AN 300 EXAM 2 QUESTIONS AND ANSWERS
The maximum output that can be achieved by a facility is
Storage space
Productivity
Lead time
Capacity
Cycle counting - Answers :Capacity
An example of an output measure of capacity is
Number of cars per shift
Number of machine centers
Floor space
Number of forklifts
Labor hours - Answers :Number of cars per shift
The ratio of actual output rate to capacity is
Utilization
Productivity
Cycle time
Effectiveness
Throughput - Answers :Utilization
Economies of scale occur when a company is operating
-below its best operating level and decreases its output
-above its best operating level and increases its output
-below its best operating level and increases its output
-at its best operating level and decreases its output
-at its best operating level and increases its output - Answers :Below its best operating
level and increases its output
Solving a decision tree that involves maximizing profit includes
-Inverting decision nodes
-Calculating expected values for all chance events before considering decision nodes
-Calculating from left to right
-Selecting the decision alternative with the highest expected value
-Using probabilities to calculate expected values for decision points - Answers
:Selecting the decision alternative with the highest expected value
A manufacturer of printed circuit boards has a design capacity of 1,000 boards per day.
The effective capacity, however, is 700 boards per day. Recently the production facility
,has been producing 950 boards per day. What is the design capacity utilization
measure?
142.86%
73.68%
105.26%
135.71%
95.00% - Answers :95.00%
A manufacturer of printed circuit boards has a design capacity of 1,000 boards per day.
The effective capacity, however, is 700 boards per day. Recently the production facility
has been producing 950 boards per day. What is the effective capacity utilization
measure?
142.86%
105.26%
135.71%
73.68%
95.00% - Answers :135.71%
C&A clinic has a design capacity of 60 patients per hour and an effective capacity of 40
patients per hour. Yesterday the clinic was open for 9 hours and treated 694 patients.
What is the design utilization (in %)? - Answers :128.52%
Under which of the following conditions should a facility be expanded immediately?
A. Both design and effective utilization rates are greater than 1.
B. Effective utilization rate is less than 1.
C. Design utilization rate is less than 1.
D. Design utilization rate is greater than 1.
E. Effective utilization rate is greater than 1 but design utilization rate is less than 1.
F. Both design and effective utilization rates are less than 1. - Answers :A, D
The owners of Sweet-Tooth Bakery have determined that they need to expand their
facility in order to meet their increased demand for baked goods. The decision is
whether to expand now with a large facility or expand small with the possibility of having
to expand again in 5 years. The owners have estimated the following chances for
demand:
• The likelihood of demand being high is 0.70.
• The likelihood of demand being low is 0.30
Profit for each alternative have been estimated as follows:
• Large expansion has an estimated profitability of either $80,000 or $50,000,
depending on whether demand turns out to be high or low.
• Small expansion has a profitability of $40,000, assuming demand is low.
• Small expansion with an occurrence of high demand would require expanding further.
If the bakery expands at this point, the profitability is to be $50,000.
, What decision should the bakery make, and what is the expected - Answers :Large
expansion now, $71,000
C&A Health Club currently has 500 members paying an annual membership fee of
$120. It is considering adding a swimming pool at a cost of $10,000. The addition of the
pool will increase its variable costs from $50 to $70 per members. C&A can test market
the demand for a swimming pool or bypass the test market and add the pool right away.
If the pool is a success, C&A will be able to attract an additional 300 members to its club
and at the same time increases its annual membership fee by $30 per member.
However, if it is a failure,
C&A will not expect to see any increase in membership nor fee. C&A believes the
probability of success for the pool is 50% if the pool is added without the test market.
The other option is to conduct a test market and then decide whether or not to add the
pool. The cost of the test market is $5,000. The probability of a positive test market
result is estimated to be 60%. C&A will add the p - Answers :54000
C&A Health Club currently has 500 members paying an annual membership fee of
$120. It is considering adding a swimming pool at a cost of $10,000. The addition of the
pool will increase its variable costs from $50 to $70 per members. C&A can test market
the demand for a swimming pool or bypass the test market and add the pool right away.
If the pool is a success, C&A will be able to attract an additional 300 members to its club
and at the same time increases its annual membership fee by $30 per member.
However, if it is a failure,
C&A will not expect to see any increase in membership nor fee. C&A believes the
probability of success for the pool is 50% if the pool is added without the test market.
The other option is to conduct a test market and then decide whether or not to add the
pool. The cost of the test market is $5,000. The probability of a positive test market
result is estimated to be 60%. C&A will add th - Answers :15000
C&A Health Club currently has 500 members paying an annual membership fee of
$120. It is considering adding a swimming pool at a cost of $10,000. The addition of the
pool will increase its variable costs from $50 to $70 per members. C&A can test market
the demand for a swimming pool or bypass the test market and add the pool right away.
If the pool is a success, C&A will be able to attract an additional 300 members to its club
and at the same time increases its annual membership fee by $30 per member.
However, if it is a failure,
C&A will not expect to see any increase in membership nor fee. C&A believes the
probability of success for the pool is 50% if the pool is added without the test market.
The maximum output that can be achieved by a facility is
Storage space
Productivity
Lead time
Capacity
Cycle counting - Answers :Capacity
An example of an output measure of capacity is
Number of cars per shift
Number of machine centers
Floor space
Number of forklifts
Labor hours - Answers :Number of cars per shift
The ratio of actual output rate to capacity is
Utilization
Productivity
Cycle time
Effectiveness
Throughput - Answers :Utilization
Economies of scale occur when a company is operating
-below its best operating level and decreases its output
-above its best operating level and increases its output
-below its best operating level and increases its output
-at its best operating level and decreases its output
-at its best operating level and increases its output - Answers :Below its best operating
level and increases its output
Solving a decision tree that involves maximizing profit includes
-Inverting decision nodes
-Calculating expected values for all chance events before considering decision nodes
-Calculating from left to right
-Selecting the decision alternative with the highest expected value
-Using probabilities to calculate expected values for decision points - Answers
:Selecting the decision alternative with the highest expected value
A manufacturer of printed circuit boards has a design capacity of 1,000 boards per day.
The effective capacity, however, is 700 boards per day. Recently the production facility
,has been producing 950 boards per day. What is the design capacity utilization
measure?
142.86%
73.68%
105.26%
135.71%
95.00% - Answers :95.00%
A manufacturer of printed circuit boards has a design capacity of 1,000 boards per day.
The effective capacity, however, is 700 boards per day. Recently the production facility
has been producing 950 boards per day. What is the effective capacity utilization
measure?
142.86%
105.26%
135.71%
73.68%
95.00% - Answers :135.71%
C&A clinic has a design capacity of 60 patients per hour and an effective capacity of 40
patients per hour. Yesterday the clinic was open for 9 hours and treated 694 patients.
What is the design utilization (in %)? - Answers :128.52%
Under which of the following conditions should a facility be expanded immediately?
A. Both design and effective utilization rates are greater than 1.
B. Effective utilization rate is less than 1.
C. Design utilization rate is less than 1.
D. Design utilization rate is greater than 1.
E. Effective utilization rate is greater than 1 but design utilization rate is less than 1.
F. Both design and effective utilization rates are less than 1. - Answers :A, D
The owners of Sweet-Tooth Bakery have determined that they need to expand their
facility in order to meet their increased demand for baked goods. The decision is
whether to expand now with a large facility or expand small with the possibility of having
to expand again in 5 years. The owners have estimated the following chances for
demand:
• The likelihood of demand being high is 0.70.
• The likelihood of demand being low is 0.30
Profit for each alternative have been estimated as follows:
• Large expansion has an estimated profitability of either $80,000 or $50,000,
depending on whether demand turns out to be high or low.
• Small expansion has a profitability of $40,000, assuming demand is low.
• Small expansion with an occurrence of high demand would require expanding further.
If the bakery expands at this point, the profitability is to be $50,000.
, What decision should the bakery make, and what is the expected - Answers :Large
expansion now, $71,000
C&A Health Club currently has 500 members paying an annual membership fee of
$120. It is considering adding a swimming pool at a cost of $10,000. The addition of the
pool will increase its variable costs from $50 to $70 per members. C&A can test market
the demand for a swimming pool or bypass the test market and add the pool right away.
If the pool is a success, C&A will be able to attract an additional 300 members to its club
and at the same time increases its annual membership fee by $30 per member.
However, if it is a failure,
C&A will not expect to see any increase in membership nor fee. C&A believes the
probability of success for the pool is 50% if the pool is added without the test market.
The other option is to conduct a test market and then decide whether or not to add the
pool. The cost of the test market is $5,000. The probability of a positive test market
result is estimated to be 60%. C&A will add the p - Answers :54000
C&A Health Club currently has 500 members paying an annual membership fee of
$120. It is considering adding a swimming pool at a cost of $10,000. The addition of the
pool will increase its variable costs from $50 to $70 per members. C&A can test market
the demand for a swimming pool or bypass the test market and add the pool right away.
If the pool is a success, C&A will be able to attract an additional 300 members to its club
and at the same time increases its annual membership fee by $30 per member.
However, if it is a failure,
C&A will not expect to see any increase in membership nor fee. C&A believes the
probability of success for the pool is 50% if the pool is added without the test market.
The other option is to conduct a test market and then decide whether or not to add the
pool. The cost of the test market is $5,000. The probability of a positive test market
result is estimated to be 60%. C&A will add th - Answers :15000
C&A Health Club currently has 500 members paying an annual membership fee of
$120. It is considering adding a swimming pool at a cost of $10,000. The addition of the
pool will increase its variable costs from $50 to $70 per members. C&A can test market
the demand for a swimming pool or bypass the test market and add the pool right away.
If the pool is a success, C&A will be able to attract an additional 300 members to its club
and at the same time increases its annual membership fee by $30 per member.
However, if it is a failure,
C&A will not expect to see any increase in membership nor fee. C&A believes the
probability of success for the pool is 50% if the pool is added without the test market.
