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Question
A capacity alternative has an initial cost of $50,000 and cash flow of $20,000 for each of the next four years. If the cost of capital is 5 percent, the net present value of this investment is:
A) greater than $80,000 but less than $130,000.
B) greater than $130,000.
C) less than $30,000.
D) impossible to calculate, because no interest rate is given.
E) impossible to calculate, because variable costs are not known.
Answer
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Related questions
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A company is deciding if it should design an advertising system for use on Twitter. The first option is to skip out on designing, with no net costs or gains. The second option is System A, which would result in additional sales of either $50,000 under good conditions or $10,000 under bad conditions. The final choice is System B, which would increase sales by $20,000 under both good and bad conditions. Suppose that good conditions are twice as likely as bad conditions. Which option should the company pursue if developing a system costs $25,000?
Q:
The tracking signal is the:
A) standard error of the estimate.
B) absolute deviation of the last period's forecast.
C) MAD.
D) ratio of cumulative error / MAD.
E) MAPE.
Q:
Porter's Five Forces Model contains which of the following?
A) immediate rivals
B) potential entrants
C) customers
D) suppliers
E) all of the above
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Provide an example of an organization that achieves competitive advantage through experience differentiation. Explain.
Q:
Service organizations can immerse the consumer in the service, or have the consumer become a participant in the service, as they practice ________.
Q:
Production processes are being dispersed to take advantage of national differences in labor costs.
Q:
Consumer's risk is the probability of:
A) accepting a good lot.
B) rejecting a good lot.
C) rejecting a bad lot.
D) accepting a bad lot.
E) none of the above
Q:
The probability of rejecting a good lot is known as consumer's risk.
Q:
Because most services cannot be inventoried, there is little place for JIT to help service organizations achieve competitive advantage.
Q:
Lean operations are known for their:
A) employee development.
B) supplier education.
C) supplier partnerships.
D) challenging jobs.
E) All of the above are attributes of lean operations.
Q:
Wheeled Coach uses ________ as the catalyst for low inventory, high quality, tight schedules, and accurate records.
Q:
Demand for a given item is said to be dependent if:
A) it originates from the external customer.
B) there is a deep bill of material.
C) the finished products are mostly services (rather than goods).
D) there is a clearly identifiable parent.
E) the item has several children.
Q:
Industries in which revenue management techniques are easiest to apply are those where:
A) use tends to be predictable, and pricing tends to be fixed.
B) use tends to be predictable, and pricing tends to be variable.
C) use tends to be uncertain, and pricing tends to be fixed.
D) use tends to be uncertain, and pricing tends to be variable.
E) All of the above, i.e., there is no difference.
Q:
Designing distribution networks to meet customer expectations suggests three criteria: (1) rapid response, (2) cost, and (3) service.
Q:
Cross-sourcing describes the practice of having two suppliers provide every component.
Q:
Use of a diversified supply base represents one of the most common supply chain risk reduction tactics for several different supply chain risk categories.
Q:
________ rely on a variety of supplier relationships to provide services on demand.
Q:
Which of the following is not a limitation of job expansion?
A) higher capital cost
B) higher wage rates
C) smaller labor pool
D) higher training costs
E) All of the above are limitations of job expansion.
Q:
When a worker obtains clear and timely information about his/her performance, his/her job includes which of the following characteristics?
A) feedback
B) skill variety
C) job identity
D) job significance
E) autonomy
Q:
Which of Hackman and Oldham's five job characteristics refers to providing a worker a say in the work methods that he/she wishes to utilize?
A) skill variety
B) job identity
C) job significance
D) feedback
E) autonomy
Q:
Profit-sharing is a motivation and incentive system where executives receive stock options.
Q:
The primary purpose of the mean absolute deviation (MAD) in forecasting is to:
A) estimate the trend line.
B) eliminate forecast errors.
C) measure forecast accuracy.
D) seasonally adjust the forecast.
E) remove random variations.
Q:
Which of the following is NOT a key benefit of MRP?
A) increased quality
B) better response to customer orders
C) faster response to market changes
D) improved utilization of facilities and labor
E) reduced inventory levels
Q:
Demand for a given item is said to be dependent if:
A) it originates from the external customer.
B) there is a deep bill of material.
C) the finished products are mostly services (rather than goods).
D) there is a clearly identifiable parent.
E) the item has several children.
Q:
The aggregate planning process usually includes dispatching of individual jobs.
Q:
What is the primary management challenge when implementing revenue management?
Q:
Weight Day
Package 1
Package 2
Package 3
Package 4 Monday
23
22
23
24 Tuesday
23
21
19
21 Wednesday
20
19
20
21 Thursday
18
19
20
19 Friday
18
20
22
20 (a) If he sets an upper control limit of 21 and a lower control limit of 19 around the target value of twenty ounces, the control chart is based on what value of z?
(b) With the UCL and LCL of part a, what do you conclude about this processis it in control?
Answer:
Q:
What is the difference between natural and assignable causes of variation?
Q:
What are the three possible results (or findings) from the use of control charts?
Q:
An assembly line has 10 stations with times of 1, 2, 3, 4, , 10, respectively. What is the bottleneck time?
A) 18.18% of the throughput time
B) 100% of the throughput time
C) 550% of the throughput time
D) 50% of the throughput time
E) 1.82% of the throughput time