INDU 421: Quiz #1 (Version A)
Name: SOLUTIONS
Student ID: _______________
Question #1: (4 points)
a) What is the impact of facilities planning on the competitiveness of manufacturing
facilities? (2)
Solutions provided during the tutorial session.
b) Develop a list of strategic issues that must be addressed in performing facilities planning
for a bank. (2)
Solutions provided during the tutorial session.
Question #2: (6 points)
A semiconductor wafer fabrication facility receives an order for specially designed prototype
semiconductor wafers. The cost of producing each wafer is estimated to be $20,000. The
customer agrees to pay $120,000 for 3 good wafers, $160,000 for 4 good wafers, and $200,000
for 5 good wafers. Other than the 3, 4, or 5 good wafers, all other wafers, good or bad, must be
destroyed. To obtain the contract, the wafer fab offers to pay the customer $100,000 if at least 3
good wafers are not produced. Each wafer is produced independently; the probability of a wafer
being acceptable is estimated to be 0.75. Probability distributions for the number of good
castings produced in a batch of varying sizes are given below.
a) Calculate the probabilities missing in the table (2)
b) Determine the number of wafers to produce in order to maximize the profit (1)
c) Determine maximum expected profit (1)
d) If you decide to produce 8 wafers, what is the probability of losing money on the
transaction? (1)
This study source was downloaded by 100000899606070 from CourseHero.com on 09-30-2025 14:22:57 GMT -05:00
https://www.coursehero.com/file/40705470/Quiz1Solutionspdf/
Name: SOLUTIONS
Student ID: _______________
Question #1: (4 points)
a) What is the impact of facilities planning on the competitiveness of manufacturing
facilities? (2)
Solutions provided during the tutorial session.
b) Develop a list of strategic issues that must be addressed in performing facilities planning
for a bank. (2)
Solutions provided during the tutorial session.
Question #2: (6 points)
A semiconductor wafer fabrication facility receives an order for specially designed prototype
semiconductor wafers. The cost of producing each wafer is estimated to be $20,000. The
customer agrees to pay $120,000 for 3 good wafers, $160,000 for 4 good wafers, and $200,000
for 5 good wafers. Other than the 3, 4, or 5 good wafers, all other wafers, good or bad, must be
destroyed. To obtain the contract, the wafer fab offers to pay the customer $100,000 if at least 3
good wafers are not produced. Each wafer is produced independently; the probability of a wafer
being acceptable is estimated to be 0.75. Probability distributions for the number of good
castings produced in a batch of varying sizes are given below.
a) Calculate the probabilities missing in the table (2)
b) Determine the number of wafers to produce in order to maximize the profit (1)
c) Determine maximum expected profit (1)
d) If you decide to produce 8 wafers, what is the probability of losing money on the
transaction? (1)
This study source was downloaded by 100000899606070 from CourseHero.com on 09-30-2025 14:22:57 GMT -05:00
https://www.coursehero.com/file/40705470/Quiz1Solutionspdf/
