Question 1

Input measures of capacity are inherently more accurate than output measures of capacity.

Accepted Answer

A) True 
 B)False

Question 2

A manufacturing plant is capable of producing 10 tons of product per day when it runs three shifts with no breakdowns and plenty of raw materials.Over the past week,the plant has produced an average of 7.3 tons per day since the third shift has devoted much of their time to preventive maintenance.What is the capacity of the plant?

Accepted Answer

A) 10 tons/day 
B) 7)3 tons/day 
C) 73% 
D) 137% 
A) 10 tons/day 
B) 7)3 tons/day 
C) 73% 
D) 137%

Question 3

A standard work year is 2000 hours at the Luther Mill and it takes about an hour and a half to fill a customer order.Last year saw 25,000 customer orders at the mill and the manager has a rebuilt Ford 9N in mind as a company car,so he hopes that there is an increase of 2% in customer orders for next year.If the manager hires twenty workers,what is the capacity cushion?

Accepted Answer

A) 3)8% 
B) 3)1% 
C) 5)1% 
D) 4)3% 
A) 3)8% 
B) 3)1% 
C) 5)1% 
D) 4)3%

Question 4

Which one of the following statements about capacity cushions is BEST?

Accepted Answer

A) Companies with flexible flow processes tend to have small capacity cushions. 
B) Companies with high capital costs tend to have large capacity cushions. 
C) Companies that have considerable customization tend to have larger capacity cushions. 
D) Constant demand rates require larger-capacity cushions. 
A) Companies with flexible flow processes tend to have small capacity cushions. 
B) Companies with high capital costs tend to have large capacity cushions. 
C) Companies that have considerable customization tend to have larger capacity cushions. 
D) Constant demand rates require larger-capacity cushions.

Question 5

A process's ________ is the length of time it takes to switch from making one type of product to another.

Accepted Answer

The answer of A process's ________ is the length of...

Question 6

A ________ is the difference between demand and current capacity.

Accepted Answer

The answer of A ________ is the difference between demand...

Question 7

A well-educated operations manager used the capacity requirements equation to determine the number of crackerbox welders to purchase for the shop,given the standard time per unit,hours available per machine,among other relevant parameters.He studied the answer,2.2,and concluded that:

Accepted Answer

A) he had made a mistake,since it isn't possible to purchase a fractional welder. 
B) he needed to decrease his desired capacity cushion to bring him up to exactly three welders. 
C) he should buy two welders and authorize 10% overtime to reach the 2.2 figure. 
D) he should buy two welders and reduce the time per part by 10% to reduce the capacity need to two welders. 
A) he had made a mistake,since it isn't possible to purchase a fractional welder. 
B) he needed to decrease his desired capacity cushion to bring him up to exactly three welders. 
C) he should buy two welders and authorize 10% overtime to reach the 2.2 figure. 
D) he should buy two welders and reduce the time per part by 10% to reduce the capacity need to two welders.

Question 8

Figure 4.1  
-A manager weighs three options for capacity cushion as depicted in Figure 4.1.If the dollar amounts expressed in the figure are cash flows,which option is optimal?

Accepted Answer

A) large cushion 
B) medium cushion 
C) small cushion 
D) Not enough information is given to select an option. 
A) large cushion 
B) medium cushion 
C) small cushion 
D) Not enough information is given to select an option.

Question 9

The single milling machine at Fred's Manufacturing was severely overloaded last year.The plant operates 8 hours per day,5 days per week,and 50 weeks per year.Management prefers a capacity cushion of 20 percent.Two major types of products are routed through the milling machine.The annual demand for product A is 4000 units and 3000 units for product B.The batch size for A is 20 units and 30 units for B.The standard processing time for A is 0.5 hours/unit and 0.8 for B.The standard setup time for product A is 2 hours and 8 hours for product B.How many new milling machines are required if Fred's does not resort to any short-term capacity options?

Accepted Answer

M = @#IMG-DLM& where M = number of machines requir

Question 10

A printing company works on three types of printing jobs,each of which could be produced on the same model printing machine.The predicted annual demands and typical order sizes are shown in the table.The company has 2000 production hours available each year and requires a 10% capacity cushion to allow for preventive maintenance,breakdowns,and other unforeseen circumstances.How many printing machines must they have under these circumstances?

Accepted Answer

The answer of A printing company works on three types...

Question 11

Define each of the following capacity strategies: expansionist,wait-and-see,and follow-the-leader.

Accepted Answer

Expansionist means large,infre

Question 12

Capacity is the maximum rate of output of a process.

Accepted Answer

A) True 
 B)False

Question 13

A smaller capacity cushion may be required if a process is highly capital intensive.

Accepted Answer

A) True 
 B)False

Question 14

A larger capacity cushion may be required due to variation in demand,changing product mix,or supply uncertainty.

Accepted Answer

A) True 
 B)False

Question 15

Input measures include such metrics as:

Accepted Answer

A) the number of customers served per hour. 
B) the number of trucks produced per day. 
C) the number of machine hours available. 
D) the number of bills processed in a week. 
A) the number of customers served per hour. 
B) the number of trucks produced per day. 
C) the number of machine hours available. 
D) the number of bills processed in a week.

Question 16

Use the information in Scenario 4.5.What action,if any,should the King Company take?

Accepted Answer

A) Do nothing-neither alternative provides a positive net present value after five years. 
B) Select Alternative #1. 
C) Select alternative #2. 
D) Either alternative may be selected,since the positive net present values are the same after five years. 
A) Do nothing-neither alternative provides a positive net present value after five years. 
B) Select Alternative #1. 
C) Select alternative #2. 
D) Either alternative may be selected,since the positive net present values are the same after five years.

Question 17

The seven-person maintenance function at a hospital performs both preventive and corrective maintenance on hundreds of items each month.All the workers are scheduled for 40 hours per week and there are four weeks in a month.It is the goal of the maintenance department to achieve 90% utilization with a mix of two-thirds preventive maintenance and one-third corrective maintenance.How many hours each month are spent performing preventive maintenance if they achieve their 90% utilization and correct/preventive mix targets?

Accepted Answer

Utilization = @#IMG-DLM& × 100%
Utilizat

Question 18

John Owen owns a drugstore that is experiencing significant growth.Owen is trying to decide whether to expand its capacity,which currently is $200,000 in sales per quarter.Sales are seasonal.Forecasts of capacity requirements,expressed in sales per quarter for the next year,follow.   Owen is considering expanding capacity to the $250,000 level in sales per quarter.The before-tax profit margin from additional sales is 15 percent.How much would before-tax profits increase next year because of this expansion?

Accepted Answer

A) less than $15,000 
B) more than $15,000 but less than $16,000 
C) more than $16,000 but less than $17,000 
D) more than $17,000 
A) less than $15,000 
B) more than $15,000 but less than $16,000 
C) more than $16,000 but less than $17,000 
D) more than $17,000

Question 19

George P.Burdell owns a hot tub store that is experiencing significant growth.Burdell is trying to decide whether to expand the store's capacity,which currently is at $750,000 in sales per quarter.He is thinking about expanding to the $850,000 level.The before-tax profit from additional sales is 20 percent.Sales are seasonal,with peaks in the spring and summer quarters.Forecasts of capacity requirements,expressed in ($000)sales per quarter,for next year (year 2)are:   Demand in year 3 and beyond is expected to exceed $850,000 per quarter.Burdell is considering expansion at the end of the fourth quarter of this year (year 1).How much would before-tax profits in year 2 increase because of this expansion?

Accepted Answer

A) less than $28,000 
B) more than $28,000 but less than $32,000 
C) more than $32,000 but less than $36,000 
D) more than $36,000 
A) less than $28,000 
B) more than $28,000 but less than $32,000 
C) more than $32,000 but less than $36,000 
D) more than $36,000

Question 20

If demand is increasing,and you also prefer to increase the time between capacity increments,then the size of increments should ________.

Accepted Answer

The answer of If demand is increasing,and you also prefer...

Input measures of capacity are inherently more accurate than output measures of capacity.

Which one of the following statements about capacity cushions is BEST?

A process's ________ is the length of time it takes to switch from making one type of product to another.

A ________ is the difference between demand and current capacity.

A well-educated operations manager used the capacity requirements equation to determine the number of crackerbox welders to purchase for the shop,given the standard time per unit,hours available per machine,among other relevant parameters.He studied the answer,2.2,and concluded that:

Figure 4.1 -A manager weighs three options for capacity cushion as depicted in Figure 4.1.If the dollar amounts expressed in the figure are cash flows,which option is optimal?

Define each of the following capacity strategies: expansionist,wait-and-see,and follow-the-leader.

Capacity is the maximum rate of output of a process.

A smaller capacity cushion may be required if a process is highly capital intensive.

A larger capacity cushion may be required due to variation in demand,changing product mix,or supply uncertainty.

Input measures include such metrics as:

Use the information in Scenario 4.5.What action,if any,should the King Company take?

If demand is increasing,and you also prefer to increase the time between capacity increments,then the size of increments should ________.

Using Operations to Create Value

Process Strategy and Analysis

Quality and Performance

Constraint Management

Lean Systems

Project Management

Forecasting

Inventory Management

Operations Planning and Scheduling

Resource Planning

Supply Chain Design

Supply Chain Logistic Networks

Supply Chain Integration

Supply Chain Sustainability

Decision Making

Waiting Lines

Special Inventory Models

Linear Programming

Simulation

Financial Analysis

Acceptance Sampling Plans

Measuring Output Rates

Learning Curve Analysis

Operations Scheduling

Layout

Filters

Exam 4: Capacity Planning

Input measures of capacity are inherently more accurate than output measures of capacity.

Which one of the following statements about capacity cushions is BEST?

A process's ________ is the length of time it takes to switch from making one type of product to another.

A ________ is the difference between demand and current capacity.

A well-educated operations manager used the capacity requirements equation to determine the number of crackerbox welders to purchase for the shop,given the standard time per unit,hours available per machine,among other relevant parameters.He studied the answer,2.2,and concluded that:

Figure 4.1 -A manager weighs three options for capacity cushion as depicted in Figure 4.1.If the dollar amounts expressed in the figure are cash flows,which option is optimal?

Define each of the following capacity strategies: expansionist,wait-and-see,and follow-the-leader.

Capacity is the maximum rate of output of a process.

A smaller capacity cushion may be required if a process is highly capital intensive.

A larger capacity cushion may be required due to variation in demand,changing product mix,or supply uncertainty.

Input measures include such metrics as:

Use the information in Scenario 4.5.What action,if any,should the King Company take?

If demand is increasing,and you also prefer to increase the time between capacity increments,then the size of increments should ________.

Using Operations to Create Value

Process Strategy and Analysis

Quality and Performance

Constraint Management

Lean Systems

Project Management

Forecasting

Inventory Management

Operations Planning and Scheduling

Resource Planning

Supply Chain Design

Supply Chain Logistic Networks

Supply Chain Integration

Supply Chain Sustainability

Decision Making

Waiting Lines

Special Inventory Models

Linear Programming

Simulation

Financial Analysis

Acceptance Sampling Plans

Measuring Output Rates

Learning Curve Analysis

Operations Scheduling

Layout

Filters