Question 1

Capacity in excess of expected demand that is intended to offset uncertainty is a:

Accepted Answer

A) margin protect 
B) line balance 
C) capacity cushion 
D) timing bubble 
E) none of the above 
A) margin protect 
B) line balance 
C) capacity cushion 
D) timing bubble 
E) none of the above

Question 2

Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations.

Accepted Answer

A) True 
 B)False

Question 3

Short-term considerations in determining capacity requirements include:

Accepted Answer

A) demand trend 
B) cyclical demand variations 
C) seasonal demand variations 
D) mission statements 
E) new product development plans 
A) demand trend 
B) cyclical demand variations 
C) seasonal demand variations 
D) mission statements 
E) new product development plans

Question 4

Operation X feeds into Operation Y.Operation X has an effective capacity of 55 units per hour.Operation Y has an effective capacity of 50 units per hour.Finding a way to increase Y's effective capacity would be an example of ________ a constraint.

Accepted Answer

A) overcoming 
B) cushioning 
C) insourcing 
D) cycling 
E) repositioning 
A) overcoming 
B) cushioning 
C) insourcing 
D) cycling 
E) repositioning

Question 5

If the holding area at this new location has design and effective capacities of 10,000 and 7,500 prisoners processed annually, respectively, and 5,000 prisoners will be processed per year, what will be the utilization of the holding area?

Accepted Answer

A) 0% 
B) 30% 
C) 50% 
D) 60% 
E) 100% 
A) 0% 
B) 30% 
C) 50% 
D) 60% 
E) 100%

Question 6

Capacity planning requires an analysis of needs; what kind, how much and when.

Accepted Answer

A) True 
 B)False

Question 7

What are total costs for the break-even quantity?

Accepted Answer

The answer of What are total costs for the break-even...

Question 8

What would be your cost savings for the preferred alternative, for 32,000 units per year, compared to the other alternative?

Accepted Answer

The answer of What would be your cost savings for...

Question 9

A reason for the importance of capacity decisions is that capacity:

Accepted Answer

A) limits the rate of output possible 
B) affects operating costs 
C) is a major determinant of initial costs 
D) is a long-term commitment of resources 
E) all of the above 
A) limits the rate of output possible 
B) affects operating costs 
C) is a major determinant of initial costs 
D) is a long-term commitment of resources 
E) all of the above

Question 10

What is the anticipated utilization?

Accepted Answer

The answer of What is the anticipated utilization?...

Question 11

Capacity increases are usually acquired in fairly large "chunks" rather than in smooth increments.

Accepted Answer

A) True 
 B)False

Question 12

The ratio of actual output to design capacity is:

Accepted Answer

A) design capacity 
B) effective capacity 
C) actual capacity 
D) efficiency 
E) utilization 
A) design capacity 
B) effective capacity 
C) actual capacity 
D) efficiency 
E) utilization

Question 13

How many rosebushes would she have to produce and sell in order to make a profit of $6,000?

Accepted Answer

A) 1,600 
B) 2,400 
C) 3,000 
D) 1,000 
E) 4,000 
A) 1,600 
B) 2,400 
C) 3,000 
D) 1,000 
E) 4,000

Question 14

How many prisoners would they have to process annually to break even at this new location?

Accepted Answer

A) 5,000 
B) 8,000 
C) 2,000 
D) 4,000 
E) 6,000 
A) 5,000 
B) 8,000 
C) 2,000 
D) 4,000 
E) 6,000

Question 15

What are total costs to make a quantity of 15,000 units per year?

Accepted Answer

The answer of What are total costs to make a...

Question 16

Which of the following are assumptions of the break-even model? I.Only one product is involved.
II)Everything that is produced can be sold.
III)The revenue per unit will be the same regardless of volume.

Accepted Answer

A) I only 
B) I and II only 
C) II only 
D) II and III only 
E) I, II and III 
A) I only 
B) I and II only 
C) II only 
D) II and III only 
E) I, II and III

Question 17

How many cords of wood would he have to split with this machine to break even?

Accepted Answer

A) 5,000 
B) 3,000 
C) 2,000 
D) 1,000 
E) 0 
A) 5,000 
B) 3,000 
C) 2,000 
D) 1,000 
E) 0

Question 18

In cost-volume analysis, costs that vary directly with volume of output are referred to as fixed costs because they are a fixed percentage of output levels.

Accepted Answer

A) True 
 B)False

Question 19

What is the break-even quantity (produced and sold)?

Accepted Answer

The answer of What is the break-even quantity (produced and...

Question 20

A small business owner is contemplating the addition of another product line. Capacity increases and equipment will result in an increase in annual fixed costs of $50,000. Variable costs will be $25 per unit.
A) What unit selling price must the owner obtain to break-even on a volume of 2,500 units a year?
B) Because of market conditions, the owner feels a revenue of $47 is preferred to the value determined in part A. What volume of output will be required to achieve a profit of $16,000 using this revenue?

Accepted Answer

The answer of A small business owner is contemplating the...

Exam 5: Strategic Capacity Planning for Products and Services

Capacity in excess of expected demand that is intended to offset uncertainty is a:

Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations.

Short-term considerations in determining capacity requirements include:

Operation X feeds into Operation Y.Operation X has an effective capacity of 55 units per hour.Operation Y has an effective capacity of 50 units per hour.Finding a way to increase Y's effective capacity would be an example of ________ a constraint.

If the holding area at this new location has design and effective capacities of 10,000 and 7,500 prisoners processed annually, respectively, and 5,000 prisoners will be processed per year, what will be the utilization of the holding area?

Capacity planning requires an analysis of needs; what kind, how much and when.

What are total costs for the break-even quantity?

What would be your cost savings for the preferred alternative, for 32,000 units per year, compared to the other alternative?

A reason for the importance of capacity decisions is that capacity:

What is the anticipated utilization?

Capacity increases are usually acquired in fairly large "chunks" rather than in smooth increments.

The ratio of actual output to design capacity is:

How many rosebushes would she have to produce and sell in order to make a profit of $6,000?

How many prisoners would they have to process annually to break even at this new location?

What are total costs to make a quantity of 15,000 units per year?

Which of the following are assumptions of the break-even model? I.Only one product is involved. II)Everything that is produced can be sold. III)The revenue per unit will be the same regardless of volume.

How many cords of wood would he have to split with this machine to break even?

In cost-volume analysis, costs that vary directly with volume of output are referred to as fixed costs because they are a fixed percentage of output levels.

What is the break-even quantity (produced and sold)?

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Process Selection and Facility Layout

Work Design and Measurement

Location Planning and Analysis

Management of Quality

Quality Control

Aggregate Planning and Master Scheduling

MRP and ERP

Inventory Management

Jit and Lean Operations

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Extension 4: Reliability

Extension 5: Decision Theory

Extension 7: Learning Curves

Extension 8: The Transportation Model

Extension 10: Acceptance Sampling

Extension 14: Maintenance

Filters