BUSI 411 Week 4 Exam

The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. How many cords of wood would he have to split with this machine to make a profit of $30,000?

The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. What would the profit be if she were to produce and sell 5,000 rosebushes?

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. Increasing X's effective capacity to ensure that Y's utilization is maximized would be an example of ________ a(n) constraint.

The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. How many cords of wood would he have to split with this machine to break even?

Which of the following is not a determinant of effective capacity?

A company is designing a product layout for a new product. It plans to use this production line eight hours a day in order to meet projected demand of 480 units per day. The tasks necessary to produce this product are:
 

 
If the company wants the output rate to be equal to demand, what would be the efficiency of this line with the theoretical minimum number of workstations? 

Which of the following process types would be most likely to be used in the maturity phase of a product's life cycle?

Heuristic rules are usually applied when:

An example of automated services is:

Which of the following is not true about process layouts when they are compared to product layouts?

The methods analysis chart which describes the portions of a work cycle during which an operator and equipment are busy or idle is a:

From the worker's perspective, an output-based pay system has the advantage of:

A methods and measurements analyst for Digital Devices needs to develop a time standard for the task of assembling a computer mouse. In a preliminary study, she observed one of her workers perform this task six times with the following results:
 

 
How many observations should be made if she wants to be 86.64 percent confident that the maximum error in the observed time is .5 second? Assume that the standard deviation of the task time is four seconds.

When performing a time study, the analyst converts the observed time into the time a worker would require working at an acceptable “average” pace by using which of the following?

A methods and measurements analyst for Timepiece, Inc., needs to develop a time standard for the task of attaching a watch to a wristband. In a preliminary study, he observed one of his workers perform this task five times, with the following results:
 

 
What is the observed time for this task?

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?

Which of the following circumstances would be least likely to lead to a need for a new location?

In regards to supply chain management and the location decision, a primary challenge is to address _______________ distribution.

Which of the following is the last step in the procedure for making location decisions?

In general, managing global operations is made easier by __________ and __________.

Utilization is defined as the ratio of effective capacity to design capacity.

Process layouts feature departments or other functional groupings of personnel or equipment.

The design of work systems is based on objective standards and thereby avoids most ethical issues. 

You cannot make a mistake by locating where labor costs are low.

For service and retail stores, a prime factor in location analysis is customer access.