Deck 7: Constraint Management
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Deck 7: Constraint Management
1
A bottleneck is an operation that has the lowest effective capacity of any operation in the process.
True
2
The final step in applying the Theory of Constraints is to repeat the first four steps.
True
3
A business school with plenty of classroom space that hires adjunct faculty for a semester to meet unusually high student demand for courses is an example of elevating a bottleneck.
True
4
The Theory of Constraints method is also referred to as the drum-buffer-rope method.
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5
In a shop managed according to TOC principles,inventory is needed only in front of bottlenecks in order to prevent them from sitting idle.
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6
The process with the least capacity is called a bottleneck if its output is still greater than the market demand.
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7
Line balancing is the assignment of work to stations in a line to achieve the desired output rate with the smallest number of workstations.
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8
Short term capacity planning should be driven by identification and management of bottlenecks.
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9
Lanny discovers that the bottleneck is the riveting machine so he schedules all production around when that machine is available.This is an example of elevating the constraint in the five-step constraint management process.
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10
A bottleneck process has the lowest capacity and the longest total time from the start to the finish.
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11
Any system composed of resources that are operating at maximum output will,by definition,have maximum output for the entire system.
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12
Line balancing applies only to line processes that do assembly work,or to work that can be bundled in many ways to create the jobs for each workstation in the line.
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13
The first step in applying the Theory of Constraints is to identify the constraint.
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14
Immediate predecessors are the smallest units of work that can be performed independently.
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15
The process with the least capacity is called a bottleneck if its output is less than market demand.
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16
A competent operations manager should first eliminate all of the bottlenecks from the process.
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17
Operating processes close to their capacity can result in low customer satisfaction and even losing money despite high sales levels.
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18
The balance delay is the amount by which efficiency falls short of 100 percent.
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19
According to the Theory of Constraints,the four operational measures include inventory,throughput,delivery lead times and utilization.
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20
Line balancing strives to create workstations so that the capacity utilization for the bottleneck is much higher than for the other workstations in the line.
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21
The focus for a process improvement exercise should be on balancing:
A)flow.
B)capacity.
C)workload.
D)time.
A)flow.
B)capacity.
C)workload.
D)time.
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22
There are three consecutive steps in a customer service process.The first two steps are each capable of serving 25 customers per hour while the third step can process only 20 customers per hour.Which of the following statements regarding this system is true?
A)The entire system is capable of processing 25 customers per hour.
B)There are floating bottlenecks in the system.
C)If the first two steps are run at full capacity,then the third step has a waiting line.
D)The first and second steps are bottlenecks for the system.
A)The entire system is capable of processing 25 customers per hour.
B)There are floating bottlenecks in the system.
C)If the first two steps are run at full capacity,then the third step has a waiting line.
D)The first and second steps are bottlenecks for the system.
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23
To generate the maximum output,the cycle time should be set as the longest elemental task time.
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24
Practical application of the Theory of Constraints involves the implementation of all of the following steps EXCEPT:
A)Identify the system bottleneck(s).
B)Exploit the bottleneck(s).
C)Reduce the capacity at the bottleneck(s).
D)Elevate the bottleneck(s).
A)Identify the system bottleneck(s).
B)Exploit the bottleneck(s).
C)Reduce the capacity at the bottleneck(s).
D)Elevate the bottleneck(s).
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25
Table 7.1
The figure above shows the call routing process for a customer service call center.Incoming calls are routed,depending on the complexity of the caller's request.Simple request are routed to work center B,while the more complex calls are routed to work center C (which also takes simple calls when not busy).The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.1.What is the 8-hour capacity for the process?
A)24 calls
B)17.1 calls
C)40 calls
D)48 calls

Use the information in Table 7.1.What is the 8-hour capacity for the process?
A)24 calls
B)17.1 calls
C)40 calls
D)48 calls
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26
Use the process flow diagram to determine which of these events has the greatest net benefit. 
A)reducing the flow time at Station A from 10 to 8 minutes
B)increasing the capacity at Station B to 12 units per hour
C)increasing the capacity at Station C to 10 units per hour
D)reducing the flow time at Station D from 12 to 10 minutes

A)reducing the flow time at Station A from 10 to 8 minutes
B)increasing the capacity at Station B to 12 units per hour
C)increasing the capacity at Station C to 10 units per hour
D)reducing the flow time at Station D from 12 to 10 minutes
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27
Table 7.1
The figure above shows the call routing process for a customer service call center.Incoming calls are routed,depending on the complexity of the caller's request.Simple request are routed to work center B,while the more complex calls are routed to work center C (which also takes simple calls when not busy).The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.1.What is the throughput time for the process,assuming that the Call Center is always busy and has customers waiting to be processed?
A)24 minutes
B)18 minutes
C)20 minutes
D)22 minutes

Use the information in Table 7.1.What is the throughput time for the process,assuming that the Call Center is always busy and has customers waiting to be processed?
A)24 minutes
B)18 minutes
C)20 minutes
D)22 minutes
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28
Which of the following statements regarding setups is TRUE?
A)Unusually high setup times result in higher utilization.
B)Processes are generating output throughout the entire setup process.
C)A machine used in a line process would probably have fewer setups than a batch process.
D)A TOC analyst would not be concerned with setup times on non-bottleneck machines.
A)Unusually high setup times result in higher utilization.
B)Processes are generating output throughout the entire setup process.
C)A machine used in a line process would probably have fewer setups than a batch process.
D)A TOC analyst would not be concerned with setup times on non-bottleneck machines.
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29
The second step in Theory of Constraints application,"exploit the bottleneck(s)," means that the analyst should:
A)create a schedule that maximizes the throughput of the bottlenecks.
B)repeat the analysis process to look for other bottlenecks.
C)consider increasing capacity of the bottleneck.
D)schedule non-bottleneck resources to support the bottleneck.
A)create a schedule that maximizes the throughput of the bottlenecks.
B)repeat the analysis process to look for other bottlenecks.
C)consider increasing capacity of the bottleneck.
D)schedule non-bottleneck resources to support the bottleneck.
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30
Work should be released into the system when:
A)a customer order is received.
B)the first step in the process is idle.
C)a customer order is completed.
D)the bottlenecks need work.
A)a customer order is received.
B)the first step in the process is idle.
C)a customer order is completed.
D)the bottlenecks need work.
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31
Consider consecutive processes A-B-C,where process A has a capacity of 20 units per hour,process B has a capacity of 25 units per hour,and process C has a capacity of 30 units per hour.Where would an operations manager want any inventory?
A)in front of process A
B)in front of process B
C)in front of process C
D)Inventory should not exist anywhere.
A)in front of process A
B)in front of process B
C)in front of process C
D)Inventory should not exist anywhere.
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32
Paced lines require that inventory storage areas be placed between stations.
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33
A mixed-model line produces several items belonging to the same family.
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34
Table 7.1
The figure above shows the call routing process for a customer service call center.Incoming calls are routed,depending on the complexity of the caller's request.Simple request are routed to work center B,while the more complex calls are routed to work center C (which also takes simple calls when not busy).The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.1.What is the process bottleneck?
A)A
B)B and C together
C)D
D)E

Use the information in Table 7.1.What is the process bottleneck?
A)A
B)B and C together
C)D
D)E
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35
The third step in Theory of Constraints application,"subordinate all other decisions to Step 2," means that the analyst should:
A)wait for authorization before proceeding with any system-wide changes.
B)schedule non-bottleneck processes to support the bottleneck schedule.
C)seek to increase capacity of only the bottleneck resources.
D)should seek to increase capacity of both the bottleneck and non-bottleneck resources.
A)wait for authorization before proceeding with any system-wide changes.
B)schedule non-bottleneck processes to support the bottleneck schedule.
C)seek to increase capacity of only the bottleneck resources.
D)should seek to increase capacity of both the bottleneck and non-bottleneck resources.
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36
Use the process flow diagram to determine which of these events has the greatest net benefit. 
A)reducing the flow time at Station A from 8 to 7 minutes
B)increasing the capacity at Station B to 8 units per hour
C)increasing the capacity at Station C to 7 units per hour
D)reducing the flow time at Station D from 9 to 8 minutes

A)reducing the flow time at Station A from 8 to 7 minutes
B)increasing the capacity at Station B to 8 units per hour
C)increasing the capacity at Station C to 7 units per hour
D)reducing the flow time at Station D from 9 to 8 minutes
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37
The fifth step in Theory of Constraints application,"do not let inertia set in," means that the analyst should:
A)create a schedule that maximizes the throughput of the bottlenecks.
B)repeat the analysis to identify and manage new set of constraints.
C)consider increasing capacity of the bottleneck.
D)schedule non-bottleneck resources to support the bottleneck.
A)create a schedule that maximizes the throughput of the bottlenecks.
B)repeat the analysis to identify and manage new set of constraints.
C)consider increasing capacity of the bottleneck.
D)schedule non-bottleneck resources to support the bottleneck.
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38
The fourth step in Theory of Constraints application,"elevate the bottleneck(s)," means that the analyst should:
A)create a schedule that maximizes the throughput of the bottlenecks.
B)repeat the analysis process to look for other bottlenecks.
C)consider increasing capacity of the bottleneck.
D)schedule non-bottleneck resources to support the bottleneck.
A)create a schedule that maximizes the throughput of the bottlenecks.
B)repeat the analysis process to look for other bottlenecks.
C)consider increasing capacity of the bottleneck.
D)schedule non-bottleneck resources to support the bottleneck.
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39
According to the Theory of Constraints,the four operational measures of capacity include all of the following EXCEPT:
A)inventory.
B)throughput.
C)utilization.
D)delivery lead times.
A)inventory.
B)throughput.
C)utilization.
D)delivery lead times.
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40
Use the process flow diagram to determine which of these events has the greatest net benefit. 
A)reducing the flow time at Station A from 8 to 7 minutes
B)increasing the capacity at Station B to 12 units per hour
C)increasing the capacity at Station C to 9 units per hour
D)reducing the flow time at Station D from 6 to 5 minutes

A)reducing the flow time at Station A from 8 to 7 minutes
B)increasing the capacity at Station B to 12 units per hour
C)increasing the capacity at Station C to 9 units per hour
D)reducing the flow time at Station D from 6 to 5 minutes
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41
Table 7.4
The figure above shows the process for customers arriving at Hobbies Unlimited for several advertised crafts demonstrations.After signing in,customers are routed to different locations in the store for the two different programs provided.The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.4.How many customers can be processed through the A-B-C-D-G routing during a 4-hour evening session?
A)48
B)24
C)32
D)12

Use the information in Table 7.4.How many customers can be processed through the A-B-C-D-G routing during a 4-hour evening session?
A)48
B)24
C)32
D)12
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42
Table 7.2
The figure above shows the process for paying tuition at a major university.Students are provided their bill for the next term for review,then routed to different tables for questions to be answered before finally paying their tuition at E.The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.2.If 60% of the students are routed to C and 40% are routed to D,what is the average capacity per hour for the process?
A)10 students per hour
B)6.5 student per hour
C)8 students per hour
D)8.4 students per hour

Use the information in Table 7.2.If 60% of the students are routed to C and 40% are routed to D,what is the average capacity per hour for the process?
A)10 students per hour
B)6.5 student per hour
C)8 students per hour
D)8.4 students per hour
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43
Table 7.2
The figure above shows the process for paying tuition at a major university.Students are provided their bill for the next term for review,then routed to different tables for questions to be answered before finally paying their tuition at E.The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.2.What is the throughput time for the A-B-D-E process route?
A)17 minutes
B)27 minutes
C)21 minutes
D)19 minutes

Use the information in Table 7.2.What is the throughput time for the A-B-D-E process route?
A)17 minutes
B)27 minutes
C)21 minutes
D)19 minutes
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44
Table 7.2
The figure above shows the process for paying tuition at a major university.Students are provided their bill for the next term for review,then routed to different tables for questions to be answered before finally paying their tuition at E.The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.2.What is the capacity for the A-B-C-E process route?
A)10 students per hour
B)6 student per hour
C)3.5 students per hour
D)2.9 students per hour

Use the information in Table 7.2.What is the capacity for the A-B-C-E process route?
A)10 students per hour
B)6 student per hour
C)3.5 students per hour
D)2.9 students per hour
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45
Table 7.5
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand for each product is 80 units per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.5.Using the traditional method,what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?
A)71 A,80B,80C,80 D
B)80A,72B,80C,80D
C)80A,80B,60C,80D
D)80A,80B,80C,70D
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.5.Using the traditional method,what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?
A)71 A,80B,80C,80 D
B)80A,72B,80C,80D
C)80A,80B,60C,80D
D)80A,80B,80C,70D
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46
Table 7.3
The figure above shows the process for customers arriving at Pierre's Spa and Salon.After signing in,customers are routed to different locations in the Spa for the two different services provided.The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.3.What is the throughput time for the A-B-C-D -H routing?
A)48 minutes
B)30 minutes
C)53 minutes
D)23 minutes

Use the information in Table 7.3.What is the throughput time for the A-B-C-D -H routing?
A)48 minutes
B)30 minutes
C)53 minutes
D)23 minutes
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47
Table 7.2
The figure above shows the process for paying tuition at a major university.Students are provided their bill for the next term for review,then routed to different tables for questions to be answered before finally paying their tuition at E.The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.2.Where would you expect student wait times to occur?
A)D only
B)B,C and D
C)A only
D)E only

Use the information in Table 7.2.Where would you expect student wait times to occur?
A)D only
B)B,C and D
C)A only
D)E only
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48
Table 7.5
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand for each product is 80 units per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.5.Which work center is of greatest concern to the operations manager?
A)Work Center W
B)Work Center X
C)Work Center Y
D)Work Center Z
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.5.Which work center is of greatest concern to the operations manager?
A)Work Center W
B)Work Center X
C)Work Center Y
D)Work Center Z
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49
Table 7.3
The figure above shows the process for customers arriving at Pierre's Spa and Salon.After signing in,customers are routed to different locations in the Spa for the two different services provided.The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.3.What is the throughput time for the A-B-E-F-G-H routing?
A)48 minutes
B)30 minutes
C)53 minutes
D)23 minutes

Use the information in Table 7.3.What is the throughput time for the A-B-E-F-G-H routing?
A)48 minutes
B)30 minutes
C)53 minutes
D)23 minutes
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50
Table 7.2
The figure above shows the process for paying tuition at a major university.Students are provided their bill for the next term for review,then routed to different tables for questions to be answered before finally paying their tuition at E.The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.2.What is the capacity for the A-B-D-E process route?
A)10 students per hour
B)6 student per hour
C)3.5 students per hour
D)2.9 students per hour

Use the information in Table 7.2.What is the capacity for the A-B-D-E process route?
A)10 students per hour
B)6 student per hour
C)3.5 students per hour
D)2.9 students per hour
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51
Table 7.5
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand for each product is 80 units per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.5.Using the traditional method,what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?
A)less than or equal to $8,100
B)greater than $8,100 but less than or equal to $8,300
C)greater than $8,300 but less than or equal to $8,500
D)greater than $8,500
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.5.Using the traditional method,what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?
A)less than or equal to $8,100
B)greater than $8,100 but less than or equal to $8,300
C)greater than $8,300 but less than or equal to $8,500
D)greater than $8,500
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52
Table 7.5
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand for each product is 80 units per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.5.Using the traditional method,in what sequence should products be scheduled for production?
A)D,C,B,A
B)D,B,A,C
C)C,D,A,B
D)C,D,B,A
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.5.Using the traditional method,in what sequence should products be scheduled for production?
A)D,C,B,A
B)D,B,A,C
C)C,D,A,B
D)C,D,B,A
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Table 7.4
The figure above shows the process for customers arriving at Hobbies Unlimited for several advertised crafts demonstrations.After signing in,customers are routed to different locations in the store for the two different programs provided.The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.4.How many customers can be processed through the A-B-E-F-G routing during a 4-hour evening session?
A)8
B)24
C)12
D)32

Use the information in Table 7.4.How many customers can be processed through the A-B-E-F-G routing during a 4-hour evening session?
A)8
B)24
C)12
D)32
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54
Table 7.5
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand for each product is 80 units per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.5.Using the traditional method,which product should be scheduled first?
A)Product A
B)Product B
C)Product C
D)Product D
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.5.Using the traditional method,which product should be scheduled first?
A)Product A
B)Product B
C)Product C
D)Product D
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55
Table 7.4
The figure above shows the process for customers arriving at Hobbies Unlimited for several advertised crafts demonstrations.After signing in,customers are routed to different locations in the store for the two different programs provided.The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.4.What is the throughput time for the A-B-C-D-G routing?
A)25 minutes
B)70 minutes
C)105 minutes
D)60 minutes

Use the information in Table 7.4.What is the throughput time for the A-B-C-D-G routing?
A)25 minutes
B)70 minutes
C)105 minutes
D)60 minutes
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56
Table 7.4
The figure above shows the process for customers arriving at Hobbies Unlimited for several advertised crafts demonstrations.After signing in,customers are routed to different locations in the store for the two different programs provided.The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.4.What is the throughput time for the A-B-E-F-G routing?
A)25 minutes
B)70 minutes
C)105 minutes
D)60 minutes

Use the information in Table 7.4.What is the throughput time for the A-B-E-F-G routing?
A)25 minutes
B)70 minutes
C)105 minutes
D)60 minutes
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57
Table 7.1
The figure above shows the call routing process for a customer service call center.Incoming calls are routed,depending on the complexity of the caller's request.Simple request are routed to work center B,while the more complex calls are routed to work center C (which also takes simple calls when not busy).The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.1.Where would you expect customer wait times to occur?
A)D only
B)C and D
C)A only
D)E only

Use the information in Table 7.1.Where would you expect customer wait times to occur?
A)D only
B)C and D
C)A only
D)E only
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58
Table 7.2
The figure above shows the process for paying tuition at a major university.Students are provided their bill for the next term for review,then routed to different tables for questions to be answered before finally paying their tuition at E.The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.2.What is the throughput time for the A-B-C-E process route?
A)17 minutes
B)27 minutes
C)21 minutes
D)19 minutes

Use the information in Table 7.2.What is the throughput time for the A-B-C-E process route?
A)17 minutes
B)27 minutes
C)21 minutes
D)19 minutes
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59
Table 7.5
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand for each product is 80 units per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.5.Using the bottleneck method,which product should be scheduled first?
A)Product A
B)Product B
C)Product C
D)Product D
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.5.Using the bottleneck method,which product should be scheduled first?
A)Product A
B)Product B
C)Product C
D)Product D
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Table 7.3
The figure above shows the process for customers arriving at Pierre's Spa and Salon.After signing in,customers are routed to different locations in the Spa for the two different services provided.The numbers in parentheses are the time in minutes for each step of the process.
Use the information in Table 7.3.What is the process bottleneck?
A)H
B)B
C)C
D)D

Use the information in Table 7.3.What is the process bottleneck?
A)H
B)B
C)C
D)D
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61
Table 7.6
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.
In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.6.Which machine is the bottleneck operation?
A)Machine 1
B)Machine 2
C)Machine 3
D)Machine 4
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.

Use the information in Table 7.6.Which machine is the bottleneck operation?
A)Machine 1
B)Machine 2
C)Machine 3
D)Machine 4
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Table 7.6
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.
In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.6.Using the traditional method,which product should be scheduled first?
A)Product E
B)Product S
C)Product P
D)Product N
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.

Use the information in Table 7.6.Using the traditional method,which product should be scheduled first?
A)Product E
B)Product S
C)Product P
D)Product N
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Table 7.6
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.
In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.6.Using the bottleneck method,which product should be scheduled first?
A)Product E
B)Product S
C)Product P
D)Product N
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.

Use the information in Table 7.6.Using the bottleneck method,which product should be scheduled first?
A)Product E
B)Product S
C)Product P
D)Product N
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64
Table 7.7
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand is 50 As,60 Bs,70 Cs,and 80 Ds per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.7.Using the bottleneck method,in what sequence should products be scheduled for production?
A)A,D,B,C
B)D,A,B,C
C)A,D,C,B
D)D,A,C,B
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.7.Using the bottleneck method,in what sequence should products be scheduled for production?
A)A,D,B,C
B)D,A,B,C
C)A,D,C,B
D)D,A,C,B
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Table 7.7
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand is 50 As,60 Bs,70 Cs,and 80 Ds per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.7.Using the traditional method,what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?
A)less than or equal to $6,500
B)greater than $6,500 but less than or equal to $6,700
C)greater than $6,700 but less than or equal to $6,900
D)greater than $6,900
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.7.Using the traditional method,what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?
A)less than or equal to $6,500
B)greater than $6,500 but less than or equal to $6,700
C)greater than $6,700 but less than or equal to $6,900
D)greater than $6,900
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Table 7.7
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand is 50 As,60 Bs,70 Cs,and 80 Ds per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.7.Using the traditional method,what is the optimal product mix?
A)37 A,60 B,70 C,80 D
B)50 A,51 B,70 C,80 D
C)50 A,60 B,62 C,80 D
D)50 A,60 B,70 C,60 D
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.7.Using the traditional method,what is the optimal product mix?
A)37 A,60 B,70 C,80 D
B)50 A,51 B,70 C,80 D
C)50 A,60 B,62 C,80 D
D)50 A,60 B,70 C,60 D
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67
Table 7.6
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.
In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.6.Using the traditional method,what is the profit if Burdell manufactures the optimal product mix?
A)less than or equal to $10,000
B)greater than $10,000 but less than or equal to $13,000
C)greater than $13,000 but less than or equal to $16,000
D)greater than $16,000
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.

Use the information in Table 7.6.Using the traditional method,what is the profit if Burdell manufactures the optimal product mix?
A)less than or equal to $10,000
B)greater than $10,000 but less than or equal to $13,000
C)greater than $13,000 but less than or equal to $16,000
D)greater than $16,000
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68
Table 7.7
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand is 50 As,60 Bs,70 Cs,and 80 Ds per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.7.Which work center is the bottleneck operation?
A)Work Center W
B)Work Center X
C)Work Center Y
D)Work Center Z
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.7.Which work center is the bottleneck operation?
A)Work Center W
B)Work Center X
C)Work Center Y
D)Work Center Z
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69
Table 7.5
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand for each product is 80 units per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.5.Using the bottleneck method,in what sequence should products be scheduled for production?
A)D.C.B.A
B)D,C,A,B
C)C,D,A,B
D)C,D,B,A
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.5.Using the bottleneck method,in what sequence should products be scheduled for production?
A)D.C.B.A
B)D,C,A,B
C)C,D,A,B
D)C,D,B,A
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70
Table 7.5
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand for each product is 80 units per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.5.Using the bottleneck method,what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?
A)71 A,80B,80C,80 D
B)80A,72B,80C,80D
C)80A,80B,60C,80D
D)80A,80B,80C,70D
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.5.Using the bottleneck method,what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?
A)71 A,80B,80C,80 D
B)80A,72B,80C,80D
C)80A,80B,60C,80D
D)80A,80B,80C,70D
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71
Table 7.6
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.
In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.6.Using the bottleneck method,what is the optimal product mix?
A)80 E,65 S,35 P,20 N
B)60 E,20 S,50 P,33 N
C)120 E,90 S,60 P,55 N
D)80 E,65 S,30 P,20 N
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.

Use the information in Table 7.6.Using the bottleneck method,what is the optimal product mix?
A)80 E,65 S,35 P,20 N
B)60 E,20 S,50 P,33 N
C)120 E,90 S,60 P,55 N
D)80 E,65 S,30 P,20 N
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72
Table 7.6
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.
In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.6.Using the traditional method,in what sequence should products be scheduled for production?
A)N,S,E,P
B)N,E,P,S
C)P,E,N,S
D)E,S,P,N
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.

Use the information in Table 7.6.Using the traditional method,in what sequence should products be scheduled for production?
A)N,S,E,P
B)N,E,P,S
C)P,E,N,S
D)E,S,P,N
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73
Table 7.7
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand is 50 As,60 Bs,70 Cs,and 80 Ds per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.7.Using the bottleneck method,which product should be scheduled first?
A)Product A
B)Product B
C)Product C
D)Product D
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.7.Using the bottleneck method,which product should be scheduled first?
A)Product A
B)Product B
C)Product C
D)Product D
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74
Table 7.5
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand for each product is 80 units per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.5.Using the bottleneck method,what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?
A)less than or equal to $8,100
B)greater than $8,100 but less than or equal to $8,300
C)greater than $8,300 but less than or equal to $8,500
D)greater than $8,500
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.5.Using the bottleneck method,what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?
A)less than or equal to $8,100
B)greater than $8,100 but less than or equal to $8,300
C)greater than $8,300 but less than or equal to $8,500
D)greater than $8,500
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75
Table 7.6
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.
In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.6.Using the traditional method,what is the optimal product mix?
A)120 E,90 S,60 P,55 N
B)60 E,20 S,50 P,33 N
C)80 E,65 S,35 P,5 N
D)80 E,65 S,20 P,35 N
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.

Use the information in Table 7.6.Using the traditional method,what is the optimal product mix?
A)120 E,90 S,60 P,55 N
B)60 E,20 S,50 P,33 N
C)80 E,65 S,35 P,5 N
D)80 E,65 S,20 P,35 N
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76
Table 7.7
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand is 50 As,60 Bs,70 Cs,and 80 Ds per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.7.Using the bottleneck method,what is the optimal product mix?
A)37 A,60 B,70 C,80 D
B)50 A,51 B,70 C,80 D
C)50 A,60 B,62 C,80 D
D)50 A,60 B,70 C,60 D
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.7.Using the bottleneck method,what is the optimal product mix?
A)37 A,60 B,70 C,80 D
B)50 A,51 B,70 C,80 D
C)50 A,60 B,62 C,80 D
D)50 A,60 B,70 C,60 D
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77
Table 7.7
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand is 50 As,60 Bs,70 Cs,and 80 Ds per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.7.Using the traditional method,which product should be scheduled first?
A)Product A
B)Product B
C)Product C
D)Product D
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.7.Using the traditional method,which product should be scheduled first?
A)Product A
B)Product B
C)Product C
D)Product D
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78
Table 7.6
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.
In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.6.Using the bottleneck method,in what sequence should products be scheduled for production?
A)N,S,E,P
B)N,E,P,S
C)P,E,N,S
D)E,S,P,N
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.

Use the information in Table 7.6.Using the bottleneck method,in what sequence should products be scheduled for production?
A)N,S,E,P
B)N,E,P,S
C)P,E,N,S
D)E,S,P,N
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79
Table 7.6
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.
In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.6.Using the bottleneck method,what is the profit if Burdell manufactures the optimal product mix?
A)less than or equal to $10,000
B)greater than $10,000 but less than or equal to $13,000
C)greater than $13,000 but less than or equal to $16,000
D)greater than $16,000
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s.

Use the information in Table 7.6.Using the bottleneck method,what is the profit if Burdell manufactures the optimal product mix?
A)less than or equal to $10,000
B)greater than $10,000 but less than or equal to $13,000
C)greater than $13,000 but less than or equal to $16,000
D)greater than $16,000
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Table 7.7
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.
Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand is 50 As,60 Bs,70 Cs,and 80 Ds per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
Use the information in Table 7.7.Using the traditional method,in what sequence should products be scheduled for production?
A)A,B,C,D
B)A,C,B,D
C)A,D,B,C
D)D,B,C,A
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table.

Use the information in Table 7.7.Using the traditional method,in what sequence should products be scheduled for production?
A)A,B,C,D
B)A,C,B,D
C)A,D,B,C
D)D,B,C,A
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