operation management:

Question $1$:

A company is considering outsourcing its manufacturing operations to a third$-$party provider. Which of the following factors is NOT a consideration in this decision?

A$.$ The cost of labor and materials at the outsourcing location

B$.$ The quality of the products or services provided by the outsourcing provider

C$.$ The company's ability to control the outsourcing provider's operations

D$.$ The impact of outsourcing on the company's employees

Question $2$:

A company is experiencing a shortage of a critical component that is used in its manufacturing process. Which of the following strategies would be MOST effective in addressing this problem?

A$.$ Increase the lead time for orders from suppliers

B$.$ Develop a new supplier relationship

C$.$ Redesign the product to use a different component

D$.$ Reduce the demand for the component through product substitution

Question $3$:

A company is trying to reduce its inventory costs. Which of the following strategies would be MOST effective in achieving this goal?

A$.$ Increase the order size for each supplier

B$.$ Reduce the safety stock level for each item

C$.$ Negotiate lower prices with suppliers

D$.$ Implement a just$-$in$-$time inventory system

Question $4$:

A company is trying to improve the quality of its products. Which of the following tools would be MOST useful in achieving this goal?

A$.$ Pareto charts

B$.$ Control charts

C$.$ Fishbone diagrams

D$.$ Failure mode and effects analysis $($FMEA$)$

Question $5$:

A company is trying to improve the efficiency of its production process. Which of the following techniques would be MOST effective in achieving this goal?

A$.$ Process mapping

B$.$ Work measurement

C$.$ Line balancing

D$.$ Lean manufacturing

Question $6$:

tibbs owns the Homeowners $($HO$-2)$ and the Personal Auto Policy found in your text$$s appendices. The following limits apply.

HOMEOWNERS LIMITS:

A $=$ $$65,000$

B $=$ $$6,500$

C $=$ $$32,500$

D $=$ $$13,000$

E $=$ $$100,000$

F $=$ $$500$

$$100$ flat deductible Section I

Replacement cost of the dwelling is $$72,000.$

Replacement cost of the other structure is $$10,000$

If a loss occurs to real or personal property, $1/3$ depreciation applies, therefore, Actual Cash Value $=2/3$

replacement cost.

PERSONAL AUTO POLICY LIMITS:

A $=$ $$100,000/$ $$300,000/$ $$50,000$

B $=$ $$1,000$

C $=$ $$100,000/$ $$300,000$

D $=$ Actual Cash Value $$200$ Deductible Collision

$$0$ Deductible Other Than Collision

One vehicle listed on the policy

Your assignment is to determine if the following situations are covered by the above policies. If there is coverage how much should be paid? The two policies above are the only ones in existence. No other contracts are to be considered. Each event is a separate occurrence.

$1.$ Mr$.$ Tibbs rents out a room to two students. One of the students falls down the stairs. Hospital costs equal $$4,500.$ In addition, all tuition was lost due to the inability to complete the semester. The student sued Mr$.$ Tibbs for $$5,500.$

$2.$ Mr$.$ Tibbs wakes up one morning and discovers a large tree leaning on the house. Mr$.$ Tibbs knew that the tree was dead and should have removed it two years ago. The cost to repair the dwelling is $$3,000$; to remove the tree $$450$; and the cost to plant a new tree $$300.$

$3.$ The insured is found to be legally obligated to pay $$170,000$ because of bodily injury to a neighbor $($a fishing partner$)$ caused by an accident involving Mr$.$ Tibbs$$s $35$ horsepower outboard motor boat.

$4.$ In question $3,$ the boat was rented to Mr$.$ Tibbs, and the owner of the boat sues Mr$.$ Tibbs for $$3,000$ in property damage because the boat sank due to Mr$.$ Tibbs$$s negligence.

$5.$ Mrs$.$ Tibbs leaves a suitcase filled with clothing in a motel room. Twenty miles down the road, she remembers, and returns to collect it$.$ Upon entry, she discovers that the suitcase is missing. Replacement cost of goods and suitcase is $$2,300.$

$6.$ Mr$.$ Tibbs$$s house is $55$ percent destroyed by fire. Local building codes have changed since it was originally built, and the codes state that the remaining portion of the structure must be torn down because the $45$ percent is deemed unsafe. The mere change in building codes will increase the cost of replacement by $10$ percent.

$7.$ In question $6$ above, when Mr$.$ Tibbs inventories his damaged property, he discovers that a $$6,000($ACV$)$ gun collection is missing. The adjusters conclude that in the confusion during the fire, someone stole the property.

$8.$ Mr$.$ Tibbs fails to trim his bushes near the street. The bushes obstruct the view of traffic turning the corner. A motorist, when inching out to see around the bushes, is struck by a car. Both cars are $$totaled$,$ and each driver sues Mr$.$ Tibbs for $$135,000$ in bodily injury and $$5,000$ in property damage.