BUSI 411 Exam 2 Liberty University

  1. Allowances for which of these factors would be subtracted from design capacity when calculating effective capacity?
  2. Given the following information, what would utilization be?

    Effective capacity = 20 units per day
    Design capacity = 60 units per day
    Actual output = 15 units per day

  3. Maximum capacity commonly refers to the upper limit on:
  4. Which of the following makes using present value approaches in capacity decisions difficult?
  5. Efficiency is defined as the ratio of:
  6. An example of automated services is:
  7. An advantage of a U-shaped production line is that:
  8. The type of layout in which workers, materials, and equipment are moved to the product as needed is:
  9. A common goal in designing process layouts is:
  10. A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load meter moved. An analyst has prepared the following flow and distance matrices:
  11. Which of the following is not an advantage of work sampling compared to stopwatch time study?
  12. A behavioral approach to job design in which workers periodically exchange jobs is known as:
  13. How many observations should be made if the analyst wants to be 99.74 percent confident that the maximum error in the observed time is two seconds? Assume that the standard deviation of the task time is four seconds.
  14. What is the normal time for this task if the employee worked at a 25 percent faster pace than average?
  15. 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.
  16. A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network.
  17. A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below:
  18. 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?
  19. The method for evaluating location alternatives that uses their total-cost lines is:
  20. In regards to supply chain management and the location decision, a primary challenge is to address _______________ distribution.
  21. 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.
  22. “Balance delay” is another name for the percentage of idle time in a process layout.
  23. It would be acceptable to use a group incentive plan for an assembly line operation.
  24. A strategy that emphasizes convenience for the customers would probably select a single very large facility.
  25. The first step in developing location alternatives is identifying important factors.