Question 1

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:
 
-Calculate the total cost of ownership (TCO) for the DeWalt compressor, with an annual discount rate of 10%.

Accepted Answer

A)  -$52,541
B)  -$57,887
C)  -$43,378
D)  -$41,385
E)  -$55,105 E

Question 2

A used tower crane has an initial cost of $250,000. In Year 3 and Year 6, the equipment will require major maintenance, at a cost of $16,000 each time. The annual operating cost for the equipment is $24,000, and it has a salvage value of $33,000 in Year 9.
-Find the net present value of the equipment if the cash flows are discounted annually at 12%.

Accepted Answer

A)  -$412,138
B)  -$395,374
C)  -$372,575
D)  -$385,472
E)  -$406,201 D

Question 3

Robinson Crusoe was trying to decide if they should continue making candy machines or outsource to a supplier. Their fixed costs to make them in house were $3,750, and the variable costs were $1.35 per unit. One of their suppliers in Mexico made a similar product for $5.75 per unit.
-Calculate the break-even point.

Accepted Answer

A)  594 units
B)  852 units
C)  652 units
D)  2,778 units
E)  15,972 units B

Question 4

Robinson Crusoe was trying to decide if they should continue making candy machines or outsource to a supplier. Their fixed costs to make them in house were $3,750, and the variable costs were $1.35 per unit. One of their suppliers in Mexico made a similar product for $5.75 per unit.
-If Robinson needed 1,000 units, which option should be preferred?

Accepted Answer

A)  Choose to make in house
B)  Order from the supplier in Mexico
C)  Either, since both have the same costs
D)  Neither, since both will incur enormous loss to the company's operations
E)  Need additional information to decide

Question 5

A weighted scorecard is used to compare three suppliers for a product, using a 10-point scale.
 
-Which of the following statements is NOT correct?

Accepted Answer

A)  Supplier B has the lowest rating among the three suppliers for the customer service criterion.
B)  Suppliers A and B do not have the same rating for the on-time performance criterion.
C)  For the meets quality check criterion, the rating for Supplier C is better than the rating for Supplier A.
D)  For the pricing criterion, the rating for Supplier A is higher compared to Suppliers B and C.
E)  For the supplier contributions criterion, Supplier B has the highest rating among the three suppliers.

Question 6

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:
 
-Calculate the total cost of ownership (TCO) for the DeWalt compressor, with an annual discount rate of 12%, and the total cost of ownership (TCO) for the Ingersoll-Rand compressor, with an annual discount rate of 12%. Which model should be purchased based on these calculations?

Accepted Answer

A)  Ingersoll-Rand product
B)  DeWalt product
C)  Either one can be purchased.
D)  Neither, since both will incur enormous loss.
E)  Need additional information to decide

Question 7

Robinson Crusoe was trying to decide if they should continue making candy machines or outsource to a supplier. Their fixed costs to make them in house were $3,750, and the variable costs were $1.35 per unit. One of their suppliers in Mexico made a similar product for $5.75 per unit.
-If Robinson needed 600 units, calculate their make cost.

Accepted Answer

A)  $5,750
B)  $5,100
C)  $3,450
D)  $4,560
E)  $4,900

Question 8

A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers and which supplier would be preferred. Use a 10-point scale. Note that excellent = 10, good = 8, fair = 6, poor = 4.
 
-Which of the following statement is NOT correct?

Accepted Answer

A)  Supplier B has the highest rating among the three suppliers for the on-time performance criterion.
B)  Suppliers B and C do not have the same rating for the meets quality check criterion.
C)  For customer service, the rating for Supplier A is better than the rating for Supplier B.
D)  For the pricing criterion, the rating for Supplier C is higher compared to Suppliers A and B.
E)  For the order change request criterion, the rating for Supplier C is higher than that of Supplier A.

Question 9

The Stark County executives are considering the purchase of new 130 hp bulldozer and are comparing two models: the BEHEMOTH and the GOLIATH. The BEHEMOTH bulldozer costs $130,000, with a projected annual operating and maintenance cost of $31,000 and a salvage value $15,000 after 7 years. The GOLIATH model costs $175,000, with a projected annual operating and maintenance cost of $22,000 and a salvage value of $21,000 after 7 years.
-Find the net present value of the GOLIATH compressor if the cash flows are discounted annually at 12%.

Accepted Answer

A)  -$265,903
B)  -$273,224
C)  -$287,727
D)  -$264,691
E)  -$280,487

Question 10

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:
 
-Calculate the total cost of ownership (TCO) for the Ingersoll-Rand compressor, with an annual discount rate of 10%. Calculate the total cost of ownership (TCO) for the DeWalt compressor, with an annual discount rate of 10%. Which model should be purchased based on these calculations?

Accepted Answer

A)  Ingersoll-Rand product
B)  DeWalt product
C)  Either one can be purchased.
D)  Neither, since both will incur enormous loss.
E)  Need additional information to decide

Question 11

Robinson Crusoe was trying to decide if they should continue making candy machines or outsource to a supplier. Their fixed costs to make them in house were $3,750, and the variable costs were $1.35 per unit. One of their suppliers in Mexico made a similar product for $5.75 per unit.
-If Robinson needed 600 units, which option should be preferred?

Accepted Answer

A)  Choose to make in house
B)  Order from the supplier in Mexico
C)  Either, since both have the same costs.
D)  Neither, since both will incur enormous losses to the company's operations.
E)  Need additional information to decide

Question 12

The Stark County executives are considering the purchase of new 130 hp bulldozer and are comparing two models: the BEHEMOTH and the GOLIATH. The BEHEMOTH bulldozer costs $130,000, with a projected annual operating and maintenance cost of $31,000 and a salvage value $15,000 after 7 years. The GOLIATH model costs $175,000, with a projected annual operating and maintenance cost of $22,000 and a salvage value of $21,000 after 7 years.
-Find the net present value of the GOLIATH compressor if the cash flows are discounted annually at 7%.

Accepted Answer

A)  -$265,903
B)  -$273,224
C)  -$287,727
D)  -$264,691
E)  -$280,487

Question 13

A weighted scorecard is used to compare three suppliers for a product, using a 10-point scale.
 
-Determine the total weighted score for Supplier B.

Accepted Answer

A)  10
B)  9.34
C)  9.02
D)  8.69
E)  Do not have enough information to compute

Question 14

A weighted supplier scorecard is shown below. Use a 10-point scale. Note that excellent = 10.
 
-For the order lead-time criterion, calculate the rating on a scale of 0 through 10.

Accepted Answer

A)  10.00
B)  5.00
C)  13.33
D)  16.67
E)  20.00

Question 15

The Stark County executives are considering the purchase of new 130 hp bulldozer and are comparing two models: the BEHEMOTH and the GOLIATH. The BEHEMOTH bulldozer costs $130,000, with a projected annual operating and maintenance cost of $31,000 and a salvage value $15,000 after 7 years. The GOLIATH model costs $175,000, with a projected annual operating and maintenance cost of $22,000 and a salvage value of $21,000 after 7 years.
-Find the net present value of the BEHEMOTH compressor if the cash flows are discounted annually at 7%.

Accepted Answer

A)  -$265,903
B)  -$273,224
C)  -$287,727
D)  -$264,691
E)  -$280,487

Question 16

A weighted supplier scorecard is shown below. Use a 10-point scale. Note that excellent = 10.
 
-For the on-time deliveries criterion, calculate the rating on a scale of 0 through 10.

Accepted Answer

A)  10.00
B)  5.00
C)  7.50
D)  6.00
E)  13.33

Question 17

A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers and which supplier would be preferred. Use a 10-point scale. Note that excellent = 10, good = 8, fair = 6, poor = 4.
 
-Determine the total weighted score for the Supplier B.

Accepted Answer

A)  9.12
B)  8.23
C)  10.00
D)  9.01
E)  Do not have enough information to compute

Question 18

The Stark County executives are considering the purchase of new 130 hp bulldozer and are comparing two models: the BEHEMOTH and the GOLIATH. The BEHEMOTH bulldozer costs $130,000, with a projected annual operating and maintenance cost of $31,000 and a salvage value $15,000 after 7 years. The GOLIATH model costs $175,000, with a projected annual operating and maintenance cost of $22,000 and a salvage value of $21,000 after 7 years.
-Find the net present value of the BEHEMOTH compressor if the cash flows are discounted annually at 7%. Find the net present value of the GOLIATH compressor if the cash flows are discounted annually at 7%. Which model should be purchased based on these calculations?

Accepted Answer

A)  BEHEMOTH
B)  GOLIATH
C)  Either one can be purchased.
D)  Neither, since both will incur enormous loss.
E)  Need additional information to decide

Question 19

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:
 
-Calculate the total cost of ownership (TCO) for the Ingersoll-Rand compressor, with an annual discount rate of 8%.

Accepted Answer

A)  -$52,541
B)  -$43,378
C)  -$55,105
D)  -$41,385
E)  -$45,539

Question 20

A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers and which supplier would be preferred. Use a 10-point scale. Note that excellent = 10, good = 8, fair = 6, poor = 4.
 
-Determine the total weighted score for the Supplier A.

Accepted Answer

A)  9.12
B)  8.23
C)  10.00
D)  9.01
E)  Do not have enough information to compute

Exam 14: Supply Chain Processes

A weighted scorecard is used to compare three suppliers for a product, using a 10-point scale. -Which of the following statements is NOT correct?

A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers and which supplier would be preferred. Use a 10-point scale. Note that excellent = 10, good = 8, fair = 6, poor = 4. -Which of the following statement is NOT correct?

A weighted scorecard is used to compare three suppliers for a product, using a 10-point scale. -Determine the total weighted score for Supplier B.

A weighted supplier scorecard is shown below. Use a 10-point scale. Note that excellent = 10. -For the order lead-time criterion, calculate the rating on a scale of 0 through 10.

A weighted supplier scorecard is shown below. Use a 10-point scale. Note that excellent = 10. -For the on-time deliveries criterion, calculate the rating on a scale of 0 through 10.

A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers and which supplier would be preferred. Use a 10-point scale. Note that excellent = 10, good = 8, fair = 6, poor = 4. -Determine the total weighted score for the Supplier B.

A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers and which supplier would be preferred. Use a 10-point scale. Note that excellent = 10, good = 8, fair = 6, poor = 4. -Determine the total weighted score for the Supplier A.