Question 1

When demand is uncertain,the expected value criterion may be used.To do so,demand-level scenarios and their ________ must be identified.

Accepted Answer

probabilit

Question 2

Define theoretical and rated capacity and name four factors that affect a company's capacity.Indicate how each factor impacts rated capacity.

Accepted Answer

Theoretical capacity is the maximum outp

Question 3

Building rental and depreciation on capital equipment are examples of fixed costs.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is NOT an appropriate measure of capacity?

Accepted Answer

A) square yards of carpet installed per hour 
B) number of cars assembled per month 
C) thickness of laminate on a desktop 
D) printed pages per minute 
A) square yards of carpet installed per hour 
B) number of cars assembled per month 
C) thickness of laminate on a desktop 
D) printed pages per minute

Question 5

How long does each type of customer spend in the store? How long does the average customer spend in this store?

Accepted Answer

For express customers:
Shopping = 30 min

Question 6

If a firm cannot make a profit regardless of output volume,then:

Accepted Answer

A) FC > VC. 
B) VC > FC. 
C) VC > R. 
D) BEP > VC. 
A) FC > VC. 
B) VC > FC. 
C) VC > R. 
D) BEP > VC.

Question 7

Business at the Kwik-E-Mart is brisk,with customers arriving at a rate of six per hour on average.Ringing up purchases is an easy matter for owner/operator Apu;he can usually do so in 2 minutes.If both arrival and service rates are Poisson distributed,how many customers are in the store on average?

Accepted Answer

A) 0.05 
B) 0.16 
C) 0.25 
D) 0.50 
A) 0.05 
B) 0.16 
C) 0.25 
D) 0.50

Question 8

A bottling machine has a theoretical capacity of 100 bottles per minute.During every ten hour shift it operates continuously but is shut down once for 30 minutes for cleaning,inspection,and lubrication.What is its rated capacity?

Accepted Answer

A) 100 bottles/minute 
B) 95 bottles/minute 
C) 90 bottles/minute 
D) 85 bottles/minute 
A) 100 bottles/minute 
B) 95 bottles/minute 
C) 90 bottles/minute 
D) 85 bottles/minute

Question 9

A busy toll highway that has four toll collectors for northbound traffic is an example of a single-channel,single-phase system.

Accepted Answer

A) True 
 B)False

Question 10

In a decision tree,outcome points are under direct control of the decision maker and show the results of choices.

Accepted Answer

A) True 
 B)False

Question 11

A business analyst identifies three possible demand levels for the new service they are considering for the new year.In addition to the levels of demand,the analyst estimates the likelihood of occurrence for each of these levels of demand.If he calculates the expected value of demand he should expect that the calculated value matches one of the three levels he originally identified.

Accepted Answer

A) True 
 B)False

Question 12

A firm is more likely to develop the internal capacity to perform activities that are strategically important to its success than it is to outsource those activities.

Accepted Answer

A) True 
 B)False

Question 13

A Seattle entrepreneur must decide on the size of a latte stand to construct.The manager has narrowed the choice down to large or small.If he builds large and experiences low demand he could grin and bear it for a $200 daily profit,lower prices ($225 daily profit),or hire street performers to attract attention ($175 daily profit).If he builds small and experiences high demand he could do nothing ($175 profit per day),stay open longer hours (profit of $225/day),improve processes ($250/day profit),or raise prices ($200/day profit).Building large for high demand has an expected payoff of $250/day and building small for low demand has an expected payoff of $175/day.There is a 0.7 probability of high demand and 0.3 probability of low demand.Sketch a decision tree for this scenario and determine what size stand should be constructed to slake the unquenchable thirst of caffeine addicts.

Accepted Answer

@#IMG-DLM& 
Large Stand = 0.7 × $250 + 0

Question 14

The average waiting time on a Thursday night for a table at a popular Chinese restaurant is 30 minutes.If customers arrive at the rate of four per hour and both the service and arrival rates are Poisson distributed,what is the average service time?

Accepted Answer

A) greater than 3 but less than 4 per hour 
B) greater than 4 but less than 5 per hour 
C) greater than 5 but less than 6 per hour 
D) Cannot be determined from the information provided. 
A) greater than 3 but less than 4 per hour 
B) greater than 4 but less than 5 per hour 
C) greater than 5 but less than 6 per hour 
D) Cannot be determined from the information provided.

Question 15

Which of these factors typically does NOT impact capacity?

Accepted Answer

A) fixed cost 
B) conformance quality 
C) product variations 
D) actions of supply chain partners 
A) fixed cost 
B) conformance quality 
C) product variations 
D) actions of supply chain partners

Question 16

Learning curve theory suggests that productivity will increase as people and systems learn to perform tasks more efficiently.

Accepted Answer

A) True 
 B)False

Question 17

Four entrepreneurial students want to open a shaved ice business during the coming summer.Maxine thinks that demand will be high and therefore they should purchase a large stand and acquire a premium ice shaving machine.Minnie feels strongly that demand will be low and that they should purchase a tarp and some basic hand tools to work the ice.Midelia is pretty sure that demand will fall in-between these two extremes,so they can get by with a shack and a used ice shaving machine.Their financial wizard of the bunch,Probableah,has estimated the costs,revenues,and likelihoods of each level of demand and created the table shown below.What is the expected profit for this venture?

Accepted Answer

A) $1700 
B) $2300 
C) $2900 
D) $3300 
A) $1700 
B) $2300 
C) $2900 
D) $3300

Question 18

The Theory of Constraints would support the statement that a chain is only as strong as its weakest link.

Accepted Answer

A) True 
 B)False

Question 19

A firm's capacity can be limited by members of its supply chain.

Accepted Answer

A) True 
 B)False

Question 20

In waiting line theory,a customer service attendant is a(n)________.

Accepted Answer

The answer of In waiting line theory,a customer service attendant...

When demand is uncertain,the expected value criterion may be used.To do so,demand-level scenarios and their ________ must be identified.

Define theoretical and rated capacity and name four factors that affect a company's capacity.Indicate how each factor impacts rated capacity.

Building rental and depreciation on capital equipment are examples of fixed costs.

Which of the following is NOT an appropriate measure of capacity?

How long does each type of customer spend in the store? How long does the average customer spend in this store?

If a firm cannot make a profit regardless of output volume,then:

Business at the Kwik-E-Mart is brisk,with customers arriving at a rate of six per hour on average.Ringing up purchases is an easy matter for owner/operator Apu;he can usually do so in 2 minutes.If both arrival and service rates are Poisson distributed,how many customers are in the store on average?

A bottling machine has a theoretical capacity of 100 bottles per minute.During every ten hour shift it operates continuously but is shut down once for 30 minutes for cleaning,inspection,and lubrication.What is its rated capacity?

A busy toll highway that has four toll collectors for northbound traffic is an example of a single-channel,single-phase system.

In a decision tree,outcome points are under direct control of the decision maker and show the results of choices.

A firm is more likely to develop the internal capacity to perform activities that are strategically important to its success than it is to outsource those activities.

The average waiting time on a Thursday night for a table at a popular Chinese restaurant is 30 minutes.If customers arrive at the rate of four per hour and both the service and arrival rates are Poisson distributed,what is the average service time?

Which of these factors typically does NOT impact capacity?

Learning curve theory suggests that productivity will increase as people and systems learn to perform tasks more efficiently.

The Theory of Constraints would support the statement that a chain is only as strong as its weakest link.

A firm's capacity can be limited by members of its supply chain.

In waiting line theory,a customer service attendant is a(n)________.

Introduction to Operations and Supply Chain Management

Operations and Supply Chain Strategies

Process Choice and Layout Decisions in Manufacturing and Services

Business Processes

Managing Quality

S Advanced Waiting Line Theory and Simulation Modeling

Supply Management

Logistics

Forecasting

Sales and Operations Planning Aggregate Planning

Managing Inventory Throughout the Supply Chain

Managing Production Across the Supply Chain

S Supply Chain Information Systems

Jitlean Production

Managing Projects

Developing Products and Services

Filters

Exam 6: Managing Capacity

When demand is uncertain,the expected value criterion may be used.To do so,demand-level scenarios and their ________ must be identified.

Define theoretical and rated capacity and name four factors that affect a company's capacity.Indicate how each factor impacts rated capacity.

Building rental and depreciation on capital equipment are examples of fixed costs.

Which of the following is NOT an appropriate measure of capacity?

How long does each type of customer spend in the store? How long does the average customer spend in this store?

If a firm cannot make a profit regardless of output volume,then:

Business at the Kwik-E-Mart is brisk,with customers arriving at a rate of six per hour on average.Ringing up purchases is an easy matter for owner/operator Apu;he can usually do so in 2 minutes.If both arrival and service rates are Poisson distributed,how many customers are in the store on average?

A bottling machine has a theoretical capacity of 100 bottles per minute.During every ten hour shift it operates continuously but is shut down once for 30 minutes for cleaning,inspection,and lubrication.What is its rated capacity?

A busy toll highway that has four toll collectors for northbound traffic is an example of a single-channel,single-phase system.

In a decision tree,outcome points are under direct control of the decision maker and show the results of choices.

A firm is more likely to develop the internal capacity to perform activities that are strategically important to its success than it is to outsource those activities.

The average waiting time on a Thursday night for a table at a popular Chinese restaurant is 30 minutes.If customers arrive at the rate of four per hour and both the service and arrival rates are Poisson distributed,what is the average service time?

Which of these factors typically does NOT impact capacity?

Learning curve theory suggests that productivity will increase as people and systems learn to perform tasks more efficiently.

The Theory of Constraints would support the statement that a chain is only as strong as its weakest link.

A firm's capacity can be limited by members of its supply chain.

In waiting line theory,a customer service attendant is a(n)________.

Introduction to Operations and Supply Chain Management

Operations and Supply Chain Strategies

Process Choice and Layout Decisions in Manufacturing and Services

Business Processes

Managing Quality

S Advanced Waiting Line Theory and Simulation Modeling

Supply Management

Logistics

Forecasting

Sales and Operations Planning Aggregate Planning

Managing Inventory Throughout the Supply Chain

Managing Production Across the Supply Chain

S Supply Chain Information Systems

Jitlean Production

Managing Projects

Developing Products and Services

Filters