Question 1

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units,what is the capacity utilization rate?

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Question 2

What is a capacity cushion and why would a firm have one?

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Question 3

If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has one machine capable of producing 4,500 units per week,how many similar machines might you plan to acquire?

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Question 4

Describe the relationship between capacity utilization and quality in a service operation?

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Question 5

A chance node on a decision tree has four possible outcomes worth $10,000,$20,000,$30,000 and minus $100,000 respectively.The probabilities of these outcomes occurring are assessed as 10%,25%,50% and 15% correspondingly.What is the expected value of this chance node?

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Question 6

If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has trained labor and equipment sufficient to produce 150,000 units per month is the capacity cushion positive or negative?

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Question 7

Factors to be taken into account in selecting capacity additions for both manufacturing and services include which four things discussed in this chapter?

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Question 8

A chance node on a decision tree has four possible outcomes each worth $100,000.The probabilities of the outcomes occurring are assessed as 10%,27%,43% and 20%.What is the expected value of this chance node?

Accepted Answer

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Question 9

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units,what is the capacity cushion?

Accepted Answer

The answer of If the best operating level of a...

Question 10

If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has one machine capable of producing 75,000 units per month,how much of product "A" might you plan to acquire through outsourcing?

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Question 11

At a decision point in a decision tree,which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%;the expected benefit of selecting machine B is $80,000 with a probability of 50% and the expected benefit of selecting machine C is $60,000 with a probability of 75%?
A)Machine A
B)Machine B
C)Machine C
D)You would be indifferent between machines A and C
E)You would be indifferent between machines A and B

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Question 12

Why does volatility of demand have a higher effect on a service delivery system than on a manufacturing system?

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Quiz 5: Strategic Capacity Management

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units,what is the capacity utilization rate?

What is a capacity cushion and why would a firm have one?

If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has one machine capable of producing 4,500 units per week,how many similar machines might you plan to acquire?

Describe the relationship between capacity utilization and quality in a service operation?

A chance node on a decision tree has four possible outcomes worth $10,000,$20,000,$30,000 and minus $100,000 respectively.The probabilities of these outcomes occurring are assessed as 10%,25%,50% and 15% correspondingly.What is the expected value of this chance node?

If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has trained labor and equipment sufficient to produce 150,000 units per month is the capacity cushion positive or negative?

Factors to be taken into account in selecting capacity additions for both manufacturing and services include which four things discussed in this chapter?

A chance node on a decision tree has four possible outcomes each worth $100,000.The probabilities of the outcomes occurring are assessed as 10%,27%,43% and 20%.What is the expected value of this chance node?

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units,what is the capacity cushion?

If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has one machine capable of producing 75,000 units per month,how much of product "A" might you plan to acquire through outsourcing?

Why does volatility of demand have a higher effect on a service delivery system than on a manufacturing system?