POM Exam Review Questions and
Answers4
Hybrid layouts - ANSWERS -Combine aspects of both process and product layouts
Fixed-Position layouts - ANSWERS -Product is too large to move; e.g. a building
Process Layouts (characteristics) - ANSWERS -able to produce large number of different
products
labor intensive facilities
slower processing rates
Item Cost - ANSWERS -Includes price paid for the item plus
other direct costs associated with
the purchase
Holding Costs - ANSWERS -Include the variable expenses
incurred by the plant related to the
volume of inventory held (15-25%)
Capital Costs - ANSWERS -The higher of the cost of capital or
the opportunity cost for the company
Answers4
Hybrid layouts - ANSWERS -Combine aspects of both process and product layouts
Fixed-Position layouts - ANSWERS -Product is too large to move; e.g. a building
Process Layouts (characteristics) - ANSWERS -able to produce large number of different
products
labor intensive facilities
slower processing rates
Item Cost - ANSWERS -Includes price paid for the item plus
other direct costs associated with
the purchase
Holding Costs - ANSWERS -Include the variable expenses
incurred by the plant related to the
volume of inventory held (15-25%)
Capital Costs - ANSWERS -The higher of the cost of capital or
the opportunity cost for the company
