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An auto service center that specializes in oil changes has two
service bays that serve, on average, a total of 24 cars per eight-
hour business day. On average, each bay can finish one oil
change in 30 minutes.
What is the design capacity?
24 oil
changes
30 oil
changes
32 oil
changes
48 oil changes - ANSWER-32 oil
changes
,An oil refinery receives crude oil on a regular basis, which must
be refined into five different octane-rated gasoline formulas and
diesel. Demand for these fuels is easy to predict. The cost to
refine the oil decreases rapidly depending on the size of the
refinery that refines the oil.
Based on this information, which process strategy should the
oil refinery use in
its refining
process?
Job shop
Batch flow
Mass customization
Continuous flow - ANSWER-Continuous flow
A company wants to establish a new gas station in a location
with heavy traffic. The company performs a traffic analysis for
four locations during four different time periods. The table
below depicts the number of cars that passed each location
during the four time periods:
Time Period Main Street Fell Avenue Veterans Parkway
Market Street
,Midnight - 6:00 a.m. 1,000 500
1,500 750
6:00 a.m. - noon 4,500 6,000 5,500
4,000
Noon - 6:00 p.m. 6,000 4,500 6,000
5,000
6:00 p.m. - midnight 2,500 1,500
3,000 6,000
Which location should the company choose for the new gas
station?
Main
Street
Fell
Avenue
Veterans
Parkway
Market Street - ANSWER-Veterans
Parkway
A hospital administrator needs to determine how many beds to
make available for exam rooms, operating rooms, and in-
patient care. The hospital board announces they will be getting
more patient referrals from specialists at a newly opened clinic.
, What should the adminstrator use to forecast how many
beds to make
available, given the increased number of
patients?
Simple moving average using data from prior years
Weighted moving average using patient referral data
Panel of experts
Buildup method - ANSWER-Weighted moving average using
patient referral data
A furniture company receives an order for 100 dining tables with
four legs each.
The planner has determined that the projected number of legs
on hand is 60 units. If there is no previously scheduled
production for legs, what will be the
planned production of
legs?
400
340
240
160 - ANSWER-
340