The Northern Manufacturing Company is producing two types of products: A and B.Demand forecasts for next year and other production-related information are provided in the following table: \[\begin{array} { l | c | c } & \text { Product A } & \text { Product B } \\ \hline \text { Demand forecast (units/yr) } & 4000 & 12000 \\ \text { Batd size (units/batch) } & 80 & 150 \\ \text { Standard processing time (hr/unit) } & 2.5 & 2.0 \\ \text { Standard setup time (hr/batch } & 18 & 24 \end{array}\] Both of these products are produced at the same workstation,called the Automatic Lathe.Currently,the company has 12 automatic lathes,and financial constraints prevent any expansion for the next year.It works 250 days per year with two 8-hour shifts and desires a 25 percent capacity cushion.Which one of the following alternatives will allow next year's demand to be fully covered?

A) Do nothing. B) Increase the capacity cushion to 30 percent. C) Increase the batch size of product B to 300 units. D) Decrease the capacity cushion by 1 percent. A) Do nothing. B) Increase the capacity cushion to 30 percent. C) Increase the batch size of product B to 300 units. D) Decrease the capacity cushion by 1 percent.

Exam 4: Capacity

A company's production facility,consisting of two identical machines,currently caters only to product A.The annual demand for the product is 4000 units.Management has now decided to introduce another product,B,which uses the same facilities as that of product A.Product B has an annual demand of 2000 units.In view of the uncertainties involved in producing two products,management desires to have an overall 10 percent capacity cushion.Given the following additional information,how many more machines are required? (Assume 8 hours/shift,2 shifts/day,250 days/year,and that no overtime is allowed.) Product Processing Time per Unit (in hours) Setup Time per Batch (in hours) Batch Size (units) A 2.0 8 100 B 2.8 16 200

(Multiple Choice)

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Question 41

The Northern Manufacturing Company is producing two types of products: A and B.Demand forecasts for next year and other production-related information are provided in the following table: Product A Product B Demand forecast (units/yr) 4000 12000 Batd size (units/batch) 80 150 Standard processing time (hr/unit) 2.5 2.0 Standard setup time (hr/batch 18 24 Both of these products are produced at the same workstation,called the Automatic Lathe.Currently,the company has 12 automatic lathes,and financial constraints prevent any expansion for the next year.It works 250 days per year with two 8-hour shifts and desires a 25 percent capacity cushion.Which one of the following alternatives will allow next year's demand to be fully covered?

(Multiple Choice)

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Question 42

________ capacity is the maximum output that a process or firm can economically sustain under normal conditions.

(Short Answer)

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Question 43

Provided each measure is expressed in the appropriate units,Little's Law provides a mathematical expression that states capacity utilization equals the ratio of work-in-process inventory divided by the output rate of a process.

(True/False)

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Question 44

The lock box department at Bank 21 handles the processing of monthly loan payments to the bank,monthly and quarterly premium payments to a local insurance company,and bill payments for 85 of the bank's largest commercial customers.The payments are processed by machine operators,with one operator per machine.An operator can process one payment in 0.25 minute.Setup times are negligible in this situation.A capacity cushion of 20 percent is needed for the operation.The average monthly (not annual)volume of payments processed through the department currently is 400,000.However,it is expected to increase by 20 percent.The department operates eight hours per shift,two shifts per day,260 days per year.How many machines (not operators)are needed to satisfy the new total processing volume? (Round up to the next whole integer.)

(Multiple Choice)

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Question 45

In a manufacturing company,measuring capacity based on the number of machine-hours required to process a specific batch of production is an example of an output measure of capacity.

(True/False)

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Question 46

What is the meaning of diseconomies of scale,and what are two ways for a firm to avoid them?

(Essay)

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Question 47

The total time that a typical item spends in any process,termed ________ time,increases as the average level of inventor in that process increases.

(Short Answer)

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Question 48

If a system is well balanced,which one of the following changes usually calls for a larger-capacity cushion?

(Multiple Choice)

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Question 49

Capacity can be expressed by output or input measures.

(True/False)

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Question 50

The setup time required to switch from one product type to another within a manufacturing process is an example of an external,predictable from of variability.

(True/False)

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Question 51

The wait-and-see strategy refers to a condition which involves smaller,more frequent jumps.

(True/False)

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Question 52

A blocked operation is an operation that runs out of work to process.

(True/False)

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Question 53

If a system is well balanced,which one of the following changes usually calls for a smaller-capacity cushion?

(Multiple Choice)

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Question 54

The first step in the application of the Theory of Constraints (TOC)is to identify the bottlenecks.

(True/False)

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Question 55

Diseconomies of scale refers to situations where the average cost per unit decreases as the facility's size increases.

(True/False)

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Question 56

Explain the distinction between blocked and starved operations in a process that consists of sequential dependant operations.

(Essay)

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Question 57

Increasing the amount of work-in-process inventory reduces the likelihood that operations in the process will be starved.

(True/False)

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Question 58

Which of the following descriptions about waiting line models is best?

(Multiple Choice)

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Question 59

Two factors favor an expansionist strategy in capacity decisions: expansion may help achieve of scale,and it may also the learning rate.

(Short Answer)

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Question 60

Showing 41 - 60 of 145

________ capacity is the maximum output that a process or firm can economically sustain under normal conditions.

Provided each measure is expressed in the appropriate units,Little's Law provides a mathematical expression that states capacity utilization equals the ratio of work-in-process inventory divided by the output rate of a process.

In a manufacturing company,measuring capacity based on the number of machine-hours required to process a specific batch of production is an example of an output measure of capacity.

What is the meaning of diseconomies of scale,and what are two ways for a firm to avoid them?

The total time that a typical item spends in any process,termed ________ time,increases as the average level of inventor in that process increases.

If a system is well balanced,which one of the following changes usually calls for a larger-capacity cushion?

Capacity can be expressed by output or input measures.

The setup time required to switch from one product type to another within a manufacturing process is an example of an external,predictable from of variability.

The wait-and-see strategy refers to a condition which involves smaller,more frequent jumps.

A blocked operation is an operation that runs out of work to process.

If a system is well balanced,which one of the following changes usually calls for a smaller-capacity cushion?

The first step in the application of the Theory of Constraints (TOC)is to identify the bottlenecks.

Diseconomies of scale refers to situations where the average cost per unit decreases as the facility's size increases.

Explain the distinction between blocked and starved operations in a process that consists of sequential dependant operations.

Increasing the amount of work-in-process inventory reduces the likelihood that operations in the process will be starved.

Which of the following descriptions about waiting line models is best?

Two factors favor an expansionist strategy in capacity decisions: expansion may help achieve of scale,and it may also the learning rate.

Creating Customer Value through Operations

Supply Chain Management

Process Configuration

Inventory Management

Quality and Process Improvement

Lean Systems

Managing Projects

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Resource Planning

Decision Making

Financial Analysis

Work Measurement

Learning Curve Analysis

Computer-Integrated Manufacturing

Acceptance Sampling Plans

Simulation

Special Inventory Models

Linear Programming

Waiting Lines

Filters

Exam 4: Capacity

________ capacity is the maximum output that a process or firm can economically sustain under normal conditions.

Provided each measure is expressed in the appropriate units,Little's Law provides a mathematical expression that states capacity utilization equals the ratio of work-in-process inventory divided by the output rate of a process.

In a manufacturing company,measuring capacity based on the number of machine-hours required to process a specific batch of production is an example of an output measure of capacity.

What is the meaning of diseconomies of scale,and what are two ways for a firm to avoid them?

The total time that a typical item spends in any process,termed ________ time,increases as the average level of inventor in that process increases.

If a system is well balanced,which one of the following changes usually calls for a larger-capacity cushion?

Capacity can be expressed by output or input measures.

The setup time required to switch from one product type to another within a manufacturing process is an example of an external,predictable from of variability.

The wait-and-see strategy refers to a condition which involves smaller,more frequent jumps.

A blocked operation is an operation that runs out of work to process.

If a system is well balanced,which one of the following changes usually calls for a smaller-capacity cushion?

The first step in the application of the Theory of Constraints (TOC)is to identify the bottlenecks.

Diseconomies of scale refers to situations where the average cost per unit decreases as the facility's size increases.

Explain the distinction between blocked and starved operations in a process that consists of sequential dependant operations.

Increasing the amount of work-in-process inventory reduces the likelihood that operations in the process will be starved.

Which of the following descriptions about waiting line models is best?

Two factors favor an expansionist strategy in capacity decisions: expansion may help achieve ________ of scale,and it may also ________ the learning rate.

Creating Customer Value through Operations

Supply Chain Management

Process Configuration

Inventory Management

Quality and Process Improvement

Lean Systems

Managing Projects

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Resource Planning

Decision Making

Financial Analysis

Work Measurement

Learning Curve Analysis

Computer-Integrated Manufacturing

Acceptance Sampling Plans

Simulation

Special Inventory Models

Linear Programming

Waiting Lines

Filters

Two factors favor an expansionist strategy in capacity decisions: expansion may help achieve of scale,and it may also the learning rate.