Name: Class: BA312 Date: Exam 2 ID: A Multiple Choice Identify the choice that b

Question

Name: Class: BA312 Date: Exam 2 ID: A Multiple Choice Identify the choice that best completes the statement or auswers points. Write down your name to obtain 1 free point. the question. There are 33 questions, each ofwhich is 3 Exhibit 1: Company A has one production line in place for bronze sprinklers. Two types of sprinklers are available in both bronze: 90-degree nozzle sprinklers and 180-degree nozzle sprinklers. Management has forecast demand for the next three years as follows Bronze 90 32 15 34 30 Bronze 180 10 Bronze production line can produce all the different types of nozzles. Each broaze machine requires two operators and can produce up to 25,000 sprinklers. There are 2 bronze machines available. Refer to Exhibit 1, what percentage of capacity will be used for year 1? a. 48.5% b. 57.5 C. 94% d.9096 e. None of the above 1. 4. Which of the following is not a step used in determining production capacity requirements? a. Forecasting to predict product sales b. Forecasting raw material usage c. Projecting availability of labor d. Calculating equipment and labor needs e. Projecting equipment availability Which of the following do we need as prerequisite information in a Decision Tree problem used to evaluate capacity alternatives? a. Expect values of payoffs b. Payoff values c. A tree d. All of the above e. None of the above 5. Refer to Exhibit 1, what is the labor requirement for year 3 2. b. 2.6 c. 3.2 d. 4 e. None of the above 3. If the actual output of a piece of equipment during Which of the following is a term used to describe the difference between projected capacity requirements and the actual capacity requirements? a. Capacity cushion b. Capacity planning 6. an hour is 500 units and it's best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate? a. 0.8 b. 1.00 d. e. 1.25 1.33 None of the above c. Capacity requirement d. All of the above e. None of the above

Explanation / Answer

1) Option (c) 94%

Because each machine can produce 25000 sprinkers whereas demand is only 47000. so 47000/50000 = 94%

2) Option (c) 3.2

Because demand is 40000 and each machine requires 2 operators. 40000/50000 = 0.8, so 0.8*4 = 3.2

3) Option (c) 1.25

Because actual is 25% higher than the best operating level.

4) Option (e) because equipment availability need not be projected and calculation is enough which is mentioned in option d.

5) Option (a) Expected value of payoff

6) Option (a) Capacity cushion

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