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Question
Why do variable costs per unit stay constant no matter how many units are produced while fixed costs per unit decline as volume increases?
Answer
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Related questions
Q:
When material is ordered from a vendor, which of the following is not a reason for delays in the order arriving on time?
A. Normal variation in shipping time
B. A shortage of material at the vendor's plant causing backlogs
C. An unexpected strike at the vendor's plant
D. A lost order
E. Redundant ordering systems
Q:
Firms keep supplies of inventory for which of the following reasons?
A. To maintain dependence of operations
B. To provide a feeling of security for the workforce
C. To meet variation in product demand
D. To hedge against wage increases
E. To protect against supplier design changes
Q:
Safety stock is not necessary in any fixed-time period system.
Q:
Which of the following aggregate operations planning methods tests alternative plans through trial and error, results in a non-optimal solution and is simple to develop and use?
A. Linear decision rules
B. Linear programming
C. Graphing and charting
D. Simulation
E. Transportation method
Q:
An advantage of the Level strategy for aggregate operations planning is which of the following?
A. Total costs through the entire system are minimized
B. There is a smooth flow throughout the production system
C. There is variety for the workers through the mixing of models produced
D. The risk of backorders is minimized
E. Customer service is improved
Q:
Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product. If the beginning inventory is 100 units, the demand forecast is 1,200 and the necessary safety stock is 20% of the demand forecast, which of the following is the production requirement?
A. 1,200
B. 1,300
C. 1,340
D. 1,500
E. 1,540
Q:
A "rate fence" is a person who purchases a service at list price and later sells the service at a premium to another person. This practice is often illegal or restricted as in "scalping" of tickets to a sporting event.
Q:
Capacity planning is the step in the aggregate operations planning process that immediately follows development of the master production schedule.
Q:
Yield management is the process of allocating the right type of capacity to the right type of customer at the right prices at the right time to maximize revenue or yield.
Q:
A mathematical technique that is only used in aggregate planning for service operations is the transportation method of linear programming.
Q:
The aggregate operations plan differs in virtually every aspect in service operations as contrasted with manufacturing operations.
Q:
The objective of the aggregate operations plan is to minimize the cost of resources required to meet demand over the intermediate term of 3 to 18 months.
Q:
Name the four basic types of forecasting?
Q:
It is difficult to separate the operations management functions from marketing in services.
Q:
Because little or no inventory is carried in a service operation, it is easy to separate the operations management functions from marketing in services.
Q:
11 When recovering from a defective service encounter a poor treatment from a server calls for material compensation.
Q:
When recovering from a defective service encounter a botched task calls for an apology.
Q:
Describe the implications of the product-process matrix for process design in a competitive situation?
Q:
Assume a fixed cost for a process of $100,000. The variable cost to produce each unit of product is $10 and the selling price for the finished product is $50. Ignoring inventory, how many units must the firm sell to break-even?
Q:
Why might a partial productivity measure be preferred to the more comprehensive total factor measure of productivity?
Q:
Explain the role that "order qualifiers" and "order winners" play as the interface between marketing and operations?
Q:
A diagram showing how a company's strategy is delivered through a set of tailored activities is called what?
Q:
Strategy typically breaks down into what three major components?
Q:
Various financial data for SunPath Manufacturing for 2008 & 2009 follow. What is the percentage change in the labor partial productivity measure for SunPath between 2008 & 2009?
A. 9.22
B. 2.33
C. 0.53
D. 2.88
E. 10.39
Q:
Various financial data for SunPath Manufacturing for 2008 & 2009 follow. What is the percentage change in the energy partial productivity measure for SunPath between 2008 & 2009?
A. 9.22
B. 2.33
C. 0.53
D. 2.88
E. 10.39
Q:
Which of the following is a partial measure of productivity?
A. Output/Materials
B. Output/(Labor + Capital + Energy)
C. Output/All resources used
D. Output/Inputs
E. All of the above
Q:
The operations and supply strategy framework presented in the textbook includes which of the following enterprise capabilities?
A. Quality
B. Dependability
C. Flexibility
D. Price
E. People
Q:
What is sometimes humorously referred to as a "gozinto chart"?
A. Assembly drawing
B. Assembly chart
C. Process flowchart
D. Operation and route sheet
E. Organization charts
Q:
Which of the following is not considered a major process flow structure?
A. Project
B. Workcenter
C. Assembly line
D. Fabrication
E. Continuous Flow
Q:
In analysis using a process flowchart of a manufacturing operation, the emphasis is usually on identification of activities that can be minimized or eliminated.