Table 4.1 The Union Manufacturing Company is producing two types of products: A and B. The demand forecasts, batch size, and time standards follow: \[\begin{array} { l | c | c } & \text { Product A } & \text { Product B } \\ \hline \text { Demand forecast (units/yr) } & 1000 & 4000 \\ \text { Batch size (units/batch) } & 20 & 10 \\ \text { Processing time (hr/unit) } & 3.2 & 4.5 \\ \text { Setup time (hr/batch } & 0 & 20 \end{array}\] Both products are produced at the same operation called Mark I. -Using Table 4.1,what is the total number of hours required of Mark I equipment for the next year?

A) less than 29,000 hours B) between 29,000 and 30,000 hours C) between 30,000 and 31,000 hours D) more than 31,000 hours A) less than 29,000 hours B) between 29,000 and 30,000 hours C) between 30,000 and 31,000 hours D) more than 31,000 hours

Table 4.2 High Tech, Inc. is producing two types of products: A and B. Both are produced at the same sawing operation. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and optimistic). The demand forecasts, batch sizes (units/batch), processing times (hr/unit), and setup times (hr/batch) follow. \(\begin{array}{c} \quad\quad\quad\quad\quad\text { Time Standard } \quad\quad \quad\quad\quad\quad\quad \text { Demand Forecasts ( 000 units/yr) }\\ \begin{array}{|l|l|l|l|l|l|l|} \hline \text { Product } & \text { Processing } & \text { Setup } & \text { Batch Size } & \text { Pessimistic } & \text { Expected } & \text { Optimistic } \\ \hline \text { A } & .20 & 2.0 & 40 & 200 & 240 & 300 \\ \text { B } & .15 & 3.0 & 50 & 160 & 180 & 200 \\ \hline \end{array}\end{array}\) The sawing machines operate on two 8-hour shifts, 5 days per week, and 50 weeks per year. The manager wants to maintain a 10 percent capacity cushion. -Using the information from Table 4.2,what is the minimum number of machines needed (assuming no reliance on short-term options)?

A) less than or equal to 22 B) more than 22 but less than or equal to 25 C) more than 25 but less than or equal to 28 D) more than 28 A) less than or equal to 22 B) more than 22 but less than or equal to 25 C) more than 25 but less than or equal to 28 D) more than 28

Exam 4: Capacity

Output measures are the usual choice for high-volume processes that produce only a limited range of similar products or services,usually expressed in terms of output over a period of time.

(True/False)

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Question 101

One reason why economies of scale drive down cost is the spreading of fixed costs.

(True/False)

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Question 102

A bottleneck is an operation that has the highest effective capacity of any operation in the process and,thus,boosts the system's output.

(True/False)

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Question 103

A wait-and-see strategy in regard to capacity is best characterized by

(Multiple Choice)

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Question 104

What factors should be considered when selecting the appropriate capacity cushion? How does the choice of capacity cushion relate to other decisions in operations management? To other functional areas?

(Essay)

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Question 105

What information would managers use to choose the best cost-effective capacity to balance customer service with the cost of adding capacity?

(Multiple Choice)

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Question 106

Describe the fundamental logic of the theory of constraints (TOC).

(Essay)

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Question 107

Capacity decisions should be made separate from strategic decisions.

(True/False)

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Question 108

Effective capacity is the maximum output that a process or facility can achieve under ideal conditions.

(True/False)

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Question 109

Aggregate stock is any stock of items used to support the production of goods and services or satisfy customer demand.

(True/False)

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Question 110

Typically,a larger capacity cushion is required in project processes with high variability than in line or continuous flow processes with relatively low variability.

(True/False)

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Question 111

Which one of the following factors usually motivates a SMALLER capacity cushion?

(Multiple Choice)

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Question 112

What is a decision tree?

(Essay)

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Question 113

Capacity decisions are usually linked with other decision areas.If a system is well balanced,which one of the following changes requires a larger-capacity cushion?

(Multiple Choice)

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Question 114

________ is the degree to which equipment,space,or labor is currently being used.

(Short Answer)

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Question 115

In a tire manufacturing plant,measuring capacity based on the number of tires produced per day is an example of an input measure of capacity.

(True/False)

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Question 116

Table 4.1 The Union Manufacturing Company is producing two types of products: A and B. The demand forecasts, batch size, and time standards follow: Product A Product B Demand forecast (units/yr) 1000 4000 Batch size (units/batch) 20 10 Processing time (hr/unit) 3.2 4.5 Setup time (hr/batch 0 20 Both products are produced at the same operation called Mark I. -Using Table 4.1,what is the total number of hours required of Mark I equipment for the next year?

(Multiple Choice)

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Question 117

Within a process,what is a bottleneck?

(Essay)

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Question 118

Which one of the following statements concerning capacity cushions is best?

(Multiple Choice)

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Question 119

Table 4.2 High Tech, Inc. is producing two types of products: A and B. Both are produced at the same sawing operation. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and optimistic). The demand forecasts, batch sizes (units/batch), processing times (hr/unit), and setup times (hr/batch) follow. Time Standard Demand Forecasts ( 000 units/yr) Product Processing Setup Batch Size Pessimistic Expected Optimistic A .20 2.0 40 200 240 300 B .15 3.0 50 160 180 200 The sawing machines operate on two 8-hour shifts, 5 days per week, and 50 weeks per year. The manager wants to maintain a 10 percent capacity cushion. -Using the information from Table 4.2,what is the minimum number of machines needed (assuming no reliance on short-term options)?

(Multiple Choice)

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Question 120

Showing 101 - 120 of 145

Output measures are the usual choice for high-volume processes that produce only a limited range of similar products or services,usually expressed in terms of output over a period of time.

One reason why economies of scale drive down cost is the spreading of fixed costs.

A bottleneck is an operation that has the highest effective capacity of any operation in the process and,thus,boosts the system's output.

A wait-and-see strategy in regard to capacity is best characterized by

What factors should be considered when selecting the appropriate capacity cushion? How does the choice of capacity cushion relate to other decisions in operations management? To other functional areas?

What information would managers use to choose the best cost-effective capacity to balance customer service with the cost of adding capacity?

Describe the fundamental logic of the theory of constraints (TOC).

Capacity decisions should be made separate from strategic decisions.

Effective capacity is the maximum output that a process or facility can achieve under ideal conditions.

Aggregate stock is any stock of items used to support the production of goods and services or satisfy customer demand.

Typically,a larger capacity cushion is required in project processes with high variability than in line or continuous flow processes with relatively low variability.

Which one of the following factors usually motivates a SMALLER capacity cushion?

What is a decision tree?

Capacity decisions are usually linked with other decision areas.If a system is well balanced,which one of the following changes requires a larger-capacity cushion?

________ is the degree to which equipment,space,or labor is currently being used.

In a tire manufacturing plant,measuring capacity based on the number of tires produced per day is an example of an input measure of capacity.

Within a process,what is a bottleneck?

Which one of the following statements concerning capacity cushions is best?

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