1- Describe the role of materials requirements planning (MRP) in inventory management.

2- Explain how inventory management can impact OPSCM productivity. Provide an example to illustrate your point.

3- What are the major quality costs and how an organization work to reduce those costs?

4- Explain the different approaches to process scheduling (example - backward scheduling, forward scheduling, etc) and provide an example of how each can be applied.

5- Explain the lean approach to process scheduling.

6- Explain the major phases and tools used in project management.

7- Show computations and/or logic used.

A) A producer of felt-tip pens has received a forecast of demand of 30,000 pens for the company month from its marketing department. Fixed costs of $25,000 per month are allocated to the felt-tip operation, and variable costs are 37 cents per pen.

• Find the break-even quantity if pens sell for $1 each.

• At what price must pens be sold to obtain a monthly profit of $15,000, if the estimated demand comes true?
• B) A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced and average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment costs increased by $10 per hour while output increase by four more carts per hour. Compute labor productivity under each system (pre-new equipment and post-new equipment). Use carts per hour as a measure of labor productivity.