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Question
The operations manager for the Blue Moon Brewing Co. produces two beers: Lite (L) and Dark (D). Two of his resources are constrained: production time, which is limited to 8 hours (480 minutes) per day; and malt extract (one of his ingredients), of which he can get only 675 gallons each day. To produce a keg of Lite beer requires 2 minutes of time and 5 gallons of malt extract, while each keg of Dark beer needs 4 minutes of time and 3 gallons of malt extract. Profits for Lite beer are $3.00 per keg, and profits for Dark beer are $2.00 per keg.
For the production combination of 135 Lite and 0 Dark, which resource is slack (not fully used)?
A. time (only)
B. malt extract (only)
C. both time and malt extract
D. neither time nor malt extract
E. cannot be determined exactly
Answer
This answer is hidden. It contains 72 characters.
Related questions
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A small business owner is contemplating the addition of another product line. Capacity increases and equipment will result in an increase in annual fixed costs of $50,000. Variable costs will be $25 per unit. (A) What unit selling price must the owner obtain to break even on a volume of 2,500 units a year?
(B) Because of market conditions, the owner feels a revenue of $47 is preferred to the value determined in part A. What volume of output will be required to achieve a profit of $16,000 using this revenue?
Q:
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.
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Q:
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Q:
Which of the following makes using present value approaches in capacity decisions difficult?
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B. Some cash flows are positive and other cash flows are negative.
C. The payback period might not be long enough to justify a capacity decision.
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Operation X feeds into operation Y. Operation X has an effective capacity of 55 units per hour. Operation Y has an effective capacity of 50 units per hour. Finding a way to increase Y's effective capacity would be an example of ________ a constraint.
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Q:
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Q:
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Q:
The method of financial analysis which focuses on the length of time it takes to recover the initial cost of an investment is:
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Q:
If the output rate is increased but the average unit costs also increase, we are experiencing:
A. market share erosion.
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Q:
What is the break-even quantity for the following situation? FC = $1,200 per week
VC = $2 per unit
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A. 100
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Q:
Short-term considerations in determining capacity requirements include:
A. demand trend.
B. cyclical demand variations.
C. seasonal demand variations.
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E. new product development plans.
Q:
Capacity in excess of expected demand that is intended to offset uncertainty is a:
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B. line balance.
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B. backordering
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Q:
Given the following information, what would utilization be? Effective capacity = 20 units per day
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A. 1/4
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Q:
The ratio of actual output to design capacity is:
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B. demand.
C. supplies.
D. rate of output.
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Q:
In cost-volume analysis, costs that vary directly with volume of output are referred to as fixed costs because they are a fixed percentage of output levels.
Q:
Cost and competitive priorities reduce effective capacities.
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An example of an external factor that influences effective capacity is government safety regulations.
Q:
Utilization is defined as the ratio of effective capacity to design capacity.
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Increasing productivity and also quality will result in increased capacity.
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One of these is not a characteristic of a well-designed service system:
A. user friendly
B. robust
C. distributed computer networks
D. cost effective
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Q:
The term "standardization" is closely associated with:
A. customization.
B. high cost.
C. longer lead times.
D. variety.
E. interchangeability.
Q:
The term "degrees of newness" is associated with:
A. average age of employees.
B. average length of time on the job.
C. total years of business experience.
D. degree of design change.
E. average age of the capital equipment.
Q:
Which of the following statements about CAD is not true?
A. It increases the productivity of designers.
B. It uses computer graphics.
C. It requires a good database.
D. Some systems permit engineering or cost analysis of proposed designs.
E. It is used successfully by all manufacturing companies.
Q:
The research and development activity which starts after positive research results are available and attempts to turn these results into useful commercial applications is:
A. basic research.
B. applied research.
C. development.
D. redesign.
E. commercial research.
Q:
Which of the following is not a reason for redesigning a product or service?
A. to reduce labor or material cost
B. to increase the level of employee satisfaction
C. to increase the level of customer satisfaction
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Q:
Delayed differentiation and modular design are tactics for mass customization.
Q:
Standardization can at times lead to serious difficulties and competitive struggles, particularly when systems are running under different conditions.