Question 1

The Home-Cooking Gourmet provides four meal packs that can be prepared at home in four minutes.Each meal pack is prepared on a separate production line.The company works five days per week with a single shift for 8 hours.Management wants a 20% capacity cushion.All meals can be prepared on a standard assembly line.Assembly lines are added on the basis of demand.How many production lines are required for the following parameters?

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Question 2

A local company supplies city schools with supply packages.How many assembly lines are needed if the company works 10 hours a day during July to meet demand.They wish to have a 20% capacity cushion.How many assembly lines should they have?

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Question 3

The school supply company can process any of the course packs for shipping in the same amount of time,shown below.Should additional processing or shipping be expanded? That is,what is the bottleneck in this operation?

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Question 4

A small hamburger stand has seating for 12 people.They are considering adding seating for 6 or 12 more people.Profit is currently 28,800 per year.The owner thinks the profit would be 46,080 if 6 additional seats and 63,360 if 12 more seats are added.What is the present value of each option,assuming a 15% discount rate for the next year?

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Question 5

When are yield management techniques appropriate for an organization?

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Question 6

The campus bookstore averages 150 customers per day.The store is open for 12 hours per day.Periodically,the store is not able to use the automated credit card machine and the average checkout time increases to 6 minutes.How many checkout lanes should the bookstore have if the manager wants a 30% capacity cushion?

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Question 7

Identify three quantitative factors for making capacity decisions.

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Question 8

A company runs an assembly line two shifts a day; however,the first shift runs the line 7.5 hours and the second shift runs the line 9 hours.The machine has a maximum output of 120 units per hour.Over the last 28 shifts,the first shift averaged 825 units a shift and the second shift averaged 972 units.Which shift better utilizes the machine?

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Question 9

The campus bookstore averages 150 customers per day.The store is open for 12 hours per day,and each customer takes an average of 4 minutes to check out.How many checkout lanes should the bookstore have if the manager wants a 25% capacity cushion?

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Question 10

What average output should a company have that has a maximum manufacturing capacity of 3000 units per week if they want to outperform other facilities in the company that maintain utilization rates of 88% ?

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Question 11

Compare and contrast a "wait-and-see" capacity strategy with an "aggressive expansion" strategy.

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Question 12

What is the utilization of a packaging machine that can package a maximum of 120 units per hour if the unit has averaged 108 units per hour over the last month?

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Question 13

Identify five issues related to maximizing the utility of existing capacity.

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Question 14

A company has two similar plants,one is small and the other is large.In terms of utilization,which plant is better utilized? The small plant can produce a maximum of 9,000 units a week,and the large plant can produce a maximum of 22,000 units a week.Over the last 16 weeks,the small plant averaged 8,100 units and the large plant averaged 20,200 units per week.

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Question 15

Identify three factors that affect the estimation of capacity,and briefly describe each.

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Quiz 10: Capacity Planning