Exam 2 Operations Management

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Exam 2
1.
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The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of labor-intensive resources.

| False|
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Best operating level is the volume of output at which average unit cost is minimized.

| True|

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Overtime and personnel transfers are solutions to capacity problems in the intermediate term.

| False|
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Capacity flexibility means having the ability to rapidly increase or decrease production levels, or to shift production capacity quickly from one product or service to another.

| True|

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A production facility works best when it focuses on a fairly limited set of production objectives.

| True|

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Low rates of capacity utilization in service organizations are never appropriate.

| False|
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If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate?

| 1.25 |

11.
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Compared with a service operation, a manufacturing operation's capacity is which of the following?

| Demand can be smoothed by inventory policies |

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Top of Form
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The capacity focus concept can be put into practice through a mechanism called which of the following?

| Plants within plants (PWP) |

0 out of
30 points  Regarding Capacity Expansion Decision which of the following is/are TRUE?   I. The decision includes timing of capacity increments. II. A reactive expansion strategy is risky.   | II only | →| I only |

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Top of Form16.award:
0 out of
30 points    Service systems must be easily accessible to its target customers. This implies   → | All of these |

17.award:
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40 points  Always Rain Inc. makes three models of sprinklers each in plastic (P1, P2, P3) and bronze (B1, B2, B3). The demand for next year (in thousands of units) is forecast to be  44, 16, and 55 for P1, P2, P3  and  8, 4, and 12 for B1, B2, B3  respectively.  The plastic injection molding machine requires four operators and can produce a total of 200,000 plastic sprinklers of all types per year. The bronze machine requires two operators and can produce a total of 12,000 bronze sprinklers of all types per year. The machine and labor requirements to meet the demand for plastic sprinklers are respectively   | 2.83 and 5.66 |

| 0.575 and 2.30     |

19.award:
10 out of
10 points  One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous. | True| | False|
20.award:
10 out of
10 points  The choice of which process structure to select is generally a function of the volume requirements for the product. | True| | False|
21.award:
10 out of
10 points  If the sum of the task times required to produce a product is 45 minutes and the cycle time for the same product is 10 minutes. Thus, the theoretical minimum number of workstations is 5 using the assembly-line balancing procedure.

| True|

22.award:
10 out of
10 points  The first step in balancing an assembly line is to specify the precedence relationships among tasks to be performed on the line. | True| | False|

23.award:
0 out of
10 points  In balancing an assembly line workstation cycle time has to be less than the time between successive units coming off the end of the line. | False|
25.award:
10 out of
10 points  Assembly...
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