470 exam paper

MKT B370 (Specimen) SUGGESTED SOLUTION

SECTION A

Question 1 (a)

Students are expected to provide a short discussion including the following content. If too little inventory is maintained, there is a risk of stockout and potential lost sales. In addition, if there is not sufficient work-in process inventory, the production process may become too inefficient, raising the cost of production. On the other hand, if too much inventory is maintained, the carrying cost may become excessively high.

Question 1 (b)

Students are expected to provide a short discussion including the following content.
The basic ingredients can be purchased using either fixed order interval or fixed order quantity models; EOQ production lot size model is most appropriate for deciding the size of production quantity.

Question 1 (c)

Students are expected to provide a short discussion including the following content.
Customers judge the quality of bagels by their appearance (size, shape and shine), taste and consistency. Customers are also very interested in receiving high service quality; at the very beginning of each stage of the production process, workers check
MKT B370 (Specimen) SUGGESTED SOLUTION

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bagel quality. Corrective action at the source.

SECTION B

Question 2 (a)

:

Question 2 (b)

The expected project completion time is 46.00 days.

Question 2 (c)

The critical path and activities are D→E→F→G→J。

MKT B370 (Specimen) SUGGESTED SOLUTION

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Question 2 (d)

To compute the probability of selling the house within 7 weeks (49 days), first compute Z  49  mean  / std.dev.
 49  46  / 7.0789
 0.4238
Looking this z-value up in the standard-normal table results in a probability of
0.664 for selling the house within 7 weeks.

Question 2 (e)

To determine this value, first find a z-value in the standard-normal table such that the area to the left is 0.95.

That z-value is 1.645.

Then, the