AN 300 – Exam 2 Study Guide and Review Material
The maximum output rate that can be achieved by a facility under ideal conditions is: - correct
answer ✔✔ Design Capacity
Solving a decision tree that involves maximizing profit includes all of the following EXCEPT: -
correct answer ✔✔ Calculating from left to right
Location decisions are particularly important because: - correct answer ✔✔ They can have a
large impact on operating costs and revenues
Which of the following is a distance-based method for location alternatives evaluation? - correct
answer ✔✔ Center of gravity approach
Which of the following would imply that data observations are widely spread out around the
mean? - correct answer ✔✔ Large range and large standard deviation
For which of the following would a control chart for attributes not be appropriate? - correct
answer ✔✔ Length of metal rods
Suppose that you want to measure the percentage of candles that are cut longer than 9 inches.
Which control chart would be appropriate? - correct answer ✔✔ Proportion chart
Capacity Planning: - correct answer ✔✔ The process of establishing the output rate (i.e.,
capacity) that can be achieved by a facility
Facility - correct answer ✔✔ Any establishment for manufacturing and/or service activities, e.g.,
an entire organization, a department, a machine, etc.
, Over-planning/too much capacity - correct answer ✔✔ Idle resources, overstock, wastes
Under-planning/not enough capacity - correct answer ✔✔ Unmet demand, lost sales, unhappy
customers
Input measure - correct answer ✔✔ Labor hours, floor space, etc
Output measure - correct answer ✔✔ Daily revenue, monthly sales volume
Design capacity - correct answer ✔✔ Maximum output rate under ideal conditions
Effective capacity - correct answer ✔✔ Maximum output rate under normal conditions
Drawing a tree - correct answer ✔✔ - Draw from left to right
- Use square nodes to indicate decision points
- Label the decision branches
- Use circular nodes to indicate chance events
- Label the event branches with its probability of occurrence
- Write the outcome for each alternative
Solving a tree - correct answer ✔✔ -Work from right to left
- Compute the expected value at each circular node
- Choose the alternative with the highest expected value
The maximum output rate that can be achieved by a facility under ideal conditions is: - correct
answer ✔✔ Design Capacity
Solving a decision tree that involves maximizing profit includes all of the following EXCEPT: -
correct answer ✔✔ Calculating from left to right
Location decisions are particularly important because: - correct answer ✔✔ They can have a
large impact on operating costs and revenues
Which of the following is a distance-based method for location alternatives evaluation? - correct
answer ✔✔ Center of gravity approach
Which of the following would imply that data observations are widely spread out around the
mean? - correct answer ✔✔ Large range and large standard deviation
For which of the following would a control chart for attributes not be appropriate? - correct
answer ✔✔ Length of metal rods
Suppose that you want to measure the percentage of candles that are cut longer than 9 inches.
Which control chart would be appropriate? - correct answer ✔✔ Proportion chart
Capacity Planning: - correct answer ✔✔ The process of establishing the output rate (i.e.,
capacity) that can be achieved by a facility
Facility - correct answer ✔✔ Any establishment for manufacturing and/or service activities, e.g.,
an entire organization, a department, a machine, etc.
, Over-planning/too much capacity - correct answer ✔✔ Idle resources, overstock, wastes
Under-planning/not enough capacity - correct answer ✔✔ Unmet demand, lost sales, unhappy
customers
Input measure - correct answer ✔✔ Labor hours, floor space, etc
Output measure - correct answer ✔✔ Daily revenue, monthly sales volume
Design capacity - correct answer ✔✔ Maximum output rate under ideal conditions
Effective capacity - correct answer ✔✔ Maximum output rate under normal conditions
Drawing a tree - correct answer ✔✔ - Draw from left to right
- Use square nodes to indicate decision points
- Label the decision branches
- Use circular nodes to indicate chance events
- Label the event branches with its probability of occurrence
- Write the outcome for each alternative
Solving a tree - correct answer ✔✔ -Work from right to left
- Compute the expected value at each circular node
- Choose the alternative with the highest expected value
