Production and Operations Management Final Examination Spring 2026

1. Explain Operations Management. Demonstrate the structure of a system with example. Or Demonstrate briefly the factors that you have considered to position your cafe into the market place

2. a. Analyze the factors of Process Strategy.

b. Nano Tech is ready to begin production of its exciting new technology. The company is evaluating three methods of production: (A) a small production facility with older equipment, (B) a larger production facility that is more automated, and (C) subcontracting to an electronics manufacturer in Singapore. The costs of each alternative are shown below. Examine for what level of Volume each production process should be chosen.

Process Fixed Cost Variable Cost Process A $200,000 $40 Process B $600,000 $20 Process C $0 $60

3. Country Hospital orders syringes from a hospital supply firm. The hospital expects to use 40,000 per year. The cost to order and have the syringes delivered is $800. The annual carrying cost is $1.90 per syringe because of security and theft. The hospital supply firm offers the following quantity discount pricing schedule. Quantity Price 0-999 $3.40