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BUSI 411 Operations Management Final Exam 2. Questions & Answers (Graded A) $28.49   Add to cart

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BUSI 411 Operations Management Final Exam 2. Questions & Answers (Graded A)

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  • September 12, 2022
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Liberty University BUSI 411 Operations Management Final
Exam 2. Questions & Answers (Graded A)
NB: EVERY ANSWER IS CORRECT

Question 1
Which of the following is a key question in capacity planning?
Answer When do we need the capacity?
:



Question 2

Utilization is defined as the ratio of:
Answer Actual output to design capacity.
:



Question 3

Given the following information, what would utilization be?

Effective capacity = 20 units per day
Design capacity = 60 units per day
Actual output = 15 units per day
Answer: 25%


Question 4

An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of
$70 per unit. The break-even point volume is:
Answer: 500.


Question 5

A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a
prime location near Washington, D.C. They estimate it will cost $50 per prisoner to process the
paperwork at this new location. The county is paid a $75 commission for each new prisoner they
process. How many prisoners would they have to process annually to break even at this new location?
Answer: 2,000

, Question 6

An operations strategy for process selection should recognize that:
Answer: Flexibility is not always the best choice.


Question 7

Computer-aided manufacturing refers to the use of computers in:
Answer: Process control.



Question 8

A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new
facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per
load per meter moved. An analyst has prepared the following distances and flow matrices:

Distances (meters)
From/To I II III
I - 10 20
II - 10
III -

Flows (loads per week)
From/To X Y Z
X - 60 90
Y 40 - 160
Z 110 140 -
What is the distance (in meters) from area III to area I in this new facility?

Answer: 20

Question 9

QRS Corp. is designing a product layout for a new product. They plan to use this production line 10
hours a day in order to meet forecasted demand of 900 units per day. The following table describes the
tasks necessary to produce this product:

Time(secs Immediate
Task ) Predecessor
a 34 none
b 20 a
c 10 b

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