BUSI 411 Operations Management Final Exam 2. Questions & Answers
Liberty University BUSI 411 Operations Management Final Exam 2. Questions & Answers
... [Show More] (Graded A)
NB: EVERY ANSWER IS CORRECT
Question 1
Which of the following is a key question in capacity planning?
Answer: When do we need the capacity?
Question 2
Utilization is defined as the ratio of:
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
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:
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?
Answer: 2,000
Question 6
An operations strategy for process selection should recognize that:
Answer: Flexibility is not always the best choice.
Question 7
Computer-aided manufacturing refers to the use of computers in:
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/To I II III
I - 10 20
II - 10
III -
Flows (loads per week)
From/To X Y Z
X - 60 90
Y 40 - 160
Z 110 140 -
What is the distance (in meters) from area III to area I in this new facility?
Answer: 20
Question 9
QRS Corp. is designing a product layout for a new product. They plan to use this production line 10 hours a day in order to meet forecasted demand of 900 units per day. The following table describes the tasks necessary to produce this product:
Task Time(secs) Immediate
Predecessor
a 34 none
b 20 a
c 10 b
d 16 b
e 10 c
f 24 d,e
g 38 f
For output to equal forecasted demand, what will be the efficiency of the production line that uses the least number of workstations?
Answer: 95 percent
Question 10
What is it about job shops that make them appropriate for products in the introductory phase of their life cycle?
Answer: flexibility
Question 11
Which of the following most closely describes job enlargement?
Answer: horizontal loading
Question 12
A methods and measurements analyst for Digital Devices needs to develop a time standard for the task of assembling a computer mouse. In a preliminary study, she observed one of her workers perform this task six times with the following results:
Observation 1 2 3 4 5 6
Time(Seconds) 46 38 40 34 42 40
What is the normal time for this task if the employee worked at a 20 percent faster pace than average?
Answer: 48 seconds
Question 13
The symbols for operation, storage, transportation, inspection, and delay would usually be found on which type of chart?
Answer: flow process
Question 14
A methods and measurements analyst for Timepiece, Inc., needs to develop a time standard for the task of attaching a watch to a wristband. In a preliminary study, he observed one of his workers perform this task five times, with the following results:
Observation 1 2 3 4 5
Time(Seconds) 27 19 20 21 13
How many observations should be made if he wants to be 95.44 percent confident that the maximum error in the observed time is one second? Assume that the standard deviation of the task time is five seconds.
Answer: 100
Question 15
A methods and measurement analyst wants to develop a time standard for a certain task. In a preliminary study, he observed one worker perform the task six times with an average observed time of 20 seconds and a standard deviation of two seconds.
What is the normal time for this task if the employee worked at a 20 percent faster pace than average?
Answer: 24 seconds
Question 16
Nearness to raw materials would be most important to a:
Answer: Manufacturing company.
Question 17
A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows:
Location FC (annual) VC (per unit)
Atlanta $ 80,000 $ 20
Phoenix $ 140,000 $ 16
________________________________________
What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?
Answer: $300,000
Question 18
Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?
Answer: $102,500
Question 19
A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network.
Location (x, y)
A 2, 3
B 3, 7
C 5, 5
D 7, 3
E 8, 7
________________________________________
If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?
Answer: 5, 5
Question 20
The center of gravity method is used to _______ travel time or shipping costs.
Answer: minimize
Question 21
Capacity planning requires an analysis of needs: what kind, how much, and when.
Selected Answer: True
Question 22
The goal of line balancing is to assign tasks to workstations in such a way that the workstations have approximately equal time requirements.
Answer: True
Question 23
Predetermined time standards use historical data from a company's own files.
Answer: False
Question 24
Web-based, retail businesses should be located near the customer to reduce their long distance phone charges.
Answer: False
Question 25
The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.
Answer: False [Show Less]