BUSI 411 Exam 2
Question 1
Which of the following is a key question in capacity planning?
Selected Answer: When do we need the capacity?
Question 2
Utilization is defined as the ratio of:
Selected Answer: actual output to design capacity.
Question 3
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
Selected Answer: 25%
Question 4
An alternative will have fixed costs of $10,000 per month, variable costs of
$50 per unit, and revenue of $70 per unit. The break-even point volume is:
Selected Answer: 500.
Question 5
, A Virginia county is considering whether to pay $50,000 per year to lease a
prisoner transfer facility in a prime location near Washington, D.C. They
estimate it will cost $50 per prisoner to process the paperwork at this new
location. The county is paid a $75 commission for each new prisoner they
process. How many prisoners would they have to process annually to break
even at this new location?
Selected Answer: 2,000
Question 6
An operations strategy for process selection should recognize that:
Selected Answer: flexibility is not always the best choice.
Question 7
Computer-aided manufacturing refers to the use of computers in:
Selected Answer: process control.
Question 8
A company needs to locate three departments (X, Y, and Z) in the three areas
(I, II, and III) of a new facility. They want to minimize interdepartmental
transportation costs, which are expected to be $.50 per load per meter moved.
An analyst has prepared the following distances and flow matrices:
Distances (meters)
From/
I II III
To
I - 10 20
II - 10
III -
Question 1
Which of the following is a key question in capacity planning?
Selected Answer: When do we need the capacity?
Question 2
Utilization is defined as the ratio of:
Selected Answer: actual output to design capacity.
Question 3
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
Selected Answer: 25%
Question 4
An alternative will have fixed costs of $10,000 per month, variable costs of
$50 per unit, and revenue of $70 per unit. The break-even point volume is:
Selected Answer: 500.
Question 5
, A Virginia county is considering whether to pay $50,000 per year to lease a
prisoner transfer facility in a prime location near Washington, D.C. They
estimate it will cost $50 per prisoner to process the paperwork at this new
location. The county is paid a $75 commission for each new prisoner they
process. How many prisoners would they have to process annually to break
even at this new location?
Selected Answer: 2,000
Question 6
An operations strategy for process selection should recognize that:
Selected Answer: flexibility is not always the best choice.
Question 7
Computer-aided manufacturing refers to the use of computers in:
Selected Answer: process control.
Question 8
A company needs to locate three departments (X, Y, and Z) in the three areas
(I, II, and III) of a new facility. They want to minimize interdepartmental
transportation costs, which are expected to be $.50 per load per meter moved.
An analyst has prepared the following distances and flow matrices:
Distances (meters)
From/
I II III
To
I - 10 20
II - 10
III -
