Question 1

How could the following service organizations measure capacity - a university, a restaurant, and pet groomer?

Accepted Answer

The answer of How could the following service organizations measure...

Question 2

Which of these capacity strategies has the benefit of the greatest level of productivity?

Accepted Answer

A) lead capacity strategy 
B) lag capacity strategy 
C) match capacity strategy 
D) flux capacity strategy

Question 3

How does conformance quality impact capacity?

Accepted Answer

The answer of How does conformance quality impact capacity?...

Question 4

For a given fixed cost and revenue, as the variable cost rises, the break-even point also rises.

Accepted Answer

A) True 
 B)False

Question 5

Virtual supply chains have the advantage of efficiency, but this advantage is gained in a trade-off with decreased flexibility.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

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.

Question 9

Students arrive at a professor's office every 20 minutes during final exam week according to a Poisson distribution. What is the probability that the professor's one hour afternoon nap will not be disrupted by any student arrivals?

Accepted Answer

A) 0.00 
B) 0.05 
C) 0.15 
D) 0.45

Question 10

The process step that limits throughput for the entire process chain is the ________.

Accepted Answer

The answer of The process step that limits throughput for...

Question 11

Capacity is the capability of a worker, machine, work center, plant, or organization to produce output per time period.

Accepted Answer

A) True 
 B)False

Exam 6: Managing Capacity

How could the following service organizations measure capacity - a university, a restaurant, and pet groomer?

Which of these capacity strategies has the benefit of the greatest level of productivity?

How does conformance quality impact capacity?

For a given fixed cost and revenue, as the variable cost rises, the break-even point also rises.

Virtual supply chains have the advantage of efficiency, but this advantage is gained in a trade-off with decreased flexibility.

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

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?

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

Students arrive at a professor's office every 20 minutes during final exam week according to a Poisson distribution. What is the probability that the professor's one hour afternoon nap will not be disrupted by any student arrivals?

The process step that limits throughput for the entire process chain is the ________.

Capacity is the capability of a worker, machine, work center, plant, or organization to produce output per time period.