A company is investigating two automated approaches for its production process. It has collected the following cost information about each: $\begin{array}{|l|c|c|} \hline \text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \\ \hline \text { CNC } & \$ 85,000 & \$ 2.70 \\ \hline \text { FMS } & \$ 195,000 & \$ 1.30 \\ \hline \end{array}$ a.At what point of production will the firm be indifferent to which process it wants? b.Which process is more economical for an annual production volume of 50,000 units? c.Which process is more economical for an annual production volume of 100,000 units?

a.$85,000 + ($2.70)X = $195,000 + ($1.30

Highgrove Industries must decide which process technology to adopt given the information below. $\begin{array}{|l|c|c|c|} \hline \text { Cost } & \text { Technology A } & \text { Technology B } & \text { Technology C } \\ \hline \text { Price per unit } & \$ 3 & \$ 3 & \$ 3 \\ \hline \text { Fixed costs per year } & \$ 80,000 & \$ 120,000 & \$ 130,000 \\ \hline \text { Variable costs per unit } & \$ 2.20 & \$ 1.85 & \$ 1.65 \\ \hline \end{array}$ Which one of the process technologies would you recommend they adopt based on breakeven analysis if they wish to minimize demand risks?

Breakeven quantity for Technology A: 3X

Exam 5: Technology and Operations Management

A company is investigating two automated approaches for its production process. It has collected the following cost information about each: Alternative Fixed Cost Variable Cost CNC \ 80,000 \ 2.75 FMS \ 190,000 \ 1.25 -If the forecast annual production volume is 50,000 units, which technology alternative should the company choose?

(Multiple Choice)

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Question 61

Which of the following is NOT a major characteristic of a customer relationship management (CRM) system?

(Multiple Choice)

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Question 62

_____ involves computer control of a manufacturing process, such as determining tool movements and cutting speeds.

(Multiple Choice)

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Question 63

The acronym ICT stands for information and communication technology.

(True/False)

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Question 64

Low scalability was one of the reasons for failure of many early Internet-based companies.

(True/False)

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Question 65

_____ consist of two or more computer-controlled machines or robots linked by automated handling devices such as transfer machines, conveyors, and transport systems.

(Multiple Choice)

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Question 66

How does customer relationship management (CRM) help a firm gain competitive advantage?

(Essay)

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Question 67

Differentiate between hard technology and soft technology.

(Essay)

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Question 68

A company is investigating two automated approaches for its production process. It has collected the following cost information about each: Alternative Fixed Cost Variable Cost CNC \ 85,000 \ 2.70 FMS \ 195,000 \ 1.30 a.At what point of production will the firm be indifferent to which process it wants? b.Which process is more economical for an annual production volume of 50,000 units? c.Which process is more economical for an annual production volume of 100,000 units?

(Essay)

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Question 69

A manufacturing firm is considering three alternatives for automation. They anticipate the annual production volume to be 7,000 units. The costs for each alternative are as shown: Alternative 1 2 3 Annual Fixed Costs 50,000 \ 190,000 \ 350,000 Variable Cost/Unit \ 0.65 \ 0.55 \ 0.40 a.What sales price must be charged for Alternative 1 to break even? b.What sales price must be charged for Alternative 2 to break even? c.What sales price must be charged for Alternative 3 to break even?

(Essay)

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Question 70

Industrial robots automate the skills that most humans can readily perform.

(True/False)

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Question 71

Which of the following activities is NOT a part of a return facilitator's activities?

(Multiple Choice)

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Question 72

Highgrove Industries must decide which process technology to adopt given the information below. Cost Technology A Technology B Technology C Price per unit \ 3 \ 3 \ 3 Fixed costs per year \ 80,000 \ 120,000 \ 130,000 Variable costs per unit \ 2.20 \ 1.85 \ 1.65 Which one of the process technologies would you recommend they adopt based on breakeven analysis if they wish to minimize demand risks?

(Essay)

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Question 73

One of the major benefits of technology has been its impact on sustainability.

(True/False)

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Question 74

Because of the Internet and e-commerce, all parts of the value chain can immediately know and react to changes in demand and supply. Thus, tight integration of the components of the value chain is no longer required.

(True/False)

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Question 75

Information-intensive businesses have the potential to be infinitely scalable.

(True/False)

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Question 76

Explain the concept of industrial robots.

(Essay)

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Question 77

Which of the following is NOT a major characteristic of a customer relationship management (CRM) system?

_____ involves computer control of a manufacturing process, such as determining tool movements and cutting speeds.

The acronym ICT stands for information and communication technology.

Low scalability was one of the reasons for failure of many early Internet-based companies.

_____ consist of two or more computer-controlled machines or robots linked by automated handling devices such as transfer machines, conveyors, and transport systems.

How does customer relationship management (CRM) help a firm gain competitive advantage?

Differentiate between hard technology and soft technology.

Industrial robots automate the skills that most humans can readily perform.

Which of the following activities is NOT a part of a return facilitator's activities?

One of the major benefits of technology has been its impact on sustainability.

Because of the Internet and e-commerce, all parts of the value chain can immediately know and react to changes in demand and supply. Thus, tight integration of the components of the value chain is no longer required.

Information-intensive businesses have the potential to be infinitely scalable.

Explain the concept of industrial robots.

Goods, Services, and Operations Management

Value Chains

Measuring Performance in Operations

Operations Strategy

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Designs

Supply Chain Design

Capacity Management

Forecasting and Demand Planning

Managing Inventories

Resource Management

Operations Scheduling and Sequencing

Quality Management

Appendix: Quality Management

Quality Control and Spc

Appendix: Queuing Analysis

Appendix: Modeling Using Linear Programming

Lean Operating Systems

Appendix: Simulation

Project Management

Appendix: Decision Analysis

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