1.Finish midterm Exam.2.write a discussion about”The world’s largest retailer, Walmart, owns and manages its own fleet of trucks. The company has often received praise for its distribution capabilities. The practice, however, seems to represent a stark contrast to the practice of outsourcing not only shipping, but other logistics operations to third-party logistics providers. Please address the advantages and disadvantages of these different policies. Under what conditions would it make sense for a firm to own and manage its own trucking operation?”POMS.3010 Operations Management
Midterm Exam
Calculation questions, 10 points each. PLEASE SHOW YOUR WORK.
1. The Dulac Box plant produces wooden packing boxes to be used in the local seafood
industry. Current operations allow the company to make 500 boxes per day, in two 8hour shifts (250 boxes per shift). The company has introduced some moderate changes
in equipment, and conducted appropriate job training, so that production levels have
risen to 300 boxes per shift. Labor costs average $10 per hour for each of the 5 full-time
workers on each shift. Capital costs were previously $3,000 per day, and rose to $3,200
per day with the equipment modifications. Energy costs were unchanged by the
modifications, at $400 per day.
a) What is the firm’s multifactor productivity before the changes?
b) What is the firm’s multifactor productivity after the changes?
Page 1 of 5
2. A company is choosing an outside firm to provide its payroll services. It has chosen four
comparative categories of interest: client reviews, financial condition, IT capabilities,
and government stability. These categories have been assigned weights of 20%, 10%,
40%, and 30%, respectively. Two potential providers were scored on each of those
factors (see table below) using a scale of 1-10, with a score of 1 meaning worst possible
and 10 meaning best possible. Using the factor-rating method, which provider should be
Client reviews
Financial condition
IT capabilities
Government stability
Provider A
Page 2 of 5
Provider B
3. Consider the supply chain illustrated below:
Last year, the retailer’s weekly variance of demand was 500 units. The variance of orders
was 600, 1200, and 1150 units for the retailer, wholesaler, and manufacturer, respectively.
(Note that the variance of orders equals the variance of demand for that firm’s supplier.)
a) Calculate the bullwhip measure for the retailer. Is the bullwhip effect present here?
b) Calculate the bullwhip measure for the wholesaler. Is the bullwhip effect present here?
c) Calculate the bullwhip measure for the manufacturer. Is the bullwhip effect present
d) Which firm appears to be contributing the most to the bullwhip effect in this supply
chain? Why?
Page 3 of 5
4. Amy Zeng, owner of Zeng’s Restaurant Distributions, supplies nonperishable goods to
restaurants around the metro area. She stores all the goods in a warehouse. The goods
are divided into five categories according to the following table. The table indicates the
number of trips per month to store or retrieve items in each category, as well as the
number of storage blocks taken up by each.
Item Category
Paper Products
Dishes, Glasses, and Silverware
Cleaning Agents
Cooking Oils and Seasonings
Pots and Pans
Monthly Trips Area Needed (Blocks)
The following picture of the warehouse provides an identification number for each of the 16
storage blocks. For each item category, indicate into which blocks it should be stored.
Page 4 of 5
5. The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as
components in minicomputers. The unit cost of each transistor is $10, and the cost of
carrying one transistor in inventory for a year is $3. Ordering cost is $30 per order.
Assume that Fisher operates on a 200-day working year.
a. What is the optimal order quantity?
b. What is the expected number of orders placed each year?
c. What is the expected time between orders?
d. What is the total cost?
Page 5 of 5

Purchase answer to see full

Why Choose Us

  • 100% non-plagiarized Papers
  • 24/7 /365 Service Available
  • Affordable Prices
  • Any Paper, Urgency, and Subject
  • Will complete your papers in 6 hours
  • On-time Delivery
  • Money-back and Privacy guarantees
  • Unlimited Amendments upon request
  • Satisfaction guarantee

How it Works

  • Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
  • Fill in your paper’s requirements in the "PAPER DETAILS" section.
  • Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
  • Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
  • From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.