Question 1

Identify the six tactics for matching capacity to demand.

Accepted Answer

1.Making staffing changes (increasing or...

Question 2

An assembly line has 10 stations with times of 1,2,3,4,…,10,respectively.What is the bottleneck time?

Accepted Answer

A)  18.18% of the throughput time
B)  100% of the throughput time
C)  550% of the throughput time
D)  50% of the throughput time
E)  1.82% of the throughput timeF) D) and E)
G) C) and D)

Question 3

Utilization will always be lower than efficiency because:

Accepted Answer

A)  effective capacity is less than design capacity.
B)  effective capacity is greater than design capacity.
C)  effective capacity equals design capacity.
D)  expected output is less than actual output.
E)  expected output is less than rated capacity.F) A) and B)
G) A) and C)

Question 4

The Academic Computing Center has five trainers available in its computer labs to provide training sessions to students.Assume that the design capacity of the system is 1900 students per semester and that effective capacity equals 90% of design capacity.If the number of students who actually got their orientation session is 1500,what is the efficiency of the system?

Accepted Answer

A)  1350 students
B)  1710 students
C)  78.9%
D)  87.7%
E)  90%F) B) and E)
G) D) and E)

Question 5

________ analysis finds the point at which costs equal revenues.

Accepted Answer

The answer of ________ analysis finds the point at which...

Question 6

The basic break-even model can be modified to handle more than one product.This extension of the basic model requires:

Accepted Answer

A)  price and sales volume for each product.
B)  price and variable cost for each product,and the percent of sales that each product represents.
C)  that the firm have very low fixed costs.
D)  that the ratio of variable cost to price be the same for all products.
E)  sales volume for each product.F) B) and E)
G) A) and D)

Question 7

The theory of constraints has its origins in:

Accepted Answer

A)  linear programming theory.
B)  the theory of economies of scale.
C)  material requirements planning.
D)  the theory of finite capacity planning.
E)  Goldratt and Cox's book,The Goal: A Process of Ongoing Improvement.F) A) and C)
G) None of the above E

Question 8

The net present value of $10,000 to be received in exactly three years is considerably greater than $10,000.

Accepted Answer

A) True 
 B)False

Question 9

Break-even analysis is a powerful analytical tool,but is useful only when the organization produces a single product.

Accepted Answer

A) True 
 B)False

Question 10

The capacity planning strategy that delays adding capacity until capacity is below demand,then adds a capacity increment so that capacity is above demand,is said to ________ demand.

Accepted Answer

The answer of The capacity planning strategy that delays adding...

Question 11

One limitation of the net present value approach to investments is that investments with identical net present values may have very different cash flows.

Accepted Answer

A) True 
 B)False  True

Question 12

Net present value:

Accepted Answer

A)  is gross domestic product less depreciation.
B)  is sales volume less sales and excise taxes.
C)  is profit after taxes.
D)  ignores the time value of money.
E)  is the discounted value of a series of future cash receipts.F) C) and E)
G) A) and B)

Question 13

Net present value will be greater:

Accepted Answer

A)  as a fixed set of cash receipts occurs later rather than earlier.
B)  if the future value of a cash flow is smaller.
C)  for one end-of-year receipt of $1200 than for twelve monthly receipts of $100 each.
D)  for a 4% discount rate than for a 6% discount rate.
E)  All of the above are true.F) B) and C)
G) A) and C) D

Question 14

A factory produces 1000 units a month.If design capacity is 3000 and efficiency is 50% find utilization and effective capacity.

Accepted Answer

Output = Utilization ∗ Design Capacity g...

Question 15

Expected output is sometimes referred to as rated capacity.

Accepted Answer

A) True 
 B)False

Question 16

A work system has five stations that have process times of 5,9,4,9,and 8.What is the throughput time of the system?

Accepted Answer

A)  4
B)  9
C)  18
D)  35
E)  7F) B) and E)
G) C) and D)

Question 17

An executive conference center has the physical ability to handle 1,100 participants.However,conference management personnel believe that only 1,000 participants can be handled effectively for most events.The last event,although forecasted to have 1,000 participants,resulted in the attendance of only 950 participants.What are the utilization and efficiency of the conference facility?

Accepted Answer

Design Capacity = 1,100 partic...

Question 18

A new machine tool is expected to generate receipts as follows: $5,000 in year one; $3,000 in year two,nothing in the next year,and $2,000 in the fourth year.At an interest rate of 6%,what is the net present value of these receipts? Is this a better net present value than $2,500 each year over four years? Explain.

Accepted Answer

S = R × X = 300 × 3,000 × 3.46...

Question 19

Effective capacity is the:

Accepted Answer

A)  maximum output of a system in a given period.
B)  capacity a firm expects to achieve given the current operating constraints.
C)  average output that can be achieved under ideal conditions.
D)  minimum usable capacity of a particular facility.
E)  sum of all of the organization's inputs.F) None of the above
G) B) and D)

Question 20

________ is actual output as a percent of design capacity.

Accepted Answer

The answer of ________ is actual output as a percent...

Exam 8: Capacity and Constraint Management

Identify the six tactics for matching capacity to demand.

Correct Answer
verified
1.Making staffing changes (increasing or...
View Answer

An assembly line has 10 stations with times of 1,2,3,4,…,10,respectively.What is the bottleneck time?

Correct Answer
verified

Utilization will always be lower than efficiency because:

Correct Answer
verified

Correct Answer
verified

________ analysis finds the point at which costs equal revenues.

Correct Answer
verified

The basic break-even model can be modified to handle more than one product.This extension of the basic model requires:

Correct Answer
verified

The theory of constraints has its origins in:

Correct Answer
verified
E

The net present value of $10,000 to be received in exactly three years is considerably greater than $10,000.

Correct Answer
verified

Break-even analysis is a powerful analytical tool,but is useful only when the organization produces a single product.

Correct Answer
verified

The capacity planning strategy that delays adding capacity until capacity is below demand,then adds a capacity increment so that capacity is above demand,is said to ________ demand.

Correct Answer
verified

One limitation of the net present value approach to investments is that investments with identical net present values may have very different cash flows.

Correct Answer
verified
True

Net present value:

Correct Answer
verified

Net present value will be greater:

Correct Answer
verified
D

A factory produces 1000 units a month.If design capacity is 3000 and efficiency is 50% find utilization and effective capacity.

Correct Answer
verified
Output = Utilization ∗ Design Capacity g...
View Answer

Expected output is sometimes referred to as rated capacity.

Correct Answer
verified

A work system has five stations that have process times of 5,9,4,9,and 8.What is the throughput time of the system?

Correct Answer
verified

Correct Answer
verified
Design Capacity = 1,100 partic...
View Answer

Correct Answer
verified
S = R × X = 300 × 3,000 × 3.46...
View Answer

Effective capacity is the:

Correct Answer
verified

________ is actual output as a percent of design capacity.

Correct Answer
verified

Exam 8: Capacity and Constraint Management

Identify the six tactics for matching capacity to demand.

Correct Answerverified1.Making staffing changes (increasing or...View AnswerShow Answer

An assembly line has 10 stations with times of 1,2,3,4,…,10,respectively.What is the bottleneck time?

Correct AnswerverifiedShow Answer

Utilization will always be lower than efficiency because:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

________ analysis finds the point at which costs equal revenues.

Correct AnswerverifiedShow Answer

The basic break-even model can be modified to handle more than one product.This extension of the basic model requires:

Correct AnswerverifiedShow Answer

The theory of constraints has its origins in:

Correct AnswerverifiedE

The net present value of $10,000 to be received in exactly three years is considerably greater than $10,000.

Correct AnswerverifiedShow Answer

Break-even analysis is a powerful analytical tool,but is useful only when the organization produces a single product.

Correct AnswerverifiedShow Answer

The capacity planning strategy that delays adding capacity until capacity is below demand,then adds a capacity increment so that capacity is above demand,is said to ________ demand.

Correct AnswerverifiedShow Answer

One limitation of the net present value approach to investments is that investments with identical net present values may have very different cash flows.

Correct AnswerverifiedTrue

Net present value:

Correct AnswerverifiedShow Answer

Net present value will be greater:

Correct AnswerverifiedD

A factory produces 1000 units a month.If design capacity is 3000 and efficiency is 50% find utilization and effective capacity.

Correct AnswerverifiedOutput = Utilization ∗ Design Capacity g...View AnswerShow Answer

Expected output is sometimes referred to as rated capacity.

Correct AnswerverifiedShow Answer

A work system has five stations that have process times of 5,9,4,9,and 8.What is the throughput time of the system?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedDesign Capacity = 1,100 partic...View AnswerShow Answer

Correct AnswerverifiedS = R × X = 300 × 3,000 × 3.46...View AnswerShow Answer

Effective capacity is the:

Correct AnswerverifiedShow Answer

________ is actual output as a percent of design capacity.

Correct AnswerverifiedShow Answer

Correct Answer
verified
1.Making staffing changes (increasing or...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
E

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified
Output = Utilization ∗ Design Capacity g...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Design Capacity = 1,100 partic...
View Answer

Correct Answer
verified
S = R × X = 300 × 3,000 × 3.46...
View Answer

Correct Answer
verified

Correct Answer
verified