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Exam 5: Strategic Capacity Planning for Products and Services

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Question 41

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What are total costs to buy a quantity of 15,000 units per year?

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Question 42

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How many HIV blood analyses would he have to perform in order to make a profit of $15,000?

A) 3,000
B) 4,800
C) 5,000
D) 12,000
E) 3,750

F) A) and B)
G) A) and C)

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Question 43

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If, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is anticipated to be 35 cords per day, what would be its utilization?

Outsourcing some production is a means of _________ a capacity constraint.

At the break-even point:

Which of the following is not a determinant of effective capacity?

If their holding area at this new location has design and effective capacities of 10,000 and 7,500 prisoners processed annually, respectively, and they plan to be 80% efficient in their use of this space, how many prisoners does the county plan to process per year?

Suppose operation X feeds directly into operation Y.All of X's output goes to Y, and Y has no other operations feeding into it.X has a design capacity of 80 units per hour and an effective capacity of 72 units per hour.Y has a design capacity of 100 units per hour.What is Y's maximum possible utilization?

Seasonal variations are often easier to deal with in capacity planning than random variations because seasonal variations tend to be:

What would be your total costs for the preferred alternative, for 32,000 units per year?

For what range of output would you prefer to buy?

A basic question in capacity planning is:

How many rosebushes would she have to produce and sell in order to break even?

The greater the gap between current and desired capacity the greater the opportunity for profit.

According to the reading on restaurant sourcing practices, only fast-food restaurants are able to 'bring' in outsourced foods.

Given the following information, what would utilization be? Effective capacity = 20 units per day Design capacity = 60 units per day Actual output = 15 units per day

If this new blood analysis machine has design and effective capacities of 6,000 and 5,000 blood analyses per year, respectively, and Dr.J.expects to perform 4,500 HIV blood analyses each year, what will be the utilization of this machine?

Which of the following is a tactic that helps service capacity management?

If, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected to be 32 cords per day, what would be its efficiency?

Utilization is defined as the ratio of effective capacity to design capacity.