FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 5: Strategic Capacity Planning for Products and Services

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Short Answer

Review LaterAdd Note

Review Later

Consider the following information: $\begin{array} { l l } \text { Fixed Costs: } & \$ 15,000 \text { per year } \\\text { Variable Costs: } & \$ 1.00 \text { per unit } \\\text { Revenue: } & \$ 1.60 \text { per unit } \\\text { Design Capacity: } & 45,000 \text { units per year } \\\text { Effective Capacity: } & 40,000 \text { units per year } \\\text { Anticipated Output: } & 36,000 \text { units per year }\end{array}$ What is the anticipated efficiency?

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

The impact that a significant change in capacity will have on a key vendor is a:

A) supply chain factor.
B) process limiting factor.
C) internal factor.
D) human resource factor.
E) operational process factor.

Correct Answer

verified

Show Answer

Question 33

True/False

Review LaterAdd Note

Outsourcing some production is a means of supporting a constraint.

A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual fixed cost of $100,000 and variable costs of $22 per unit. Alternative B would have annual fixed costs of $120,000 and variable costs of $20 per unit. Alternative C would have fixed costs of $80,000 and variable costs of $30 per unit. Revenue is expected to be $50 per unit. (A) Which alternative has the lowest break-even quantity? (B) Which alternative will produce the highest profits for an annual output of 10,000 units? (C) Which alternative would require the lowest volume of output to generate an annual profit of $50,000?

The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. If her available land has design and effective capacities of 3,000 and 2,000 rosebushes per year, respectively, and she expects to be 80 percent efficient in her use of this land, how many rosebushes does Rose plan to grow each year on this land?

Doctor J. is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000. He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00. What would be his profit if he were to perform 5,000 HIV blood analyses?

Students at a major university must go through several registration steps. Officials have observed that it is typically the case that the waiting line at the fee-payment station is the longest. This would seem to suggest that the fee-payment station is the ___________ in the student registration process.

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:

The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. What would the profit be if she were to produce and sell 5,000 rosebushes?

Given the following data for a make-or-buy decision: $\begin{array} { l l l } \text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \\\hline \text { Buy } & \$ 0 \text { per year } & \$ 8 \text { per unit } \\\text { Make } & \$ 100,000 \text { per year } & \$ 4 \text { per unit }\end{array}$ Which alternative would you select for a quantity of 24,000 units per year?

The ratio of actual output to design capacity is:

A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a prime location near Washington,

The ratio of actual output to effective capacity is:

Consider the following information: $\begin{array} { l l } \text { Fixed Costs: } & \$ 15,000 \text { per year } \\\text { Variable Costs: } & \$ 1.00 \text { per unit } \\\text { Revenue: } & \$ 1.60 \text { per unit } \\\text { Design Capacity: } & 45,000 \text { units per year } \\\text { Effective Capacity: } & 40,000 \text { units per year } \\\text { Anticipated Output: } & 36,000 \text { units per year }\end{array}$ What profit (loss) would there be for a quantity of 27,000?

Consider the following information: $\begin{array} { l l } \text { Fixed Costs: } & \$ 15,000 \text { per year } \\\text { Variable Costs: } & \$ 1.00 \text { per unit } \\\text { Revenue: } & \$ 1.60 \text { per unit } \\\text { Design Capacity: } & 45,000 \text { units per year } \\\text { Effective Capacity: } & 40,000 \text { units per year } \\\text { Anticipated Output: } & 36,000 \text { units per year }\end{array}$ What is the anticipated utilization?

A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a prime location near Washington,

Utilization is defined as the ratio of:

Which of the following is not a determinant of effective capacity?

Given the following data for a make-or-buy decision: $\begin{array} { l l l } \text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \\\hline \text { Buy } & \$ 0 \text { per year } & \$ 8 \text { per unit } \\\text { Make } & \$ 100,000 \text { per year } & \$ 4 \text { per unit }\end{array}$ What would be your total costs for the preferred alternative, for 32,000 units per year?

Improving cash flow would be a reasonable thing to focus on when trying to overcome a _________ constraint.