Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Business Development
Q:
Discuss principles of lean production, specifically the ways that the Toyota Production System uses to eliminate waste.
Q:
Suppose that the market has a 70% chance of being favorable and a 30% chance of being unfavorable. A favorable market will yield a profit of $300,000, while an unfavorable market will yield a profit of $20,000. What is the expected monetary value (EMV) in this situation?
Q:
A firm is about to undertake the manufacture of a product, and it is weighing three capacity alternatives: small job shop, large job shop, and repetitive manufacturing. The small job shop has fixed costs of $3,000 per month, and variable costs of $10 per unit. The larger job shop has fixed costs of $12,000 per month and variable costs of $3 per unit. The repetitive manufacturing plant has fixed costs of $30,000 and variable costs of $1 per unit. Demand for the product is expected to be 1,000 units per month with "moderate" market acceptance, but 2,000 under "strong" market acceptance. The probability of moderate acceptance is estimated to be 60 percent; strong acceptance has a probability of 40 percent. The product will sell for $25 per unit regardless of the capacity decision. Which capacity choice should the firm make?
Q:
After describing the ABC Inventory Classification System, give examples of each category for a food item common to a restaurant.
Q:
A firm is weighing three capacity alternatives: small, medium, and large job shop. Whatever capacity choice is made, the market for the firm's product can be "moderate" or "strong." The probability of moderate acceptance is estimated to be 40 percent; strong acceptance has a probability of 60 percent. The payoffs are as follows. Small job shop, moderate market = $24,000; Small job shop, strong market = $54,000. Medium job shop, moderate market = $20,000; medium job shop, strong market = $64,000. Large job shop, moderate market = -$2,000; large job shop, strong market = $96,000. Which capacity choice should the firm make?
Q:
After describing common inventory record-keeping systems, what are guidelines for their use?
Q:
Discuss the objectives of inventory management.
Q:
Describe how EMV might be used to analyze a capacity decision.
Q:
Discuss quality tools and techniques that can be used to improve quality. Specifically describe the difference between inspection vs. poka-yoke as a quality assurance method. How do these methods relate to Ishikawas The Basic Seven and statistical methods of quality control?
Q:
A retailer is considering building a large store. If the local economy experiences expansion, the firm expects the store to earn a $2,000,000 profit next year. If the local economy experiences a contraction, the firm expects the store to lose $400,000 next year. Analysts estimate a 20% chance for the local economy to experience an expansion next year (hence an 80% chance for contraction). What is the expected monetary value (EMV) of building the large store?
A) $1,600,000
B) $720,000
C) $2,000,000
D) $80,000
E) $1,520,000
Q:
Possible decision alternatives found in capacity EMV problems are future demands or market favorability.
Q:
After defining operations management, discuss operational factors that will impact a firms performance.
Q:
The capacity planning strategy that delays adding capacity until capacity is below demand, then adds a capacity increment so that capacity is above demand, is said to ________ demand.
Q:
Tonya owns TTs T-shirts, a sports clothing production company that produces embroidered shirts that are monogrammed. She has identified a constraint with her monogramming machine in that the work flow slows considerably due to the shirts not being fed into the machine properly and the machine taking a certain amount of time. How could this problem be addressed?
Q:
Christie and Kevin are starting a produce farm raising organic vegetables. Kevin plans to sell the produce wholesale to a local restaurant and Christie is going to start a cooking school spotlighting the produce. Complete the following table detailing the inputs and outputs between the product business versus the service business. What are the similarities?
Product:
Wholesale Restaurant Sales Operation Services:
Organic Food Cooking School
Input
Processes
Output
Q:
What is a common method used to increase capacity with a lag strategy?
A) overtime
B) subcontracting
C) new facilities
D) new machinery
E) A and B
Q:
How can supplier performance be measured when selecting a new supplier? Discuss the SCOR model followed by other suggestions for good relations.
Q:
Lag and straddle strategies for increasing capacity have what main advantage over a leading strategy?
A) They are cheaper.
B) They are more accurate.
C) They delay capital expenditure.
D) They increase demand.
E) All of the above are advantages.
Q:
Holly is a business consultant who assists new companies in writing business plans. What type of manufacturing operation would Hollys business be considered and what are important characteristics for operational success?
Q:
Which of the following is FALSE regarding capacity expansion?
A) "Average" capacity sometimes leads demand, sometimes lags it.
B) If "lagging" capacity is chosen, excess demand can be met with overtime or subcontracting.
C) Total cost comparisons are a rather direct method of comparing capacity alternatives.
D) Capacity may only be added in large chunks.
E) In manufacturing, excess capacity can be used to do more setups, shorten production runs, and drive down inventory costs.
Q:
Of the four approaches to capacity expansion, the approach that "straddles" demand:
A) uses incremental expansion.
B) uses one-step expansion.
C) at some times leads demand, and at other times lags.
D) works best when demand is not growing but is stable.
E) Choices A and C are both correct.
Q:
Wallies Western Wear is a retailer of western style clothing that produces all of its own products. Wallie and Wanda, the owners, want to incorporate a system to solve quality problems and understand they need to start with their customers. What suggestions would be helpful for this process?
Q:
Changes in capacity may lead, lag, or straddle the demand.
Q:
Edith is the operations manager at a small company that imports English leather-goods for resale. In a recent meeting with the CEO, the decision was made that the small company would concentrate purchases with one supplier. What are reasons that this decision could have been made?
Q:
A firm produces three products. Product A sells for $60; its variable costs are $20. Product B sells for $200; its variable costs are $120. Product C sells for $25; its variable costs are $10. Last year, the firm sold 1000 units of A, 2000 units of B, and 10,000 units of C. The firm has fixed costs of $320,000 per year. Calculate the break-even point of the firm.
Q:
A list of critical factors that provides a helpful starting place when assessing a suppliers performance
Q:
The processes used to create and deliver a product or service
Q:
A firm produces three products in a repetitive process facility. Product A sells for $60; its variable costs are $20. Product B sells for $200; its variable costs are $80. Product C sells for $25; its variable costs are $15. The firm has annual fixed costs of $320,000. Last year, the firm sold 1000 units of A, 2000 units of B, and 10,000 units of C. Calculate the break-even point of the firm. The firm has some idle capacity at these volumes, and chooses to cut the selling price of A from $60 to $45, believing that its sales volume will rise from 1000 units to 2500 units. What is the revised break-even point?
Q:
A choice that companies must make when they have the option of making or buying component parts for products they produce
Q:
A local business owner is considering adding another employee to his staff in an effort to increase the number of hours that the store is open per day. If the employee will cost the owner $4,000 per month and the store takes in $50/hour in revenue with variable costs of $15/hour, how many hours must the new employee work for the owner to break even?
Q:
Contracting with a third party to take on and manage one or more of a firms functions
Q:
A firm is considering adding a second secretary to answer phone calls and make appointments. The cost of the secretary will be $10/hour and she will work 200 hours each month. If each new client adds $400 of profit to the firm, how many clients must the secretary arrange for the firm to break even?
Q:
Manufacturing operations designed for long production runs of high-volume, standardized products
Q:
A graphic design studio is considering three new computers. The first model, A, costs $5000. Model B and C cost $3000 and $1000 respectively. If each customer provides $50 of revenue and variable costs are $20/customer, find the number of customers required for each model to break even.
Q:
A firm sells two products. Product R sells for $20; its variable cost is $6. Product S sells for $50; its variable cost is $30. Product R accounts for 60 percent of the firm's sales, while S accounts for 40 percent. The firm's fixed costs are $4 million annually. Calculate the firm's break-even point in dollars.
Q:
Manufacturing operations designed for short production runs of small quantities of items
Q:
A product is currently made in a process-focused shop, where fixed costs are $8,000 per year and variable cost is $40 per unit. The firm currently sells 200 units of the product at $200 per unit. A manager is considering a repetitive focus to lower costs (and lower prices, thus raising demand). The costs of this proposed shop are fixed costs = $24,000 per year and variable costs = $10 per unit. If a price of $80 will allow 400 units to be sold, what profit (or loss) can this proposed new process expect? Do you anticipate that the manager will want to change the process? Explain.
Q:
Manufacturing operations used to create unique but similar products
Q:
A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm sells the product for $200 per unit. What is the break-even point for this operation? What is the profit (or loss) on a demand of 200 units per year?
Q:
Manufacturing operatoins that usually involve computer-controlled equipment that can turn out products in smaller or more flexible quantities
Q:
How is break-even analysis useful in the study of the capacity decision? What limitations does this analytical tool have in this application?
Q:
An approach that emphasizes efficiency through elimination of waste
Q:
Define variable costs. What special assumption is made about variable costs in the textbook?
Q:
A form of manufacturing with output that more closely resembles a product stream than individual products
Q:
Define fixed costs.
Q:
An approach that recognizes the interdependence of assets and activities and manages them to optimize the entire firms performance
Q:
An organization in which small businesses combine their demand for products or services in order to negotiate as a group with suppliers
Match the term with its definition. Some terms may not be used.
a. Continuous manufacturing
b. Flexible manufacturing systems
c. Job shops
d. Lean production
e. Make-or-buy decisions
f. Operations
g. Outsourcing
h. Poka-yoke
i. Project manufacturing
j. Repetitive manufacturing
k. Supply Chain Operations Reference model
l. Synchronous manufacturing
Q:
Multiproduct break-even analysis calculates the ________ of each product, ________ it in proportion to each product's share of total sales.
Q:
A method for keeping a running record of inventory
Q:
________ cost is the cost that continues even if no units are produced.
Q:
Forecasting that considers a variety of variables to determine expected sales
Q:
________ analysis finds the point at which costs equal revenues.
Q:
A method that provides for periodic counting of items in inventory
Q:
A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm's total of $60,000. When performing multiproduct break-even analysis, what is the weighted contribution of this product?
A) 0.133
B) 0.200
C) 0.40
D) 0.667
E) $1.667
Q:
A method of inventory conrol based on the use of two containers for each item in inventory, one to meet current demand and the other to meet future demand
Q:
The basic break-even model can be modified to handle more than one product. This extension of the basic model requires:
A) price and sales volume for each product.
B) price and variable cost for each product, and the percent of sales that each product represents.
C) that the firm have very low fixed costs.
D) that the ratio of variable cost to price be the same for all products.
E) sales volume for each product.
Q:
A method for counting different segments of the physical inventory at different times during the year
Q:
Break-even analysis can be used by a firm that produces more than one product, but:
A) the results are estimates, not exact values.
B) the firm must allocate some fixed cost to each of the products.
C) each product has its own break-even point.
D) the break-even point depends upon the proportion of sales generated by each of the products.
E) None of these statements is true.
Q:
An index that determines the quantity to purchase in order to minimize total inventory costs
Q:
Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per unit. What is the break-even point for machine A?
A) $90,000 dollars
B) 90,000 units
C) $15,000 dollars
D) 15,000 units
E) 4,286 units
Q:
A method of controlling inventory that uses a targeted service level, allowing statistical determination of the appropriate amount of inventory to carry
Q:
Basic break-even analysis typically assumes that:
A) revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases.
B) variable costs and revenues increase in direct proportion to the volume of production.
C) both costs and revenues are made up of fixed and variable portions.
D) costs increase in direct proportion to the volume of production, while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts.
E) All of the above are assumptions in the basic break-even model.
Q:
A method of reducing inventory carrying costs by making or buying what is needed just as it is needed
Q:
Which of the following costs would be incurred even if no units were produced?
A) raw material costs
B) direct labor costs
C) transportation costs
D) building rental costs
E) purchasing costs
Q:
A system of classifying items in inventory by relative value
Q:
Which of the following statements regarding fixed costs is TRUE?
A) Fixed costs rise by a constant amount for every added unit of volume.
B) While fixed costs are ordinarily constant with respect to volume, they can "step" upward if volume increases result in additional fixed costs.
C) Fixed costs are those costs associated with direct labor and materials.
D) Fixed costs equal variable costs at the break-even point.
E) Fixed cost is the difference between selling price and variable cost.
Q:
Break-even is the number of units at which:
A) total revenue equals price times quantity.
B) total revenue equals total variable cost.
C) total revenue equals total fixed cost.
D) total profit equals total cost.
E) total revenue equals total cost.
Q:
Operational strategies used to stimulate customer demand when it is normally low
Q:
Break-even analysis is a powerful analytical tool, but is useful only when the organization produces a single product.
Q:
An all-encompassing management approach to providing high-quality products or services
Match the term with its definition. Some terms may not be used.
a. ABC method
b. Associative forecasting
c. Cooperative purchasing organization
d. Cycle counting
e. Demand management strategies
f. Economic order quantity
g. Just-in-time inventory system
h. Perpetual inventory system
i. Physical inventory system
j. Poka-yoke
k. Statistical inventory control
l. Two-bin inventory system
Q:
Break-even analysis identifies the volume at which fixed costs and revenue are equal.
Q:
The use of a random, representative portion of products to determine the acceptability of an entire lot
Q:
Fixed costs are those costs that continue even if no units are produced.
Q:
Measured parameters that fall on a continuum, such as weight or length
Q:
Explain the importance of a bottleneck operation in a production sequence.
Q:
Product or service parameters that can be counted as being present or absent
Q:
Identify, in proper sequence, the steps in the process of recognizing and managing constraints.
Q:
The standards governing international certification of a firms quality management procedures
Q:
The most restrictive limit on capacity, determining the capacity of the entire system
Q:
Describe the theory of constraints in a sentence.