Name _______Key___________Quiz 1SCM 3523Fall 2015 (15 points)1. A shop can assemble 25 chairs in one-half hour (i.e., 30 minutes) with 5 workers.a) How many chairs will be assembled with (only) three workers in two hours?b) How many workers will be needed if 1,200 chairs are required in 5 hours?c) Suppose you have an order to deliver 800 chairs and you have only 2 workers. How many days would it take to complete the order (assume they work for 8 hours a day)? 2. From the following data:Week Output (units) Workers Material (lbs) 1 400 8 50 2 500 9 60a) Compute the multifactor productivity (labor + material + overhead) week 1. Assume 40-hour work week and an hourly wage rate of $10. Overhead is 3 times weekly labor cost, material cost is $15 per pound, and the product sells for $100 per unit. Compute both output and input in dollars.Week 1 Output Input:400 x 100 = $40,000 Labor = 40 x 8 x 10 = $3,200Overhead = 3 x 3,200 = $9,600Material = 50 x 15 = $ 750 Total = $13,550Therefore, productivity = 40,000/13,550 = 2.953. What’s the most important reason ‘an activity’ is necessary in the transformation process?(a) to keep people busy(b) to keep machines busy(c) both (a) and (b)(d) to add value4. From the view point of the ‘transformation process’ of a fast food restaurant, the person who takes your order is a(n) _____ of the process.(a) input(b) resource(c) output(d) activity5. Relatively speaking, measuring productivity is ___ difficult for a process creating tangible goods than for a process creating intangible services. (a) less(b) more6. A bicycle manufactures buys tires for the bicycles it makes and sells. The tires in the assembly (transformation) process are:(a) inputs(b) resources(c) outputs(d) pieces of information7. _____ are plans for achieving organizational goals.(a) Mission statements(b) Tactics(c) Operations(d) Strategies8. DIRECTV, a company that provides television programs direct to homes via a small satellite dish, is an alternative to the cable services. What’s their business strategy based on?(a) Cost(b) Quality(c) Differentiation(d) Responsiveness9. “A low cost computer manufacturer cannot completely disregard the quality of its products. Similarly, the producer of a high quality product cannot completely ignore its pricein order to remain competitive in the marketplace.” Which of the following terms has to do with the above statements?(a) Manufacturing productivity(b) Operational tactics(c) Strategic differentiation(d) Order winners and order qualifiers