UTA OPMA-3306 Chapter 4 Practice
Exam with complete solutions A+
The level of capacity for which a process was designed and at which it operates at
minimum cost. - correct answer ✔✔Best operating level
A facility has a maximum capacity of 4,000 units per day using overtime and
skipping the daily maintenance routine. At 3,500 units per day, the facility
operates at a level where average cost per unit is minimized. Currently, the
process is scheduled to operate at a level of 3,000 units per day. What is the
capacity utilization rate? - correct answer ✔✔85.7%
The concept that relates to gaining efficiency through the full utilization of
dedicated resources, such as people and equipment. - correct answer
✔✔Economies of scale
A facility that limits its production to a single product or a set of very similar
products. - correct answer ✔✔Focused factory
When multiple (usually similar) products can be produced in a facility less
expensively than a single product. - correct answer ✔✔Economies of scope
The ability to serve more customers than expected. - correct answer ✔✔Capacity
cushion
In considering a capacity expansion we have two alternatives. The first alternative
is expected to cost $1,000,000 and has an expected profit of $500,000 over the
Exam with complete solutions A+
The level of capacity for which a process was designed and at which it operates at
minimum cost. - correct answer ✔✔Best operating level
A facility has a maximum capacity of 4,000 units per day using overtime and
skipping the daily maintenance routine. At 3,500 units per day, the facility
operates at a level where average cost per unit is minimized. Currently, the
process is scheduled to operate at a level of 3,000 units per day. What is the
capacity utilization rate? - correct answer ✔✔85.7%
The concept that relates to gaining efficiency through the full utilization of
dedicated resources, such as people and equipment. - correct answer
✔✔Economies of scale
A facility that limits its production to a single product or a set of very similar
products. - correct answer ✔✔Focused factory
When multiple (usually similar) products can be produced in a facility less
expensively than a single product. - correct answer ✔✔Economies of scope
The ability to serve more customers than expected. - correct answer ✔✔Capacity
cushion
In considering a capacity expansion we have two alternatives. The first alternative
is expected to cost $1,000,000 and has an expected profit of $500,000 over the
