WAIT ONLINE Operation management to meet demands with supply
1. [28 points, 4 points each] Please circle the answers you think are correct.(a) (single choice) In the EOQ model, the demand rate has no impact on the order quantity.A. TrueB. False(b) (single choice) Metal frames for kick scooters are manufactured in two steps: Stampingand assembly. The parts are fabricated by a single stamping machine that requires a setup time of 90 minutes and a processing time of 30 seconds for each scooter. Currently,the stamping machine produces in batches of size 60. At assembly, parts are assembledmanually to form the finished products. Each scooter requires 30 minutes of labor time toassemble. There are 12 workers in assembly. There is sufficient demand to sell everyscooter the system can make. One way to increase process capacity is toA. increase the batch size at the Stamping stepB. decrease the batch size at the Stamping stepC. add more workers at AssemblyD. none of the above(c) (single choice) In the newsvendor model, if we keep other parameters the same,increasing the salvage value per unitA. increases order quantity.B. decreases order quantity.C. both A and B are possible.(d) (single choice) If the average A/F ratio is 0.8, this meansA. on average, the forecasts are overly optimistic.B. on average, the forecasts are overly pessimistic.C. the demand has a large variation.D. the retailer did not order enough inventories.(e) (single choice) Which of the following are correct?A. In service design, complexity is the number of ways a customer or serviceprovider interaction can vary at each step.B. In product design, a company should manage all major functions, because this is asign of core competency.