Exam 6: Managing Capacity

Saul Goodman represents several clients and bills at $400 per hour.He forgot to record the time it took to complete each activity,but he knows his eight hour day was spent representing three clients involved in one high profile case.He also remembers that Walt told him once that his learning curve percentage was 85%.How much more should Saul bill each of his three clients?

An entrepreneur identifies a product that he knows will sell like crazy if he can only figure out a way to bring it to her area.The idea is so fantastic that I can't tell you what it is,so we will just refer to it as X.The entrepreneur has identified four ways to bring X to the masses; she can import it,she can smuggle it,she can try to produce it on her own,and she can have a local reputable producer make it for her.The fixed and variable costs for each of these alternatives are shown below.Develop a graph showing the ideal alternative across a range of demand that reflects all decision points.

Saul Goodman represents several clients and bills at $400 per hour.He forgot to record the time it took to complete each activity,but he knows his eight hour day was spent representing three clients involved in one high profile case.He also remembers that Walt told him once that his learning curve percentage was 85%.How much more should Saul bill his first client than his third client?

A subdivision is planned for forty houses,each with its own in-ground swimming pool.A contractor estimates it will take him 30 hours to build the first pool and that there is a 90% learning curve associated with this process.How long will it take to build the last pool?

A collection of companies decides to work together for a while to provide service for what they see as a short term window of opportunity.These firms plan to coordinate their activities by deploying sophisticated information systems to share critical data.Each of these companies is skilled at one or two core activities - design,manufacturing,distribution,marketing,and so on.This association of companies can be described as a(n)________.

Which of the following statements about theoretical capacity is best?

A lead capacity strategy has the advantage of:

The maximum output capability of a system,allowing for no adjustments for scheduled or unscheduled maintenance is the ________.

A steady stream of eager fresh-faced students waits in line to register for spring semester classes.Students arrive at the rate of 100 per hour and it takes the registrar 30 seconds to check their schedule and verify they have paid in full.What is the average time waiting in line and the average number of people in line? How busy is the registrar?

Describe the three capacity strategies and the advantages of each.

In waiting line theory,a customer service attendant is a(n)________.

The Theory of Constraints would support the statement that a chain is only as strong as its weakest link.

Customers arrive at Rent a Wreck and hope to score an inexpensive and unsightly vehicle to use for what typically is a short period of time.About twenty customers show up in any hour of the day and it takes the customer service representative about two minutes to photocopy their driver's license and insurance card and take an impression of a credit card.Assume that the service and arrival rates are governed by the Poisson distribution; how long does it take for the average customer to clear the system?

A firm's capacity can be limited by members of its supply chain.

In operations and supply chain environments that must deal with random demand and variable processing time,it is virtually impossible to achieve very high capacity utilization levels and still provide acceptable customer service.

In a decision tree,outcome points are under direct control of the decision maker and show the results of choices.

Which of the following statements about learning curves is best?

A wise professor crafts a midterm that is beautiful to behold,painful to take,and a chore to grade.The first exam takes almost an hour and a half to grade (89 minutes and 24.7 seconds to be precise)but the second one takes only seventy-six minutes to complete.Realizing that learning effects are at work,the professor looks at his social calendar and spots an important social engagement at this time on the following day,exactly 24 hours from now.How long will it take to grade the third exam? How long will it take to finish grading exams for the entire class of 30 students?

A haberdashery conducts an exhaustive analysis and calculates their profit function as 4x² + 3x - 57.What is their fixed cost?

A learning percentage of 80 means that each time output is doubled,it takes ________ percent less time to produce than before.