Question 1

Unbalanced systems are evidenced by ....

Accepted Answer

A)  Top heavy operations
B)  Labor unrest
C)  Bottleneck operations
D)  Increasing capacities
E)  Assembly linesF) B) and E)
G) B) and D)

Question 2

Production units have an optimal rate of output where:

Accepted Answer

A)  total costs are minimum
B)  average unit costs are minimum
C)  marginal costs are minimum
D)  rate of output is maximum
E)  total revenue is maximumF) D) and E)
G) B) and C)

Question 3

Given the following information, what would efficiency be? Effective capacity = 80 units per day
Design capacity = 100 units per day
Utilization = 48%

Accepted Answer

A)  20%
B)  35%
C)  48%
D)  60%
E)  80%F) B) and C)
G) C) and E)

Question 4

How many HIV blood analyses would he have to perform in order to break even?

Accepted Answer

A)  12,000
B)  2,400
C)  3,000
D)  1,000
E)  5,000F) A) and B)
G) C) and D)

Question 5

Capacity planning decisions have both long-term and short-term considerations.Which of the following statements are true? (I)  Long-term considerations relate to the overall level of capacity.
(II)  Short-term considerations relate to the probable variations in capacity requirements.
(III)  Short-term considerations determine the "effective capacity."

Accepted Answer

A)  Only one of the three statements is true.
B)  I and II
C)  II and III
D)  I and III
E)  All three statements are correct.F) A) and B)
G) A) and C)

Question 6

What profit (loss) would there be for a quantity of 10,000?

Accepted Answer

The answer of What profit (loss) would there be for...

Question 7

What are total revenues for the break-even quantity?

Accepted Answer

The answer of What are total revenues for the break-even...

Question 8

What would the potential profit be if he were to split 4,000 cords of wood with this machine?

Accepted Answer

A)  $0
B)  $200,000
C)  $100,000
D)  $75,000
E)  $50,000F) C) and E)
G) A) and B)

Question 9

A firm is considering three capacity alternatives: A, B, andC.Alternative A would have an annual fixed cost of $100,000 and variable costs of $22 per unit.Alternative B would have annual fixed costs of $120,000 and variable costs of $20 per unit.Alternative C would have fixed costs of $80,000 and variable costs of $30 per unit.Revenue is expected to be $50 per unit.
(A) Which alternative has the lowest break-even quantity?
(B) Which alternative will produce the highest profits for an annual output of 10,000 units?
(C) Which alternative would require the lowest volume of output to generate an annual profit of $50,000?

Accepted Answer

The answer of A firm is considering three capacity alternatives:...

Question 10

The method of financial analysis which results in an equivalent interest rate is:

Accepted Answer

A)  payback
B)  net present value
C)  internal rate of return
D)  queuing
E)  cost-volumeF) C) and D)
G) A) and E)

Question 11

What would be the county's annual profit if they were to process 4,000 prisoners per year at this new location?

Accepted Answer

A)  $0
B)  $75,000
C)  $50,000
D)  $100,000
E)  $300,000F) A) and D)
G) All of the above

Question 12

Which of the following is not a strategy to manage service capacity?

Accepted Answer

A)  hiring extra workers
B)  backordering
C)  pricing and promotion
D)  part time workers
E)  subcontractingF) A) and E)
G) A) and D)

Question 13

How many cords of wood would he have to split with this machine to make a profit of $30,000?

Accepted Answer

A)  3,200
B)  1,500
C)  2,000
D)  1,000
E)  500F) A) and D)
G) A) and E)

Question 14

How many prisoners would they have to process annually to make a profit of $100,000 at this new location?

Accepted Answer

A)  5,000
B)  8,000
C)  2,000
D)  4,000
E)  6,000F) A) and B)
G) B) and E)

Question 15

The method of financial analysis which focuses on the length of time it takes to recover the initial cost of an investment is:

Accepted Answer

A)  payback
B)  net present value
C)  internal rate of return
D)  queuing
E)  cost-volumeF) A) and B)
G) C) and D)

Question 16

The current trend toward global operations has made capacity decisions much easier since we have the whole world in which to consider operations.

Accepted Answer

A) True 
 B)False

Question 17

Which of these factors wouldn't be subtracted from design capacity when calculating effective capacity?

Accepted Answer

A)  personal time
B)  maintenance
C)  scrap
D)  operating hours per day
E)  all of the above would be subtracted in the calculationF) C) and E)
G) None of the above

Question 18

When buying component parts, risk does not include:

Accepted Answer

A)  loss of control
B)  vendor viability
C)  interest rate fluctuations
D)  need to disclose proprietary information
E)  all are risk factorsF) C) and D)
G) B) and D)

Question 19

The break-even quantity can be determined by dividing the fixed costs by the difference between the revenue per unit and the variable cost per unit.

Accepted Answer

A) True 
 B)False

Question 20

Given the following information, what would efficiency be? Effective capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day

Accepted Answer

A)  40%
B)  50%
C)  60%
D)  80%
E)  90%F) All of the above
G) C) and E)

Exam 5: Strategic Capacity Planning for Products and Services

The current trend toward global operations has made capacity decisions much easier since we have the whole world in which to consider operations.

Correct Answer
verified

What profit (loss) would there be for a quantity of 10,000?

Correct Answer
verified

Given the following information, what would efficiency be? Effective capacity = 50 units per day Design capacity = 100 units per day Actual output = 30 units per day

Correct Answer
verified

What are total revenues for the break-even quantity?

Correct Answer
verified

The method of financial analysis which focuses on the length of time it takes to recover the initial cost of an investment is:

Correct Answer
verified

Production units have an optimal rate of output where:

Correct Answer
verified

Correct Answer
verified

How many HIV blood analyses would he have to perform in order to break even?

Correct Answer
verified

Unbalanced systems are evidenced by ....

Correct Answer
verified

The method of financial analysis which results in an equivalent interest rate is:

Correct Answer
verified

What would the potential profit be if he were to split 4,000 cords of wood with this machine?

Correct Answer
verified

When buying component parts, risk does not include:

Correct Answer
verified

Which of these factors wouldn't be subtracted from design capacity when calculating effective capacity?

Correct Answer
verified

How many prisoners would they have to process annually to make a profit of $100,000 at this new location?

Correct Answer
verified

Given the following information, what would efficiency be? Effective capacity = 80 units per day Design capacity = 100 units per day Utilization = 48%

Correct Answer
verified

Which of the following is not a strategy to manage service capacity?

Correct Answer
verified

Correct Answer
verified

The break-even quantity can be determined by dividing the fixed costs by the difference between the revenue per unit and the variable cost per unit.

Correct Answer
verified

How many cords of wood would he have to split with this machine to make a profit of $30,000?

Correct Answer
verified

What would be the county's annual profit if they were to process 4,000 prisoners per year at this new location?

Correct Answer
verified

Exam 5: Strategic Capacity Planning for Products and Services

The current trend toward global operations has made capacity decisions much easier since we have the whole world in which to consider operations.

Correct AnswerverifiedShow Answer

What profit (loss) would there be for a quantity of 10,000?

Correct AnswerverifiedShow Answer

Given the following information, what would efficiency be? Effective capacity = 50 units per day Design capacity = 100 units per day Actual output = 30 units per day

Correct AnswerverifiedShow Answer

What are total revenues for the break-even quantity?

Correct AnswerverifiedShow Answer

The method of financial analysis which focuses on the length of time it takes to recover the initial cost of an investment is:

Correct AnswerverifiedShow Answer

Production units have an optimal rate of output where:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

How many HIV blood analyses would he have to perform in order to break even?

Correct AnswerverifiedShow Answer

Unbalanced systems are evidenced by ....

Correct AnswerverifiedShow Answer

The method of financial analysis which results in an equivalent interest rate is:

Correct AnswerverifiedShow Answer

What would the potential profit be if he were to split 4,000 cords of wood with this machine?

Correct AnswerverifiedShow Answer

When buying component parts, risk does not include:

Correct AnswerverifiedShow Answer

Which of these factors wouldn't be subtracted from design capacity when calculating effective capacity?

Correct AnswerverifiedShow Answer

How many prisoners would they have to process annually to make a profit of $100,000 at this new location?

Correct AnswerverifiedShow Answer

Given the following information, what would efficiency be? Effective capacity = 80 units per day Design capacity = 100 units per day Utilization = 48%

Correct AnswerverifiedShow Answer

Which of the following is not a strategy to manage service capacity?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The break-even quantity can be determined by dividing the fixed costs by the difference between the revenue per unit and the variable cost per unit.

Correct AnswerverifiedShow Answer

How many cords of wood would he have to split with this machine to make a profit of $30,000?

Correct AnswerverifiedShow Answer

What would be the county's annual profit if they were to process 4,000 prisoners per year at this new location?

Correct AnswerverifiedShow Answer

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