Deck 5: Constraint Management

Question 1

Use the process flow diagram to determine which of these events has the greatest net benefit.

A) reducing the flow time at Station A from 8 to 7 minutes
B) increasing the capacity at Station B to 12 units per hour
C) increasing the capacity at Station C to 9 units per hour
D) reducing the flow time at Station D from 6 to 5 minutes

Answer 1

A

Question 2

Constraints at any step causes imbalance in the capacity of a process. As a result, the overall performance of a system is affected which in turn leads to low customer satisfaction and loss of money even with high sales level.

Answer 2

True

Question 3

The focus for a process improvement exercise should be on balancing:

A) flow.
B) capacity.
C) workload.
D) time.

Answer 3

A

Question 4

________ is the maximum rate of output of a process or a system.

Question 5

The fifth step in Theory of Constraints application, "do not let inertia set in," means that the analyst should:

A) create a schedule that maximizes the throughput of the bottlenecks.
B) repeat the analysis to identify and manage new set of constraints.
C) consider increasing capacity of the bottleneck.
D) schedule non-bottleneck resources to support the bottleneck.

Question 6

The Theory of Constraints method is also referred to as the drum-buffer-rope method.

Question 7

The second step in Theory of Constraints application, "exploit the bottleneck(s)," means that the analyst should:

A) create a schedule that maximizes the throughput of the bottlenecks.
B) repeat the analysis process to look for other bottlenecks.
C) consider increasing capacity of the bottleneck.
D) schedule non-bottleneck resources to support the bottleneck.

Question 8

Use the process flow diagram to determine which of these events has the greatest net benefit.

A) reducing the flow time at Station A from 8 to 7 minutes
B) increasing the capacity at Station B to 8 units per hour
C) increasing the capacity at Station C to 7 units per hour
D) reducing the flow time at Station D from 9 to 8 minutes

Question 9

A bottleneck is an operation that has the lowest effective capacity of any operation in the process.

Question 10

Consider consecutive processes A-B-C, where process A has a capacity of 20 units per hour, process B has a capacity of 25 units per hour, and process C has a capacity of 30 units per hour. Where would an operations manager want any inventory?

A) in front of process A
B) in front of process B
C) in front of process C
D) Inventory should not exist anywhere.

Question 11

Lanny discovers that the bottleneck is the riveting machine so he schedules all production around when that machine is available. This is an example of elevating the constraint in the five-step constraint management process.

Question 12

The third step in Theory of Constraints application, "subordinate all other decisions to Step 2," means that the analyst should:

A) wait for authorization before proceeding with any system-wide changes.
B) schedule non-bottleneck resources to support the bottleneck schedule.
C) seek to increase capacity of only the bottleneck resources.
D) seek to increase capacity of both the bottleneck and non-bottleneck resources.

Question 13

Use the process flow diagram to determine which of these events has the greatest net benefit.

A) reducing the flow time at Station A from 10 to 8 minutes
B) increasing the capacity at Station B to 12 units per hour
C) increasing the capacity at Station C to 10 units per hour
D) reducing the flow time at Station D from 12 to 10 minutes

Question 14

The process with the least capacity is called a bottleneck if its output is less than market demand.

Question 15

The first step in applying the Theory of Constraints is to identify the constraint.

Question 16

Work should be released into the system when:

A) a customer order is received.
B) the first step in the process is idle.
C) a customer order is completed.
D) the bottlenecks need work.

Question 17

The fourth step in Theory of Constraints application, "elevate the bottleneck(s)," means that the analyst should:

A) create a schedule that maximizes the throughput of the bottlenecks.
B) repeat the analysis process to look for other bottlenecks.
C) consider increasing capacity of the bottleneck.
D) schedule non-bottleneck resources to support the bottleneck.

Question 18

A(n) ________ is an operation that has the lowest effective capacity of any operation in the process, and thus limits the system's output.

Question 19

Any system composed of resources that are operating at maximum output will, by definition, have maximum output for the entire system.

Question 20

Any factor that limits the performance of a system and restricts its output is a(n) ________.

Question 21

Figure 5.2

The figure above shows the process for customers arriving at Pierre's Spa and Salon. After signing in, customers are routed to different locations in the Spa for the two different services provided. The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Figure 5.2. What is the throughput time for the A-B-C-D-H routing?

A) 48 minutes
B) 30 minutes
C) 53 minutes
D) 23 minutes

Question 22

There are three consecutive steps in a customer service process. The first two steps are each capable of serving 25 customers per hour while the third step can process only 20 customers per hour. Which of the following statements regarding this system is True?

A) The entire system is capable of processing 25 customers per hour.
B) There are floating bottlenecks in the system.
C) If the first two steps are run at full capacity, then the third step has a waiting line.
D) The first and second steps are bottlenecks for the system.

Question 23

Figure 5.1

The figure above shows the process for paying tuition at a major university. Students receive their bill, for the next term, for review. They are directed to different tables for clarifications, before being asked to pay their tuition at E. The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Figure 5.1. What is the capacity for the A-B-D-E process route?

A) 10 students per hour
B) 6 student per hour
C) 3.5 students per hour
D) 2.9 students per hour

Question 24

Describe a process from your own personal experience at home or work that suffers from a lack of sufficient throughput. Apply the first four TOC steps to address the situation, assuming you have complete authority to do so.

Question 25

Explain why a bottleneck limits system output.

Question 26

Figure 5.1

The figure above shows the process for paying tuition at a major university. Students receive their bill, for the next term, for review. They are directed to different tables for clarifications, before being asked to pay their tuition at E. The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Figure 5.1. If 60% of the students are routed to C and 40% are routed to D, what is the average capacity per hour for the process?

A) 10 students per hour
B) 6.5 student per hour
C) 8 students per hour
D) 8.4 students per hour

Question 27

Figure 5.1

The figure above shows the process for paying tuition at a major university. Students receive their bill, for the next term, for review. They are directed to different tables for clarifications, before being asked to pay their tuition at E. The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Figure 5.1. What is the throughput time for the A-B-D-E process route?

A) 17 minutes
B) 27 minutes
C) 21 minutes
D) 19 minutes

Question 28

Figure 5.1

The figure above shows the process for paying tuition at a major university. Students receive their bill, for the next term, for review. They are directed to different tables for clarifications, before being asked to pay their tuition at E. The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Figure 5.1. Where would you expect student wait times to occur?

A) D only
B) B, C and D
C) A only
D) E only

Question 29

Figure 5.3

The figure above shows the process for customers arriving at Hobbies Unlimited for several advertised crafts demonstrations. After signing in, customers are routed to different locations in the store for the two different programs provided. The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Figure 5.3 What is the throughput time for the A-B-C-D-G routing?

A) 25 minutes
B) 70 minutes
C) 105 minutes
D) 60 minutes

Question 30

Figure 5.3

The figure above shows the process for customers arriving at Hobbies Unlimited for several advertised crafts demonstrations. After signing in, customers are routed to different locations in the store for the two different programs provided. The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Figure 5.3. What is the throughput time for the A-B-E-F-G routing?

A) 25 minutes
B) 70 minutes
C) 105 minutes
D) 60 minutes

Question 31

________ is the total time taken from the start to the finish of a process.

Question 32

Figure 5.1

The figure above shows the process for paying tuition at a major university. Students receive their bill, for the next term, for review. They are directed to different tables for clarifications, before being asked to pay their tuition at E. The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Figure 5.1. What is the capacity for the A-B-C-E process route?

A) 10 students per hour
B) 6 student per hour
C) 3.5 students per hour
D) 2.9 students per hour

Question 33

Figure 5.3

The figure above shows the process for customers arriving at Hobbies Unlimited for several advertised crafts demonstrations. After signing in, customers are routed to different locations in the store for the two different programs provided. The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Figure 5.3. How many customers can be processed through the A-B-C-D-G routing during a 4-hour evening session?

A) 48
B) 24
C) 32
D) 12

Question 34

According to the Theory of Constraints, all the money invested in a system in purchasing things that it intends to sell is ________.

Question 35

The wages paid to workers on the line are categorized as ________ in the Theory of Constraints.

Question 36

Figure 5.2

The figure above shows the process for customers arriving at Pierre's Spa and Salon. After signing in, customers are routed to different locations in the Spa for the two different services provided. The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Figure 5.2. What is the throughput time for the A-B-E-F-G-H routing?

A) 48 minutes
B) 30 minutes
C) 53 minutes
D) 23 minutes

Question 37

Figure 5.1

The figure above shows the process for paying tuition at a major university. Students receive their bill, for the next term, for review. They are directed to different tables for clarifications, before being asked to pay their tuition at E. The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Figure 5.1. What is the throughput time for the A-B-C-E process route?

A) 17 minutes
B) 27 minutes
C) 21 minutes
D) 19 minutes

Question 38

What are five of the seven key principles of the Theory of Constraints?

Question 39

Figure 5.3

The figure above shows the process for customers arriving at Hobbies Unlimited for several advertised crafts demonstrations. After signing in, customers are routed to different locations in the store for the two different programs provided. The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Figure 5.3. How many customers can be processed through the A-B-E-F-G routing during a 4-hour evening session?

A) 8
B) 24
C) 12
D) 32

Question 40

Figure 5.2

The figure above shows the process for customers arriving at Pierre's Spa and Salon. After signing in, customers are routed to different locations in the Spa for the two different services provided. The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Figure 5.2. What is the process bottleneck?

A) H
B) B
C) C
D) D

Question 41

Every time a manufacturer uses one resource, they make a lot size of 300. Once a group of 30 units are completed, they are taken to the next step in the process. The lot of 300 is the ________ and the group of 30 is the ________.

Question 42

Which statement about process batches is best?

A) One or more transfer batches may combine at the constrain buffer to form a process batch.
B) A process batch is used to maximize setups at the bottleneck.
C) A process batch must be greater than or equal to market demand.
D) Process batches are used to increase lead time.

Question 43

Which statement about transfer batch sizes is best?

A) Transfer batches are the same size as process batches when arriving at a bottleneck.
B) Transfer batches are the same size as process batches when departing from a bottleneck.
C) Transfer batches are a convenient way to increase lead time.
D) Transfer batches can be as small as one unit.

Question 44

________ is a planning and control system that regulates the flow of work-in-process materials at the bottleneck or the capacity constrained resource in a productive system.

Question 45

Table 5.1
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.1. Which work center is of greatest concern to the operations manager?

A) Work Center W
B) Work Center X
C) Work Center Y
D) Work Center Z

Question 46

Table 5.1
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.1. Using the traditional method, what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?

A) less than or equal to $8,100
B) greater than $8,100 but less than or equal to $8,300
C) greater than $8,300 but less than or equal to $8,500
D) greater than $8,500

Question 47

What are two ways a process manager can identify a bottleneck in a service or manufacturing process? If you were in a manufacturing firm, what physical cues would signal a bottleneck?

Question 48

A competent operations manager should first eliminate all of the bottlenecks from the process.

Question 49

In a drum-buffer-rope system, the lot size that moves from one work center to another for additional processing is a(n):

A) process batch.
B) operations batch.
C) transfer batch.
D) rope batch.

Question 50

Table 5.1
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.1. Using the traditional method, what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?

A) 71 A, 80B, 80C, 80 D
B) 80A, 72B, 80C, 80D
C) 80A, 80B, 60C, 80D
D) 80A, 80B, 80C, 70D

Question 51

Variability of a firm's workload may create ________.

Question 52

Table 5.1
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.1. Using the traditional method, in what sequence should products be scheduled for production?

A) D, C, B, A
B) D, B, A, C
C) C, D, A, B
D) C, D, B, A

Question 53

Short term capacity planning should be driven by identification and management of bottlenecks.

Question 54

What is a Drum-Buffer-Rope system for planning and control?

Question 55

The key to preserving bottleneck capacity is to watch them carefully and keep them as busy as practical.

Question 56

Table 5.1
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.1. Using the traditional method, which product should be scheduled first?

A) Product A
B) Product B
C) Product C
D) Product D

Question 57

A bottleneck process has the lowest capacity and the longest total time from the start to the finish.

Question 58

A firm's actual throughput and profit depend more on the contribution margin generated at the bottleneck than by the contribution margin of each individual product produced.

Question 59

Managers should produce products with the highest contribution margins or unit sales, provided they have market demand for them.

Question 60

The process batch at the constraint in a drum-buffer-rope system should be:

A) the same size as that at any non-constraint.
B) the same size as the transfer batch.
C) of such a size as to maximize the number of setups for the constraint.
D) of such a size as to improve utilization of the constraint.

Question 61

Table 5.2
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.2. Using the traditional method, what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?

A) less than or equal to $6,500
B) greater than $6,500 but less than or equal to $6,700
C) greater than $6,700 but less than or equal to $6,900
D) greater than $6,900

Question 62

Table 5.2
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.2. Using the traditional method, what is the optimal product mix?

A) 37 A, 60 B, 70 C, 80 D
B) 50 A, 51 B, 70 C, 80 D
C) 50 A, 60 B, 62 C, 80 D
D) 50 A, 60 B, 70 C, 60 D

Question 63

Table 5.3
King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs.

In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.3. Which machine is the bottleneck operation?

A) Machine 1
B) Machine 2
C) Machine 3
D) Machine 4

Question 64

Table 5.3
King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs.

In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.3. Using the traditional method, what is the optimal product mix?

A) 70 W, 60 X, 90 Y, 100 Z
B) 70 W, 50 X, 50 Y, 30 Z
C) 70 W, 60 X, 47 Y, 30 Z
D) 70 W, 47 X, 50 Y, 30 Z

Question 65

Table 5.3
King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs.

In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.3. Using the bottleneck method, in what sequence should products be scheduled for production?

A) Z, Y, X, W
B) X, W, Z, Y
C) Z, Y, W, X
D) X, Y, Z, W

Question 66

Table 5.2
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.2. Which work center is the bottleneck operation?

A) Work Center W
B) Work Center X
C) Work Center Y
D) Work Center Z

Question 67

Table 5.1
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.1. Using the bottleneck method, what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?

A) 71 A, 80B, 80C, 80 D
B) 80A, 72B, 80C, 80D
C) 80A, 80B, 60C, 80D
D) 80A, 80B, 80C, 70D

Question 68

Table 5.1
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.1. Using the bottleneck method, what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?

A) less than or equal to $8,100
B) greater than $8,100 but less than or equal to $8,300
C) greater than $8,300 but less than or equal to $8,500
D) greater than $8,500

Question 69

Table 5.2
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.2. Using the bottleneck method, what is the optimal product mix?

A) 37 A, 60 B, 70 C, 80 D
B) 50 A, 51 B, 70 C, 80 D
C) 50 A, 60 B, 62 C, 80 D
D) 50 A, 60 B, 70 C, 60 D

Question 70

Table 5.3
King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs.

In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.3. Using the bottleneck method, which product should be scheduled first?

A) Fixture W
B) Fixture X
C) Fixture Y
D) Fixture Z

Question 71

Table 5.2
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.2. Using the bottleneck method, what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?

A) less than or equal to $6,500
B) greater than $6,500 but less than or equal to $6,700
C) greater than $6,700 but less than or equal to $6,900
D) greater than $6,900

Question 72

Table 5.1
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.1. Using the bottleneck method, which product should be scheduled first?

A) Product A
B) Product B
C) Product C
D) Product D

Question 73

Table 5.3
King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs.

In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.3. Using the traditional method, which product should be scheduled first?

A) Fixture W
B) Fixture X
C) Fixture Y
D) Fixture Z

Question 74

Table 5.3
King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs.

In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.3. Using the traditional method, what is the profit if King Supply manufactures the optimal product mix?

A) less than or equal to $10,000
B) greater than $10,000 but less than or equal to $11,000
C) greater than $11,000 but less than or equal to $12,000
D) greater than $12,000

Question 75

Table 5.1
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.1. Using the bottleneck method, in what sequence should products be scheduled for production?

A) D, C, B, A
B) D, C, A, B
C) C, D, A, B
D) C, D, B, A

Question 76

Table 5.2
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.2. Using the traditional method, which product should be scheduled first?

A) Product A
B) Product B
C) Product C
D) Product D

Question 77

Table 5.2
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.2. Using the bottleneck method, which product should be scheduled first?

A) Product A
B) Product B
C) Product C
D) Product D

Question 78

Table 5.2
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.2. Using the bottleneck method, in what sequence should products be scheduled for production?

A) A, D, B, C
B) D, A, B, C
C) A, D, C, B
D) D, A, C, B

Question 79

Table 5.2
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand is 50 As, 60 Bs, 70 Cs, and 80 Ds per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.2. Using the traditional method, in what sequence should products be scheduled for production?

A) A, B, C, D
B) A, C, B, D
C) A, D, B, C
D) D, B, C, A

Question 80

Table 5.3
King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs.

In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 5.3. Using the traditional method, in what sequence should the fixtures be scheduled for production?

A) Z, Y, X, W
B) X, W, Z, Y
C) Z, Y, W, X
D) W, X, Y, Z