Question 1

What would the potential profit be if he were to split 4,000 cords of wood with this machine?

Accepted Answer

A) $0 
B) $200,000 
C) $100,000 
D) $75,000 
E) $50,000 
A) $0 
B) $200,000 
C) $100,000 
D) $75,000 
E) $50,000

Question 2

How many cords of wood would he have to split with this machine to make a profit of $30,000?

Accepted Answer

A) 3,200 
B) 1,500 
C) 2,000 
D) 1,000 
E) 500 
A) 3,200 
B) 1,500 
C) 2,000 
D) 1,000 
E) 500

Question 3

Capacity planning decisions have both long-term and short-term considerations.Which of the following statements are true? (I) Long-term considerations relate to the overall level of capacity.
(II) Short-term considerations relate to the probable variations in capacity requirements.
(III) Short-term considerations determine the "effective capacity."

Accepted Answer

A) Only one of the three statements is true. 
B) I and II 
C) II and III 
D) I and III 
E) All three statements are correct. 
A) Only one of the three statements is true. 
B) I and II 
C) II and III 
D) I and III 
E) All three statements are correct.

Question 4

Production units have an optimal rate of output where:

Accepted Answer

A) total costs are minimum 
B) average unit costs are minimum 
C) marginal costs are minimum 
D) rate of output is maximum 
E) total revenue is maximum 
A) total costs are minimum 
B) average unit costs are minimum 
C) marginal costs are minimum 
D) rate of output is maximum 
E) total revenue is maximum

Question 5

What are total revenues for the break-even quantity?

Accepted Answer

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

Question 6

A firm is considering three capacity alternatives: A, B, andC.Alternative A would have an annual fixed cost of $100,000 and variable costs of $22 per unit.Alternative B would have annual fixed costs of $120,000 and variable costs of $20 per unit.Alternative C would have fixed costs of $80,000 and variable costs of $30 per unit.Revenue is expected to be $50 per unit.
(A) Which alternative has the lowest break-even quantity?
(B) Which alternative will produce the highest profits for an annual output of 10,000 units?
(C) Which alternative would require the lowest volume of output to generate an annual profit of $50,000?

Accepted Answer

The answer of A firm is considering three capacity alternatives:...

Question 7

The method of financial analysis which results in an equivalent interest rate is:

Accepted Answer

A) payback 
B) net present value 
C) internal rate of return 
D) queuing 
E) cost-volume 
A) payback 
B) net present value 
C) internal rate of return 
D) queuing 
E) cost-volume

Question 8

Which of these factors wouldn't be subtracted from design capacity when calculating effective capacity?

Accepted Answer

A) personal time 
B) maintenance 
C) scrap 
D) operating hours per day 
E) all of the above would be subtracted in the calculation 
A) personal time 
B) maintenance 
C) scrap 
D) operating hours per day 
E) all of the above would be subtracted in the calculation

Question 9

The break-even quantity can be determined by dividing the fixed costs by the difference between the revenue per unit and the variable cost per unit.

Accepted Answer

A) True 
 B)False

Question 10

Given the following information, what would efficiency be? Effective capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day

Accepted Answer

A) 40% 
B) 50% 
C) 60% 
D) 80% 
E) 90% 
A) 40% 
B) 50% 
C) 60% 
D) 80% 
E) 90%

Question 11

Given the following information, what would efficiency be? Effective capacity = 80 units per day
Design capacity = 100 units per day
Utilization = 48%

Accepted Answer

A) 20% 
B) 35% 
C) 48% 
D) 60% 
E) 80% 
A) 20% 
B) 35% 
C) 48% 
D) 60% 
E) 80%

Question 12

What would be the county's annual profit if they were to process 4,000 prisoners per year at this new location?

Accepted Answer

A) $0 
B) $75,000 
C) $50,000 
D) $100,000 
E) $300,000 
A) $0 
B) $75,000 
C) $50,000 
D) $100,000 
E) $300,000

Question 13

What profit (loss) would there be for a quantity of 10,000?

Accepted Answer

The answer of What profit (loss) would there be for...

Question 14

How many HIV blood analyses would he have to perform in order to break even?

Accepted Answer

A) 12,000 
B) 2,400 
C) 3,000 
D) 1,000 
E) 5,000 
A) 12,000 
B) 2,400 
C) 3,000 
D) 1,000 
E) 5,000

Question 15

When buying component parts, risk does not include:

Accepted Answer

A) loss of control 
B) vendor viability 
C) interest rate fluctuations 
D) need to disclose proprietary information 
E) all are risk factors 
A) loss of control 
B) vendor viability 
C) interest rate fluctuations 
D) need to disclose proprietary information 
E) all are risk factors

Question 16

The method of financial analysis which focuses on the length of time it takes to recover the initial cost of an investment is:

Accepted Answer

A) payback 
B) net present value 
C) internal rate of return 
D) queuing 
E) cost-volume 
A) payback 
B) net present value 
C) internal rate of return 
D) queuing 
E) cost-volume

Question 17

Unbalanced systems are evidenced by ....

Accepted Answer

A) Top heavy operations 
B) Labor unrest 
C) Bottleneck operations 
D) Increasing capacities 
E) Assembly lines 
A) Top heavy operations 
B) Labor unrest 
C) Bottleneck operations 
D) Increasing capacities 
E) Assembly lines

Question 18

Which of the following is not a strategy to manage service capacity?

Accepted Answer

A) hiring extra workers 
B) backordering 
C) pricing and promotion 
D) part time workers 
E) subcontracting 
A) hiring extra workers 
B) backordering 
C) pricing and promotion 
D) part time workers 
E) subcontracting

Question 19

The current trend toward global operations has made capacity decisions much easier since we have the whole world in which to consider operations.

Accepted Answer

A) True 
 B)False

Question 20

How many prisoners would they have to process annually to make a profit of $100,000 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

Exam 5: Strategic Capacity Planning for Products and Services

What would the potential profit be if he were to split 4,000 cords of wood with this machine?

How many cords of wood would he have to split with this machine to make a profit of $30,000?

Production units have an optimal rate of output where:

What are total revenues for the break-even quantity?

The method of financial analysis which results in an equivalent interest rate is:

Which of these factors wouldn't be subtracted from design capacity when calculating effective capacity?

The break-even quantity can be determined by dividing the fixed costs by the difference between the revenue per unit and the variable cost per unit.

Given the following information, what would efficiency be? Effective capacity = 50 units per day Design capacity = 100 units per day Actual output = 30 units per day

Given the following information, what would efficiency be? Effective capacity = 80 units per day Design capacity = 100 units per day Utilization = 48%

What would be the county's annual profit if they were to process 4,000 prisoners per year at this new location?

What profit (loss) would there be for a quantity of 10,000?

How many HIV blood analyses would he have to perform in order to break even?

When buying component parts, risk does not include:

The method of financial analysis which focuses on the length of time it takes to recover the initial cost of an investment is:

Unbalanced systems are evidenced by ....

Which of the following is not a strategy to manage service capacity?

The current trend toward global operations has made capacity decisions much easier since we have the whole world in which to consider operations.

How many prisoners would they have to process annually to make a profit of $100,000 at this new location?

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