ISOM 351 TEST 2 CORRECT 100%
true - ANSWERTrue or False: Capacity can be expressed by output or input measures.
capacity gap - ANSWERA ________ is the difference between demand and current
capacity
false - ANSWERTrue or False: Input measures of capacity are inherently more accurate
than output measures of capacity.
true - ANSWERTrue or false: An expansionist capacity strategy involves large,
infrequent jumps in capacity, where a wait-and-see strategy involves smaller, more
frequent jumps.
false - ANSWERTrue or false: A capacity cushion is the amount of inventory that a firm
maintains to handle sudden increases in demand or temporary loss of production
capacity.
true - ANSWERTrue or false: One reason economies of scale drive down cost is the
spreading of fixed costs.
setup time - ANSWERA process's [x]________ is the length of time it takes to switch
from making one type of product to another.
capacity cushion - ANSWER[x]________ is the amount of reserve capacity that a firm
maintains to handle a sudden increase in demand or temporary losses of production
capacity.
Utilization - ANSWER________ is the degree to which equipment, space, or labor is
currently being used.
Long-term capacity plan - ANSWERPlans deal with investments in new facilities and
equipment.
economies of scale - ANSWERThe average unit cost of a service or good can be
reduced by increasing its output rate
large cushion - ANSWERIt is appropriate when demand varies significantly
Wait-and-see strategy - ANSWERIt involves smaller, more frequent jumps
output measure - ANSWERIt is appropriate for high-volume processes with little product
variety
83.3
, utilization= (average output rate/maximum capacity)*100
(25/30)*100 - ANSWERLucy's Pancake House, a no-frills diner along a major interstate,
has discovered that if precious employee time is not wasted on frivolous duties such as
cleaning work surfaces, properly storing ingredients, and pest control, they can achieve
an average output rate of 25 customers per hour. If the diner was designed to
accommodate a maximum of 30 customers per hour, what is the percent utilization?
(use: 1 decimal point)
capacity - ANSWER[a]________ is the maximum rate of output for a process.
6
required processing time: standard demand*standard processing time
required setup processing time= (annual demand/order size)*set up time
total hours required for setup and processing
=total hours required/(total production hours*(1-capacity cushion))+total hours
required/(total production hours*(1-capacity cushion))+total hours required/(total
production hours*(1-capacity cushion))
A: RPT: 4,800 RSPT: 150 total: 4,950
B: RPT: 3,000 RSPT: 30 total: 3,030
C: RPT: 1,250 RSPT: 50 total: 1,300
total production hours*1-capacity cushion: 2000*(1-.1)=1800
4950/1800 + 3030/1800 + 1300/1800
2.75+1.68+.72=5.15
rounded = 6 - ANSWERA 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? (Please round up the
number to the closest total number of machines)
Job Type: Job A, Job B, Job C
Demand: 6000, 4000, 5000
Process time per unit: .8, .75, .25
Average order size: 40, 100, 50
true - ANSWERTrue or False: Capacity can be expressed by output or input measures.
capacity gap - ANSWERA ________ is the difference between demand and current
capacity
false - ANSWERTrue or False: Input measures of capacity are inherently more accurate
than output measures of capacity.
true - ANSWERTrue or false: An expansionist capacity strategy involves large,
infrequent jumps in capacity, where a wait-and-see strategy involves smaller, more
frequent jumps.
false - ANSWERTrue or false: A capacity cushion is the amount of inventory that a firm
maintains to handle sudden increases in demand or temporary loss of production
capacity.
true - ANSWERTrue or false: One reason economies of scale drive down cost is the
spreading of fixed costs.
setup time - ANSWERA process's [x]________ is the length of time it takes to switch
from making one type of product to another.
capacity cushion - ANSWER[x]________ is the amount of reserve capacity that a firm
maintains to handle a sudden increase in demand or temporary losses of production
capacity.
Utilization - ANSWER________ is the degree to which equipment, space, or labor is
currently being used.
Long-term capacity plan - ANSWERPlans deal with investments in new facilities and
equipment.
economies of scale - ANSWERThe average unit cost of a service or good can be
reduced by increasing its output rate
large cushion - ANSWERIt is appropriate when demand varies significantly
Wait-and-see strategy - ANSWERIt involves smaller, more frequent jumps
output measure - ANSWERIt is appropriate for high-volume processes with little product
variety
83.3
, utilization= (average output rate/maximum capacity)*100
(25/30)*100 - ANSWERLucy's Pancake House, a no-frills diner along a major interstate,
has discovered that if precious employee time is not wasted on frivolous duties such as
cleaning work surfaces, properly storing ingredients, and pest control, they can achieve
an average output rate of 25 customers per hour. If the diner was designed to
accommodate a maximum of 30 customers per hour, what is the percent utilization?
(use: 1 decimal point)
capacity - ANSWER[a]________ is the maximum rate of output for a process.
6
required processing time: standard demand*standard processing time
required setup processing time= (annual demand/order size)*set up time
total hours required for setup and processing
=total hours required/(total production hours*(1-capacity cushion))+total hours
required/(total production hours*(1-capacity cushion))+total hours required/(total
production hours*(1-capacity cushion))
A: RPT: 4,800 RSPT: 150 total: 4,950
B: RPT: 3,000 RSPT: 30 total: 3,030
C: RPT: 1,250 RSPT: 50 total: 1,300
total production hours*1-capacity cushion: 2000*(1-.1)=1800
4950/1800 + 3030/1800 + 1300/1800
2.75+1.68+.72=5.15
rounded = 6 - ANSWERA 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? (Please round up the
number to the closest total number of machines)
Job Type: Job A, Job B, Job C
Demand: 6000, 4000, 5000
Process time per unit: .8, .75, .25
Average order size: 40, 100, 50
