Media text: News paper
December 17, 2018
Intermediate Microeconomic Theory
December 17, 2018

Supply Chain Management



  1. This is Part 1 of the Final Exam that requires the use of Excel. It is a take-home exam.
  2. Part 2 of the Final Exam will be conducted in-class during the regular class hours. No laptop or cell-phone use will be allowed.
  3. The purpose of this exam is to test your individual understanding of the material covered in this course. Please do this exam on your own without help from anyone else.
  4. Solution to some of the problems can be completed with the use of Excel. Please copy and paste your work from Excel into this document (email the separate excel file if necessary).
  5. Email or submit via Brightspace
  6. Late exams will not be accepted.


(For Instructor’s use)

Final Exam Points Earned
Problem 1  
Problem 2  
Problem 3  
Total for Final Exam Part 1  



Problem 1 (10 points)


The Soft Toys Company has collected information on fixed and variable costs for its three plant lcoations.

Plant Location Annual Fixed Cost Unit Variable Cost
Manchester $20,000 $50
Buffalo $30,000 $45
Richmond $60,000 $30


Based on the information provided above, answer the following four questions.

  • Which location is the best choice if producing 3,000 units? (You can use the attached Excel template to create the cost curve).





















Problem 2 (10 points)

Given the following information, perform an ABC analysis based on annual usage (use that attached Excel and paste the table below).

Item Number Unit Cost ($) Annual Usage      
T6334 70.00 500      
J1252 5.25 6,500      
Y3214 32.00 1,000      
Y6339 4.00 3,500      
X2215 1.50 8,000      
M4554 5.50 2,000      
L2425 1.00 1,500      
K9667 0.25 4,000      
B8867 6.00 100      
W9856 0.75 800      















Problem 3 (10 points)


The Bucks Grande exhibition baseball team plays 50 weeks each year and uses an average of 350 baseballs per week. The team orders baseballs from Coopers Town, Inc., a ball manufacturer noted for six sigma level consistency and high product quality. The cost to order baseballs is $100 per order and the annual holding cost per ball is 30% of the purchase price. Coopers-Town’s price structure is:


Order Quantity Price per Unit
1 – 1999 $7.50
2000 or more $7.00


  • Determine the best order quantity. Note: Show all steps and calculations.




















Bonus: Cause-and-Effect Diagram: (10 points).


Construct a cause-and-effect diagram for the following problem: The university course registration and payment process takes too long. Brainstorm some potential causes.

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