / 3 = 991.06 boxes
Assume the standard deviation of Marvin’s inventory is 250 boxes. What is the “safety stock” at the 80th and 95th percentile? What is the probability of stockout if the safety stock policy is only 350 boxes?
You must submit evidence (show your work) of your solution with your exam.
Provide Mr. Martian with a “2 Paragraph MEMO” that provides and explains your suggested 2022 inventory policy of the Marvin golf ball problem.
As part of your answer, include at least two qualitative criteria and two quantitative criteria that helped you determine your policy.
Memo to the Warehouse Manager: (at least 2 GREAT paragraphs)
Dear Marvin,
Please type your answer here.
QUESTION # 3 – 50 Points
Since “Marvin’s Golf Hut” has been a long-standing customer and management has deemed them to be a “2022 Preferred Customer”. This entitles Marvin to discounts that are unavailable to most of Par Inc.’s customers. The Par Inc. sales representative (AKA “The TAS”) has offered a special price if the Marvin buys additional boxes of golf balls. The discount categories and their respective price breaks are as follows:
Category # of boxes % Discount
1 3,000 or less 0
2 3,001 – 10,000 20
3 10,001 or more 30
Use the information in question 2, to provide solution for Par Inc.’s quantity discount offer.
Provide the MS 6.0 solution for “Martin’s” quantity discounts inventory problem.
You must submit your MS 6.0 solution with your exam.
Should Marvin’s Golf Hut accept “The TAS’s” offer and should the inventory policy you recommended in question 2 changed, if so why? Provide Mr. TAS with a “2 Paragraph MEMO” that explains your decisions.
Dear TAS,
QUESTION # 4 – 50 Points
In 2021, “Par Inc.” used one “very old” machine that imprints the “LOGO” on each golf ball. The LOGO manager, Mr. SAM, has determined that the golf balls arrive to the machine at the rate of 10 per minute and it only takes 5 seconds for the machine to place the “LOGO” on each golf ball. This machine is paid for and will only require $10,000 for maintenance. Below is an illustration of the “OLD Manual System”.
To assist Mr. SAM, you will need to determine the answer the following waiting-line theory questions:
Provide the MS 6.0 solution for Par Inc.’s “OLD” machine. You must submit your solution with your exam.
Answer the following questions:
What is the probability that operations at the machine are idle?
0.50
What is the probability that 4 golf balls are in Queue?
0.015625
What is the average number of golf balls in Service?
1
What is the average time a golf ball will spend in Service?
1
What is the probability that an arriving golf ball will have to wait?
0.50
For 2022, Yosemite Sam has proposed that Par Inc. purchase a NEW machine that will reduce the time needed to put the logo to each ball IN HALF!!! However, the new machine will cost $1,000,000, but will have no maintenance cost. Below is an illustration of the “NEW Automated System”.
To assist Mr. Sam, you will need to determine the answer the following waiting-line theory questions:
Provide the MS 6.0 solution for Par Inc.’s “NEW” machine. You must submit your solution with your exam.
Answer the following questions:
What is the probability that operations at the machine are idle?
Please type your answer here.
What is the probability that 4 golf balls are in Queue?
Please type your answer here.
What is the average number of golf balls in Service?
Please type your answer here.
What is the average time a golf ball will spend in Service?
Please type your answer here.
What is the probability that an arriving golf ball will have to wait?
Please type your answer here.
Write a “2 Paragraph Memo” to Mr. SAM explaining your choice of either the “OLD” machine or the “NEW” machine.
Memo to Mr. Yosemite Sam:
Dear Mr. SAM,
Please type your answer here.
“I Promise this is my work.”
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