Question 1

Which is not true about long-term capacity?

Accepted Answer

A)  Excess capacity can serve as a barrier to entry for other companies. 
B)  Capacity may be difficult and costly to modify. 
C)  Exceeding capacity minimizes operating costs. 
D)  Capacity affects the ability to satisfy customer's demand. 
E)  Capacity is usually a major determinant of initial capital costs. 
A)  Excess capacity can serve as a barrier to entry for other companies. 
B)  Capacity may be difficult and costly to modify. 
C)  Exceeding capacity minimizes operating costs. 
D)  Capacity affects the ability to satisfy customer's demand. 
E)  Capacity is usually a major determinant of initial capital costs. C

Question 2

Throughput capacity for a productive unit measured as a rate is:

Accepted Answer

A)  actual output to effective capacity. 
B)  used time to available time. 
C)  available time to effective capacity. 
D)  effective capacity to actual output. 
E)  size of productive unit to average cycle time. 
A)  actual output to effective capacity. 
B)  used time to available time. 
C)  available time to effective capacity. 
D)  effective capacity to actual output. 
E)  size of productive unit to average cycle time. E

Question 3

Which of the following is not an accurate statement concerning break-even analysis?

Accepted Answer

A)  The revenue per unit will be the same regardless of volume. 
B)  Costs related to production of a product are classified as fixed or variable 
C)  Variable cost per unit will be the same regardless of volume. 
D)  At quantities greater than the break-even point there is a loss. 
E)  All costs related to production of a product must be identified. 
A)  The revenue per unit will be the same regardless of volume. 
B)  Costs related to production of a product are classified as fixed or variable 
C)  Variable cost per unit will be the same regardless of volume. 
D)  At quantities greater than the break-even point there is a loss. 
E)  All costs related to production of a product must be identified. D

Question 4

Utilization is defined as the ratio of:

Accepted Answer

A)  actual output to effective capacity. 
B)  used time to available time. 
C)  available time to effective capacity. 
D)  effective capacity to actual output. 
E)  design capacity to actual output. 
A)  actual output to effective capacity. 
B)  used time to available time. 
C)  available time to effective capacity. 
D)  effective capacity to actual output. 
E)  design capacity to actual output.

Question 5

What would the potential profit be if he were to split 4,000 cords of wood with this machine?

Accepted Answer

A)  $100,000 
B)  $150,000 
C)  $200,000 
D)  $600,000 
E)  $800,000 
A)  $100,000 
B)  $150,000 
C)  $200,000 
D)  $600,000 
E)  $800,000

Question 6

-What are total revenues for the break-even quantity?

Accepted Answer

The answer of  
-What are total revenues for the...

Question 7

Capacity refers to the upper limit on the _______ an operating unit can handle.

Accepted Answer

A)  inventories 
B)  workload 
C)  supplies 
D)  available time 
E)  finances 
A)  inventories 
B)  workload 
C)  supplies 
D)  available time 
E)  finances

Question 8

How many recruits would he have to process annually to break even at this new location?

Accepted Answer

A)  8,000 
B)  6,000 
C)  5,000 
D)  4,000 
E)  2,000 
A)  8,000 
B)  6,000 
C)  5,000 
D)  4,000 
E)  2,000

Question 9

Efficiency is defined as the ratio of actual output to effective capacity.

Accepted Answer

A) True 
 B)False

Question 10

The efficiency of a productive unit is 60%.The unit produces an average of 20 forklift trucks per day.Determine the effective capacity of the unit.

Accepted Answer

@#IMG-DLM& Solving for effecti

Question 11

If this new blood analysis machine has design and effective capacities of 6,000 and 5,000 blood analyses per year,respectively,and Dr.J.expects to perform 4,500 blood analyses each year,what will be the utilization of this machine?

Accepted Answer

A)  0% 
B)  75% 
C)  83% 
D)  90% 
E)  100% 
A)  0% 
B)  75% 
C)  83% 
D)  90% 
E)  100%

Question 12

If,for this machine,design capacity is 50 cords per day,effective capacity is 40 cords per day,and actual output is anticipated to be 35 cords per day,what would its utilization be?

Accepted Answer

A)  100% 
B)  80% 
C)  75% 
D)  70% 
E)  0% 
A)  100% 
B)  80% 
C)  75% 
D)  70% 
E)  0%

Question 13

Which of the following is not an assumption of the break-even model?

Accepted Answer

A)  One product is involved. 
B)  Everything that is produced can be sold. 
C)  Total variable cost is the same regardless of volume. 
D)  Fixed costs do not change with volume changes. 
E)  Revenue per unit is the same regardless of volume. 
A)  One product is involved. 
B)  Everything that is produced can be sold. 
C)  Total variable cost is the same regardless of volume. 
D)  Fixed costs do not change with volume changes. 
E)  Revenue per unit is the same regardless of volume.

Question 14

-What is the anticipated efficiency?

Accepted Answer

The answer of  
-What is the anticipated efficiency?...

Question 15

The maximum possible output rate given a product mix,scheduling difficulties,operating hours,and so on,is:

Accepted Answer

A)  utilization. 
B)  design capacity. 
C)  efficiency. 
D)  effective capacity. 
E)  available capacity. 
A)  utilization. 
B)  design capacity. 
C)  efficiency. 
D)  effective capacity. 
E)  available capacity.

Question 16

-What profit (loss)would there be for a quantity of 10,000?

Accepted Answer

The answer of  
-What profit (loss)would there be for...

Question 17

If her available land has design and effective capacities of 3,000 and 2,000 rose bushes per year respectively,and she plans to grow 1,200 rosebushes each year on this land,what will be the efficiency of her use of this land?

Accepted Answer

A)  0% 
B)  40% 
C)  60% 
D)  67% 
E)  100% 
A)  0% 
B)  40% 
C)  60% 
D)  67% 
E)  100%

Question 18

-What is the break-even quantity (produced and sold)?

Accepted Answer

The answer of  
-What is the break-even quantity (produced...

Question 19

How many blood analyses would he have to perform in order to break even?

Accepted Answer

A)  3,000 
B)  2,400 
C)  2,000 
D)  1,200 
E)  750 
A)  3,000 
B)  2,400 
C)  2,000 
D)  1,200 
E)  750

Question 20

Long-term capacity decisions are important for which of the following reasons?
I.The impact they have on the ability to meet future demand.
II.The increased reliance on debt rather than equity financing to add long-term capacity.
III.As determinant of initial capital costs.
IV.Their effect on operating costs.

Accepted Answer

A)  I and III only 
B)  I, II, and III only 
C)  II and IV only 
D)  I, III, and IV only 
E)  I, II, III, and IV 
A)  I and III only 
B)  I, II, and III only 
C)  II and IV only 
D)  I, III, and IV only 
E)  I, II, III, and IV

Exam 5: A: Strategic Capacity Planning

Which is not true about long-term capacity?

Throughput capacity for a productive unit measured as a rate is:

Which of the following is not an accurate statement concerning break-even analysis?

Utilization is defined as the ratio of:

What would the potential profit be if he were to split 4,000 cords of wood with this machine?

-What are total revenues for the break-even quantity?

Capacity refers to the upper limit on the _______ an operating unit can handle.

How many recruits would he have to process annually to break even at this new location?

Efficiency is defined as the ratio of actual output to effective capacity.

The efficiency of a productive unit is 60%.The unit produces an average of 20 forklift trucks per day.Determine the effective capacity of the unit.

If this new blood analysis machine has design and effective capacities of 6,000 and 5,000 blood analyses per year,respectively,and Dr.J.expects to perform 4,500 blood analyses each year,what will be the utilization of this machine?

If,for this machine,design capacity is 50 cords per day,effective capacity is 40 cords per day,and actual output is anticipated to be 35 cords per day,what would its utilization be?

Which of the following is not an assumption of the break-even model?

-What is the anticipated efficiency?

The maximum possible output rate given a product mix,scheduling difficulties,operating hours,and so on,is:

-What profit (loss)would there be for a quantity of 10,000?

If her available land has design and effective capacities of 3,000 and 2,000 rose bushes per year respectively,and she plans to grow 1,200 rosebushes each year on this land,what will be the efficiency of her use of this land?

-What is the break-even quantity (produced and sold)?

How many blood analyses would he have to perform in order to break even?

Introduction to Operations Management

Competitiveness, Strategic Planning, and Productivity

Demand Forecasting

A: Product Design

B: Product Design

B: Strategic Capacity Planning

A: Process Design and Facility Layout

B: Process Design and Facility Layout

A: Design of Work Systems

B: Design of Work Systems

A: Location Planning and Analysis

B: Location Planning and Analysis

Management of Quality

A: Statistical Quality Control

B: Statistical Quality Control

Supply Chain Management

Inventory Management

Aggregate Operations Planning

Material Requirements Planning and Enterprise Resource Planning

A: Just-In-Time and Lean Production

B: Just-In-Time and Lean Production

Job and Staff Scheduling

Project Management

A: Waiting-Line Analysis

B: Waiting-Line Analysis

Filters