Question 1

An assembly line has 10 stations with times of 1,2,3,4,…,10,respectively.What is the bottleneck time?

Accepted Answer

A) 18.18% of the throughput time 
B) 100% of the throughput time 
C) 550% of the throughput time 
D) 50% of the throughput time 
E) 1.82% of the throughput time 
A) 18.18% of the throughput time 
B) 100% of the throughput time 
C) 550% of the throughput time 
D) 50% of the throughput time 
E) 1.82% of the throughput time

Question 2

________ is the number of units a facility can hold,store,receive,or produce in a period of time.

Accepted Answer

Throughput

Question 3

The efficiency of a factory is 75% and its utilization 50%.If effective capacity is 1000 find design capacity.

Accepted Answer

Output = Efficiency ∗ Effectiv

Question 4

Net present value:

Accepted Answer

A) is gross domestic product less depreciation. 
B) is sales volume less sales and excise taxes. 
C) is profit after taxes. 
D) ignores the time value of money. 
E) is the discounted value of a series of future cash receipts. 
A) is gross domestic product less depreciation. 
B) is sales volume less sales and excise taxes. 
C) is profit after taxes. 
D) ignores the time value of money. 
E) is the discounted value of a series of future cash receipts.

Question 5

A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years.If the cost of capital is 5 percent,what is the approximate net present value of this investment?

Accepted Answer

A) $20,920 
B) $26,160 
C) $49,840 
D) $70,920 
E) $106,990 
A) $20,920 
B) $26,160 
C) $49,840 
D) $70,920 
E) $106,990

Question 6

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students.Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals 90% of design capacity.If the number of students who actually got their orientation session is 1500,what is the efficiency of the system?

Accepted Answer

A) 1350 students 
B) 1710 students 
C) 78.9% 
D) 87.7% 
E) 90% 
A) 1350 students 
B) 1710 students 
C) 78.9% 
D) 87.7% 
E) 90%

Question 7

Effective capacity × Efficiency equals:

Accepted Answer

A) efficient capacity. 
B) utilization. 
C) actual capacity. 
D) expected output. 
E) design capacity. 
A) efficient capacity. 
B) utilization. 
C) actual capacity. 
D) expected output. 
E) design capacity.

Question 8

One limitation of the net present value approach to investments is that investments with identical net present values may have very different cash flows.

Accepted Answer

A) True 
 B)False

Question 9

Price changes are useful for matching the level of demand to the capacity of a facility.

Accepted Answer

A) True 
 B)False

Question 10

How is break-even analysis useful in the study of the capacity decision? What limitations does this analytical tool have in this application?

Accepted Answer

Breakeven is defined as the volume for w

Question 11

Break-even analysis can be used by a firm that produces more than one product,but:

Accepted Answer

A) the results are estimates,not exact values. 
B) the firm must allocate some fixed cost to each of the products. 
C) each product has its own break-even point. 
D) the break-even point depends upon the proportion of sales generated by each of the products. 
E) None of these statements is true. 
A) the results are estimates,not exact values. 
B) the firm must allocate some fixed cost to each of the products. 
C) each product has its own break-even point. 
D) the break-even point depends upon the proportion of sales generated by each of the products. 
E) None of these statements is true.

Question 12

The theory of constraints is a body of knowledge that deals with anything that limits an organization's ability to achieve its goals.

Accepted Answer

A) True 
 B)False

Question 13

An organization whose capacity is on that portion of the average unit cost curve that falls as output rises:

Accepted Answer

A) has a facility that is below optimum operating level and should build a larger facility. 
B) has a facility that is above optimum operating level and should reduce facility size. 
C) is suffering from diseconomies of scale. 
D) has utilization higher than efficiency. 
E) has expected output higher than rated capacity. 
A) has a facility that is below optimum operating level and should build a larger facility. 
B) has a facility that is above optimum operating level and should reduce facility size. 
C) is suffering from diseconomies of scale. 
D) has utilization higher than efficiency. 
E) has expected output higher than rated capacity.

Question 14

The basic break-even model can be modified to handle more than one product.This extension of the basic model requires:

Accepted Answer

A) price and sales volume for each product. 
B) price and variable cost for each product,and the percent of sales that each product represents. 
C) that the firm have very low fixed costs. 
D) that the ratio of variable cost to price be the same for all products. 
E) sales volume for each product. 
A) price and sales volume for each product. 
B) price and variable cost for each product,and the percent of sales that each product represents. 
C) that the firm have very low fixed costs. 
D) that the ratio of variable cost to price be the same for all products. 
E) sales volume for each product.

Question 15

In the service sector,scheduling customers is a type of ________ management,while scheduling the workforce is a type of ________.

Accepted Answer

The answer of In the service sector,scheduling customers is a...

Question 16

A factory produces 1000 units a month.If design capacity is 3000 and efficiency is 50% find utilization and effective capacity.

Accepted Answer

Output = Utilization ∗ Design Capacity g

Question 17

Which of the following represents a common way to manage capacity in the service sector?

Accepted Answer

A) appointments 
B) reservations 
C) changes in staffing levels 
D) first-come,first-served service rule 
E) "early bird" specials in restaurants 
A) appointments 
B) reservations 
C) changes in staffing levels 
D) first-come,first-served service rule 
E) "early bird" specials in restaurants

Question 18

Christopher's Cranks uses a machine that can produce 100 cranks per hour.The firm operates 12 hours per day,five days per week.Due to regularly scheduled preventive maintenance,the firm expects the machine to be running during approximately 95% of the available time.Based on experience with other products,the firm expects to achieve an efficiency level for the cranks of 85%.What is the expected weekly output of cranks for this company?

Accepted Answer

A) 5100 
B) 5700 
C) 4845 
D) 969 
E) 6783 
A) 5100 
B) 5700 
C) 4845 
D) 969 
E) 6783

Question 19

In "drum,buffer,rope," the ________ acts like signals between workstations.

Accepted Answer

The answer of In "drum,buffer,rope," the ________ acts like signals...

Question 20

A firm is about to undertake the manufacture of a product,and it is weighing three capacity alternatives: small job shop,large job shop,and repetitive manufacturing.The small job shop has fixed costs of $3,000 per month,and variable costs of $10 per unit.The larger job shop has fixed costs of $12,000 per month and variable costs of $3 per unit.The repetitive manufacturing plant has fixed costs of $30,000 and variable costs of $1 per unit.Demand for the product is expected to be 1,000 units per month with "moderate" market acceptance,but 2,000 under "strong" market acceptance.The probability of moderate acceptance is estimated to be 60 percent;strong acceptance has a probability of 40 percent.The product will sell for $25 per unit regardless of the capacity decision.Which capacity choice should the firm make?

Accepted Answer

The payoffs are as follows: small job sh

Exam 20: Capacity and Constraint Management

An assembly line has 10 stations with times of 1,2,3,4,…,10,respectively.What is the bottleneck time?

________ is the number of units a facility can hold,store,receive,or produce in a period of time.

The efficiency of a factory is 75% and its utilization 50%.If effective capacity is 1000 find design capacity.

Net present value:

A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years.If the cost of capital is 5 percent,what is the approximate net present value of this investment?

Effective capacity × Efficiency equals:

One limitation of the net present value approach to investments is that investments with identical net present values may have very different cash flows.

Price changes are useful for matching the level of demand to the capacity of a facility.

How is break-even analysis useful in the study of the capacity decision? What limitations does this analytical tool have in this application?

Break-even analysis can be used by a firm that produces more than one product,but:

The theory of constraints is a body of knowledge that deals with anything that limits an organization's ability to achieve its goals.

An organization whose capacity is on that portion of the average unit cost curve that falls as output rises:

The basic break-even model can be modified to handle more than one product.This extension of the basic model requires:

In the service sector,scheduling customers is a type of ________ management,while scheduling the workforce is a type of ________.

A factory produces 1000 units a month.If design capacity is 3000 and efficiency is 50% find utilization and effective capacity.

Which of the following represents a common way to manage capacity in the service sector?

In "drum,buffer,rope," the ________ acts like signals between workstations.

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy

Location Strategies

Layout Strategies

Human Resources,job Design,and Work Measurement

Supply Chain Management

Inventory Management

Aggregate Planning and Sop

Material Requirements Planning Mrpand ERP

Short-Term Scheduling

Lean Operations

Maintenance and Reliability

Sustainability in the Supply Chain

Statistical Process Control

Supply Chain Management Analytics

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters

In the service sector,scheduling customers is a type of management,while scheduling the workforce is a type of .