FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Capacity Planning

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Essay

Review LaterAdd Note

Review Later

A printing company works on three types of printing jobs,each of which could be produced on the same model printing machine.The predicted annual demands and typical order sizes are shown in the table.The company has 2000 production hours available each year and requires a 10% capacity cushion to allow for preventive maintenance,breakdowns,and other unforeseen circumstances.They have floor space for five printing machines.If the time needed to set up a printing machine to switch from one job to the next is identical for all three job types,what must their setup time be to achieve their required output?

Correct Answer

verified

It can't be done;the production time req...

View Answer

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

A manufacturing plant is capable of producing 10 tons of product per day when it runs three shifts with no breakdowns and plenty of raw materials.Over the past week,the plant has produced an average of 7.3 tons per day because the third shift has devoted much of their time to preventive maintenance.What is the utilization of the plant?

A) 10 tons/day
B) 7) 3 tons/day
C) 137%
D) 73%

E) A) and B)
F) All of the above

Correct Answer

verified

Show Answer

Question 23

True/False

Review LaterAdd Note

A capacity cushion is the amount of inventory that a firm maintains to handle sudden increases in demand or temporary loss of production capacity.

Output measures are used for estimating capacity requirements when product variety and process divergence are high.

What is a capacity cushion? Provide examples of capacity cushions in a university setting and an automotive producer.

Capacity planning requires a demand forecast for an extended period of time into the future.What concerns would you have regarding an extended forecast as a capacity planner?

Use the information in Scenario 4.5.What is the pre-tax cash flow (net present value) for alternative #1 compared to the base case of doing nothing for the next five years?

A standard work year is 2000 hours at the Luther Mill and it takes about an hour and a half to fill a customer order.The manager at the mill is always concerned about employee idle time,so he aims for a capacity cushion of two percent.Last year saw 15,000 customer orders at the mill and the manager has a new John Deere in mind as a company car,so he hopes that there is an increase of 15% in customer orders for next year.How many workers will the manager need to have at the mill next year?

The degree to which equipment,space,or labor is being used is commonly referred to as:

________ is the degree to which equipment,space,or labor is currently being used.

Give four principal reasons economies of scale can occur when output increases.Provide examples of each for a service firm.

A standard work year is 2000 hours at the Luther Mill and it takes about an hour and a half to fill a customer order.Last year saw 15,000 customer orders at the mill and the manager has a new John Deere in mind as a company car,so he hopes that there is an increase of 15% in customer orders for next year.If the manager hires fourteen workers,what is the capacity cushion?

It takes a service rep an average of two minutes to take a customer's information.Over the course of a work week,the rep handles 160 calls a day during her eight hour shift.What is the service rep's capacity cushion?

The ________ concept states that the average unit cost of a service or good can be reduced by increasing its output rate.

A planning horizon is defined as the period beyond which the company does not have customer orders.

What is a waiting line model,and what information can it provide?

Sleep Tight Motel has the opportunity to purchase an adjacent plot of land.Building on this land would increase their capacity from the current sales level of $515,000/year to $600,000/year.Sleep Tight experiences a 20 percent before-tax profit margin.It wishes to estimate the additional before-tax profits that the expansion will produce.Using the following information,how much more before-tax cash flow would be realized just in year 10 alone?

________ is the amount of reserve capacity that a firm maintains to handle a sudden increase in demand or temporary losses of production capacity.

________ occurs when the average cost per unit increases as the facility's size increases.

Waiting line models are often used for capacity planning.