Operations Management 2nd Ed By Gerard Cachon - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below Operations Management, 2e (Cachon) Chapter 5 Process Analysis with Multiple Flows 1) All flow units will have the same exit point in a production process. Answer: …
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Operations Management 2nd Ed By Gerard Cachon – Test Bank
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Sample Questions Are Posted Below
Operations Management, 2e (Cachon)
Chapter 5 Process Analysis with Multiple Flows
1) All flow units will have the same exit point in a production process.
Answer: FALSE
Explanation: Attrition loss is an example of when flow units exit the process before completion. Therefore, some flow units exit the process earlier than others.
Difficulty: 1 Easy
Topic: Generalized Process Flow Patterns
Learning Objective: 05-01 Compute the demand for a resource in a process serving/producing a mix of customers/products.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
2) A bottleneck resource must have an implied utilization less than 100%.
Answer: FALSE
Explanation: An implied utilization less than 100% simply means that the resource has capacity to meet demand. It has no bearing on whether or not the resource is a bottleneck.
Difficulty: 2 Medium
Topic: How to Find the Bottleneck in a Process with Multiple Flows
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
3) The overall process yield is the sum total of the yields of all resources.
Answer: FALSE
Explanation: The overall process yield is the product of the yields of all resources.
Difficulty: 1 Easy
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
4) When analyzing a process flow with flow-dependent processing times, the unit of analysis should be a unit of demand.
Answer: FALSE
Explanation: When analyzing a process flow with flow-dependent processing times, the unit of analysis for a flow unit becomes a time unit, such as number of minutes or hours of work.
Difficulty: 2 Medium
Topic: Flow Unit–Dependent Processing Times
Learning Objective: 05-03 Analyze a process with flow-dependent processing times.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
5) Rework always lowers the process capacity.
Answer: FALSE
Explanation: Rework lowers the process capacity only when it involves a bottleneck resource in restoring reworked units.
Difficulty: 3 Hard
Topic: Rework
Learning Objective: 05-05 Analyze a process with rework.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
6) The demand rate for a resource that does rework is higher than for a resource with no rework.
Answer: TRUE
Explanation: Reworked units revisit a resource and therefore consume more time at that resource than good units.
Difficulty: 1 Easy
Topic: Rework
Learning Objective: 05-05 Analyze a process with rework.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
7) Customers at an e-retailer site abandon their shopping carts without completing their purchase. This is an example of ________.
Answer: A
Explanation: Attrition loss refers to flow units leaving the process without completion.
Difficulty: 1 Easy
Topic: Generalized Process Flow Patterns
Learning Objective: 05-01 Compute the demand for a resource in a process serving/producing a mix of customers/products.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
8) A store manager at C&A notices that 40% of customers come to browse but not buy, 45% do not require any assistance before making a purchase, and 15% of customers need assistance during their visit. This is a ________ situation where customers take different paths through the shopping process.
Answer: C
Explanation: A product mix refers to a combination of different flow unit types moving through a process.
Difficulty: 1 Easy
Topic: Generalized Process Flow Patterns
Learning Objective: 05-01 Compute the demand for a resource in a process serving/producing a mix of customers/products.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
9) A store manager at C&A notices that about 35% of customers who walk into the store will make a purchase without assistance, about 40% come to browse but not buy, 10% need assistance from an assistant manager and make a purchase, and 5% need assistance from the store manager and do not buy. C&A has one greeter, two assistant managers, one store manager, and six cashiers. In setting up a demand table, how many rows of resource type and columns of customer type does C&A need?
Answer: C
Explanation: There are four types of resources and four types of customers.
Difficulty: 1 Easy
Topic: Generalized Process Flow Patterns
Learning Objective: 05-01 Compute the demand for a resource in a process serving/producing a mix of customers/products.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
10) Not all of the 100 customers who walk into the C&A store per day will make a purchase. About 20% come to browse but not buy, 10% need assistance to complete a purchase, and 5% need assistance but leave without making a purchase. The other 65% purchase something without requiring assistance. C&A has one greeter (who greets every customer), two assistants (who deal with customers who need assistance), and two cashiers (who serve customers who purchase something). What does the demand table for C&A look like?
A)
| Browse | Buy | |
| Greeter | 20 | 80 |
| Assistant | 0 | 10 |
| Cashier | 0 | 75 |
B)
| Browse | Help | Buy | |
| Greeter | 20 | 15 | 80 |
| Assistant | 0 | 15 | 0 |
| Cashier | 0 | 15 | 75 |
C)
| Browse | Help | Buy | |
| Greeter | 20 | 10 | 65 |
| Assistant | 0 | 10 | 0 |
| Cashier | 0 | 10 | 65 |
D)
| Browse | Help + Buy | Help + Leave | Buy | |
| Greeter | 20 | 10 | 5 | 65 |
| Assistant | 0 | 10 | 5 | 0 |
| Cashier | 0 | 10 | 0 | 65 |
Answer: D
Explanation: There are four customer types and three resource types.
Difficulty: 2 Medium
Topic: Generalized Process Flow Patterns
Learning Objective: 05-01 Compute the demand for a resource in a process serving/producing a mix of customers/products.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
11) Not all of the 100 customers who walk into the C&A store per day will make a purchase. About 20% come to browse but not buy, 10% need assistance to complete a purchase, and 5% need assistance but leave without making a purchase. The other 65% purchase something without requiring assistance. C&A has one greeter (who greets every customer), two assistants (who deal with customers who need assistance), and two cashiers (who serve customers who purchase something). What is the total demand rate per day for the greeter?
Answer: A
Explanation: Demand for greeter = 20 + 10 + 5 + 65 = 100.
Difficulty: 2 Medium
Topic: Generalized Process Flow Patterns
Learning Objective: 05-01 Compute the demand for a resource in a process serving/producing a mix of customers/products.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
12) Not all of the 100 customers who walk into the C&A store per day will make a purchase. About 20% come to browse but not buy, 10% need assistance to complete a purchase, and 5% need assistance but leave without making a purchase. The other 65% purchase something without requiring assistance. C&A has one greeter (who greets every customer), two assistants (who deal with customers who need assistance), and two cashiers (who serve customers who purchase something). What is the total demand rate per day for assistants?
Answer: C
Explanation: Demand for assistants = 10 customers who need assistance in completing a purchase + 5 who need assistance but leave without making a purchase = 15.
Difficulty: 2 Medium
Topic: Generalized Process Flow Patterns
Learning Objective: 05-01 Compute the demand for a resource in a process serving/producing a mix of customers/products.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
13) Not all of the 100 customers who walk into the C&A store per day will make a purchase. About 20% come to browse but not buy, 10% need assistance to complete a purchase, and 5% need assistance but leave without making a purchase. The other 65% purchase something without requiring assistance. C&A has one greeter (who greets every customer), two assistants (who deal with customers who need assistance), and two cashiers (who serve customers who purchase something). What is the total demand rate per day for cashiers?
Answer: B
Explanation: Demand for cashiers = 10 customers who need assistance + 65 who do not require assistance = 75.
Difficulty: 2 Medium
Topic: Generalized Process Flow Patterns
Learning Objective: 05-01 Compute the demand for a resource in a process serving/producing a mix of customers/products.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
14) A ________ is a combination of different types of flows through a process.
Answer: D
Explanation: A product mix is a combination of different types of flows moving through a process.
Difficulty: 1 Easy
Topic: Generalized Process Flow Patterns
Learning Objective: 05-01 Compute the demand for a resource in a process serving/producing a mix of customers/products.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
15) A ________ determines how many flow units of each type are flowing through each ________.
Answer: B
Explanation: A demand table determines how many flow units of each type are flowing through each resource.
Difficulty: 1 Easy
Topic: Generalized Process Flow Patterns
Learning Objective: 05-01 Compute the demand for a resource in a process serving/producing a mix of customers/products.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
16) All students register with the receptionist upon arrival at a university orientation. The receptionist will assign each student to one of four groups, each of which takes a different path during their tour of the campus. Each campus tour has its designated tour guide. In setting up a demand table, how many rows of resource type and columns of flow unit type does the situation have?
Answer: C
Explanation: Each student will be assigned to one of the four tour groups. Therefore, there will be four types of students and five types of resources (the receptionist and tour guides 1 through 4).
Difficulty: 1 Easy
Topic: Generalized Process Flow Patterns
Learning Objective: 05-01 Compute the demand for a resource in a process serving/producing a mix of customers/products.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
17) C&A makes two types of products using four machines. Product A visits machines 1, 2, and 4. Product B only visits machines 1 and 3. The demand per day is 40 units for Product A and 160 units for Product B. What does the demand table for C&A look like?
A)
| All products | |
| Machine 1 | 200 |
| Machine 2 | 40 |
| Machine 3 | 160 |
| Machine 4 | 40 |
B)
| Product A | Product B | |
| Machine 1 | 1 | 1 |
| Machine 2 | 1 | 0 |
| Machine 3 | 0 | 1 |
| Machine 4 | 1 | 0 |
C)
| Product A | Product B | |
| Machine 1 | 40 | 160 |
| Machine 2 | 40 | 0 |
| Machine 3 | 0 | 160 |
| Machine 4 | 40 | 0 |
D)
| Product A | Product B | |
| All machines | 40 | 160 |
Answer: C
Explanation: Demand rate for Product A is 40 units per day. Demand rate for Product B is 160 units per day. Machine 1 is visited by Products A and B. Machine 2 is visited by Product A only. Machine 3 is visited by Product B only. Machine 4 is visited by Product A only.
Difficulty: 2 Medium
Topic: Generalized Process Flow Patterns
Learning Objective: 05-01 Compute the demand for a resource in a process serving/producing a mix of customers/products.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
18) Which of the following statements is TRUE regarding implied utilization?
Answer: C
Explanation: Implied utilization = Total demand at the resource/Capacity at the resource. Therefore, if implied utilization is 1.7, that means demand exceeds capacity by 1.7 – 1 = 0.7 or 70%.
Difficulty: 2 Medium
Topic: How to Find the Bottleneck in a Process with Multiple Flows
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
19) Which of the following statements is TRUE regarding utilization and implied utilization?
Answer: C
Explanation: Implied utilization measures by how much demand exceeds the capacity of the resource. If it exceeds 1, then it means the process is capacity constrained.
Difficulty: 1 Easy
Topic: How to Find the Bottleneck in a Process with Multiple Flows
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
20) A process is ________ constrained if the implied utilization of any resource is above 100%.
Answer: A
Explanation: A process is supply constrained if the implied utilization of any resource is above 100%.
Difficulty: 1 Easy
Topic: How to Find the Bottleneck in a Process with Multiple Flows
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
21) A process is ________ constrained if the highest implied utilization of all resources is less than or equal to 100%.
Answer: B
Explanation: A process is demand constrained if the implied utilization of the resource is below 100%.
Difficulty: 1 Easy
Topic: How to Find the Bottleneck in a Process with Multiple Flows
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
22) The steps involved in finding the bottleneck in a process with a product mix include all the following EXCEPT ________.
Answer: C
Explanation: The bottleneck in a process with a product mix is the resource with the highest implied utilization, and does not involve the flow rate. Besides, flow rate should be computed in relation to each flow unit type.
Difficulty: 2 Medium
Topic: How to Find the Bottleneck in a Process with Multiple Flows
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
23) The resource with the ________ is the bottleneck in a process with multiple types of flow units.
Answer: C
Explanation: The resource with the highest implied utilization is the bottleneck in a process with multiple types of flow units.
Difficulty: 1 Easy
Topic: How to Find the Bottleneck in a Process with Multiple Flows
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
24) C&A makes two types of products using four machines from 9 a.m. to 5 p.m. each day. Product A visits machines 1, 2, and 4. Product B only visits machines 1 and 3. The capacity is 0.4 unit per minute at machine 1, 0.12 unit per minute at machine 2, 0.2 unit per minute at machine 3, and 0.3 unit per minute at machine 4. The demand per day is 40 units for Product A and 160 units for Product B. Which is the implied utilization for the bottleneck resource?
Answer: A
Explanation: Total demand rate for machine 1 = 40 + 160 = 200 units per day. Total demand rate for machine 2 = 40 units per day. Total demand rate for machine 3 = 160 units per day. Total demand rate for machine 4 = 40 units per day. Implied utilization for machine 1 = 200/(0.4 × 8 × 60) = 1.04. Implied utilization for machine 2 = 40/(0.12 × 8 × 60) = 0.69. Implied utilization for machine 3 = 160/(0.2 × 8 × 60) = 1.67. Implied utilization for machine 4 = 40/(0.3 × 8 × 60) = 0.28. The bottleneck is the resource with the highest implied utilization, which is machine 3.
Difficulty: 2 Medium
Topic: How to Find the Bottleneck in a Process with Multiple Flows
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
25) C&A makes two types of products using four machines from 9 a.m. to 5 p.m. each day. Product A visits machines 1, 2, and 4. Product B only visits machines 1 and 3. The capacity is 0.4 unit per minute at machine 1, 0.12 unit per minute at machine 2, 0.2 unit per minute at machine 3, and 0.3 unit per minute at machine 4. The demand per day is 40 units for Product A and 160 units for Product B. What is the implied utilization for machine 1?
Answer: B
Explanation: Total demand for machine 1 = 40 + 160 = 200 units per day. Capacity for machine 1 = 0.4 unit per minute or 0.4 × 8 × 60 units per day. Implied utilization for machine 1 = 200/(0.4 × 8 × 60) = 1.04.
Difficulty: 2 Medium
Topic: How to Find the Bottleneck in a General Process Flow
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
26) C&A makes two types of products using four machines from 9 a.m. to 5 p.m. each day. Product A visits machines 1, 2, and 4. Product B only visits machines 1 and 3. The capacity is 0.4 unit per minute at machine 1, 0.12 unit per minute at machine 2, 0.2 unit per minute at machine 3, and 0.3 unit per minute at machine 4. The demand per day is 40 units for Product A and 160 units for Product B. Which resource is the bottleneck?
Answer: C
Explanation: Total demand for machine 1 = 40 + 160 = 200 units per day. Total demand for machine 2 = 40 units per day. Total demand for machine 3 = 160 units per day. Total demand for machine 4 = 40 units per day. Implied utilization for machine 1 = 200/(0.4 × 8 × 60) = 1.04. Implied utilization for machine 2 = 40/(0.12 × 8 × 60) = 0.69. Implied utilization for machine 3 = 160/(0.2 × 8 × 60) = 1.67. Implied utilization for machine 4 = 40/(0.3 × 8 × 60) = 0.28. The bottleneck is the resource with the highest implied utilization, which is machine 3.
Difficulty: 2 Medium
Topic: How to Find the Bottleneck in a General Process Flow
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
27) C&A makes two types of products using four machines from 9 a.m. to 5 p.m. each day. Product A visits machines 1, 2, and 4. Product B only visits machines 1 and 3. The capacity is 0.4 unit per minute at machine 1, 0.12 unit per minute at machine 2, 0.2 unit per minute at machine 3, and 0.3 unit per minute at machine 4. The demand per day is 40 units for Product A and 160 units for Product B. Assume the relative proportion between the two product types remains constant. What is the flow rate for Product B in units per day?
Answer: B
Explanation: Product B visits machines 1 and 3. Product A also visits machine 1, but not machine 3. Therefore, implied utilization of machine 1 = 200/(.4 × 8 × 60) = 1.04. Implied utilization of machine 3 = 160/(.2 × 8 × 60) = 1.67. The implied utilization is highest at machine 3, and 1.67 is greater than 1, so the process is capacity constrained. Flow rate for Product B = Demand rate/Implied utilization of the bottleneck = 160/1.67 = 96 units per day
Difficulty: 3 Hard
Topic: How to Find the Bottleneck in a Process with Multiple Flows
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
28) About 80% of customers who receive a promotion coupon will visit the store, but only 20% of those in the store will make a purchase. What is the overall process yield of the promotion?
Answer: D
Explanation: Of the 100% of customers who received a coupon, 80% visited the store, and 20% of those made a purchase. Overall process yield = 1 × 0.80 × 0.20 = 0.16.
Difficulty: 1 Easy
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
29) About 80% of customers who receive a promotion coupon will visit the store, but only 20% of those in the store will make a purchase. How many promotion coupons have to be sent in order to get 100 customers to make a purchase?
Answer: B
Explanation: Use the formula “Number of units started to get Q good units = Q/Process yield”. Q is 100, and process yield is 1 × 0.80 × 0.20 = 0.16. Number of promotion coupons that have to be sent = 100/0.16 = 625
Difficulty: 1 Easy
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
30) Which of the following is an example of attrition loss?
Answer: C
Explanation: Loan applicants who are rejected in the loan application process are regarded as attrition losses.
Difficulty: 1 Easy
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
31) In a process with attrition loss, all flow units start at ________ resource and drop out of the process at ________ points.
Answer: A
Explanation: In a process with attrition loss, all flow units start at the same resource but then drop out of or are removed from the process at different points.
Difficulty: 1 Easy
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
32) When defective flow units are removed from the process and do not return, this process is known as ________.
Answer: C
Explanation: Scrapping is the process of removing defective flow units from a process which are not returned to the process for rework.
Difficulty: 1 Easy
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
33) The ________ of a resource measures the percentage of ________ units that are processed at this resource.
Answer: B
Explanation: The yield of a resource measures the percentage of non-defective units that are processed at this resource.
Difficulty: 1 Easy
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
34) Which of the following statements about the yield of a process is FALSE?
Answer: D
Explanation: The yield of a process is the percentage of units processed correctly. It cannot exceed 100%.
Difficulty: 1 Easy
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
35) A three-step process is used to make a product. The yield of step 1 is 90%; of step 2, 70%; and of step 3, 50%. What is the yield of the overall process?
Answer: C
Explanation: The yield of the overall process = 0.9 × 0.7 × 0.5 = 0.315.
Difficulty: 2 Medium
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Understand
AACSB: Analytical Thinking
36) A three-step process is used to make a product. The yield of step 1 is 50%; of step 2, 80%; and of step 3, 20%. How many units must be started at step 1 to get 100 good units from the process?
Answer: D
Explanation: Process yield = 0.5 × 0.8 × 0.2 = 0.08 or 8%. Number of good units = Q/Process yield = 100/0.08 = 1250.
Difficulty: 2 Medium
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
37) A three-step process is used to make a product. The yield of step 1 is 80%; of step 2, 40%; and of step 3, 50%. Step 1 takes 2 minutes per unit. Step 2 takes 4 minutes per unit. Step 3 takes 5 minutes. Which step in the process is the bottleneck, and how many good units can be produced from this process in one 8-hour day?
Answer: D
Explanation: To determine the bottleneck, we multiply capacity for a resource by its “yield of good finished units” and determine which step has the smallest capacity of good units per minute. To find capacity for each step, we divide 1/processing time. Step 1 has a capacity of ½= 0.50, step 2’s capacity is ¼ or 0.25, and step 3’s capacity is 1/5 or 0.20. “Yield of good finished units” is that step’s yield times the yield of each subsequent step. Step 1 has a finished unit yield of 0.8 × 0.4 × 0.5 = 0.16. Step 2 is 0.4 × 0.5 = 0.2 unit. Step 3 is 0.50. Capacity of good finished units per minute for step 1 is 0.5 × 0.16 = 0.08; step 2 is 0.25 × 0.2 = .05; step 3 is 0.2 × 0.5 = 0.1. Step 2 is the bottleneck. Yield per day is set by the bottleneck’s yield, which is 8 hours × 60 minutes × 0.05 good units per minute = 24.
Difficulty: 1 Easy
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
38) A three-step process is used to make a product. The yield of step 1 is 80%; of step 2, 40%; and of step 3, 50%. Step 1 takes 2 minutes per unit. Step 2 takes 4 minutes per unit. Step 3 takes 5 minutes. How many good units can the process produce per hour?
Answer: C
Explanation: The bottleneck step determines the hourly rate of good units. Capacity for good units at each step is capacity × yield in good units per minute. For capacity, use 1/processing time. Yield of finished units for each step is that step’s yield × yield of each subsequent step. For step 1: (1/2) × (0.8 × 0.4 × 0.5) = 0.08. For step 2: (1/4) × (0.4 × .5) = 0.05. For step 3: (1/5) × 0.5 = 0.1. Step 2 is the bottleneck. Given the bottleneck’s capacity of 0.05 good products per minute, in one hour the system can product 60 × 0.05 = 3 good units.
Difficulty: 3 Hard
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Analyze
AACSB: Analytical Thinking
39) When analyzing a process flow with flow-dependent processing times, the flow unit is changed from using ________ to ________.
Answer: B
Explanation: When analyzing a process flow with flow-dependent processing times, the flow unit is changed from using a unit of demand to a unit of work.
Difficulty: 1 Easy
Topic: Flow-Dependent Processing Times
Learning Objective: 05-03 Analyze a process with flow-dependent processing times.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
40) A workload table has ________ as columns and ________ as rows.
Answer: D
Explanation: A workload table has flow unit types as columns and resource types as rows.
Difficulty: 1 Easy
Topic: Flow Unit–Dependent Processing Times
Learning Objective: 05-03 Analyze a process with flow-dependent processing times.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
41) A workload table captures the ________ that each flow unit type requires for each resource.
Answer: A
Explanation: A workload table captures the amount of work that each flow unit type requires for each resource.
Difficulty: 1 Easy
Topic: Flow-Dependent Processing Times
Learning Objective: 05-03 Analyze a process with flow-dependent processing times.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
42) Which of the following statements is TRUE regarding a process flow with flow-dependent processing times?
Answer: C
Explanation: The bottleneck in a process flow with flow-dependent processing times is the resource with the highest implied utilization.
Difficulty: 1 Easy
Topic: Flow-Dependent Processing Times
Learning Objective: 05-03 Analyze a process with flow-dependent processing times.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
43) Which of the following statements is FALSE regarding the workload table?
Answer: C
Explanation: The workload table does not contain information about the time available at each resource.
Difficulty: 1 Easy
Topic: Flow-Dependent Processing Times
Learning Objective: 05-03 Analyze a process with flow-dependent processing times.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
44) Two types of customers are served by a two-step process. Each resource is staffed by one employee. Customer A spends two minutes at resource X and five minutes at resource Y. Customer B spends five minutes at resource X and two minutes at resource Y. The demand rate per hour is 10 customer As and 15 customer Bs. Which of the following is the workload table for this situation?
| All customers | |
| Resource X | 95 |
| Resource Y | 80 |
| Customer A | Customer B | |
| Resource X | 2 | 5 |
| Resource Y | 5 | 2 |
| Customer A | Customer B | |
| Resource X | 20 | 75 |
| Resource Y | 50 | 30 |
| Customer A | Customer B | |
| All resources | 70 | 105 |
Answer: C
Explanation: Workload for customer A at resource X = 10 × 2; Workload for customer A at resource Y = 10 × 5; Workload for customer B at resource X = 15 × 5; Workload for customer B at resource Y = 15 × 2.
Difficulty: 2 Medium
Topic: Flow-Dependent Processing Times
Learning Objective: 05-03 Analyze a process with flow-dependent processing times.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
45) Two types of customers are served by a two-step process. Each resource is staffed by one employee. Customer A spends two minutes at resource X and five minutes at resource Y. Customer B spends five minutes at resource X and two minutes at resource Y. The demand rate per hour is 10 customer As and 15 customer Bs. What is the workload for resource X across all customer types?
Answer: C
Explanation: Workload for resource X = (10 × 2) + (15 × 5) = 95 minutes per hour.
Difficulty: 2 Medium
Topic: Flow-Dependent Processing Times
Learning Objective: 05-03 Analyze a process with flow-dependent processing times.
Bloom’s: Understand
AACSB: Analytical Thinking
46) Two types of customers are served by a two-step process. Each resource is staffed by one employee. Customer A spends two minutes at resource X and five minutes at resource Y. Customer B spends five minutes at resource X and two minutes at resource Y. The demand rate per hour is 10 customer As and 15 customer Bs. What is the workload for resource Y across all customer types?
Answer: B
Explanation: Workload for resource Y = (10 × 5) + (15 × 2) = 80 minutes per hour.
Difficulty: 2 Medium
Topic: Flow-Dependent Processing Times
Learning Objective: 05-03 Analyze a process with flow-dependent processing times.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
47) Two types of customers are served by a two-step process. Each resource is staffed by one employee. Customer A spends two minutes at resource X and five minutes at resource Y. Customer B spends five minutes at resource X and two minutes at resource Y. The demand rate per hour is 10 customer As and 15 customer Bs. Where in the process is the bottleneck and what is its implied utilization?
Answer: A
Explanation: Workload for resource X = (10 × 2) + (15 × 5) = 95 minutes per hour; Implied utilization for resource X = 95/60 = 1.58. Workload for resource Y = (10 × 5) + (15 × 2) = 80 minutes per hour; Implied utilization for resource Y = 80/60 = 1.33. Resource X has the higher implied utilization and therefore is the bottleneck.
Difficulty: 3 Hard
Topic: Flow-Dependent Processing Times
Learning Objective: 05-03 Analyze a process with flow-dependent processing times.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
48) Two types of customers are served by a two-step process. Each resource is staffed by one employee. Customer A spends two minutes at resource X and five minutes at resource Y. Customer B spends five minutes at resource X and two minutes at resource Y. The demand rate per hour is 10 customer As and 15 customer Bs. What is the flow rate for customer A, holding the mix of A and B constant?
Answer: B
Explanation: Workload for resource X = (10 × 2) + (15 × 5) = 95 minutes per hour; Implied utilization for resource X = 95/60 = 1.58. Workload for resource Y = (10 × 5) + (15 × 2) = 80 minutes per hour; Implied utilization for resource Y = 80/60 = 1.33. Resource X has the higher implied utilization of 1.58, which is greater than 1. The process is capacity constrained. Flow rate for customer A = 10/1.58 = 6.3 customers per hour.
Difficulty: 3 Hard
Topic: Flow-Dependent Processing Times
Learning Objective: 05-03 Analyze a process with flow-dependent processing times.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
49) Two types of customers are served by a two-step process. Each resource is staffed by one employee. Customer A spends two minutes at resource X and five minutes at resource Y. Customer B spends five minutes at resource X and two minutes at resource Y. The demand rate per hour is 10 customer As and 15 customer Bs. What is the flow rate for customer B, holding the mix of A and B constant?
Answer: C
Explanation: Workload for resource X = (10 × 2) + (15 × 5) = 95 minutes per hour; Implied utilization for resource X = 95/60 = 1.58. Workload for resource Y = (10 × 5) + (15 × 2) = 80 minutes per hour; Implied utilization for resource Y = 80/60 = 1.33. Resource X has the higher implied utilization of 1.58, which is greater than 1. The process is capacity constrained. Flow rate for customer B = 15/1.58 = 9.5 customers per hour.
Difficulty: 3 Hard
Topic: Flow-Dependent Processing Times
Learning Objective: 05-03 Analyze a process with flow-dependent processing times.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
50) Rework is a ________ of activities that have to be completed by a ________ flow unit in order to be restored to a good flow unit.
Answer: C
Explanation: Rework is to repeat activities that have to be completed by a defective flow unit in order to be restored to a good flow unit.
Difficulty: 1 Easy
Topic: Rework
Learning Objective: 05-05 Analyze a process with rework.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
51) Which of the following process flow diagrams DOES NOT represent a process with rework?
A)
B)
C)
D)
Answer: A
Explanation: Rework is represented as a loop showing resources that a unit has revisited or an extra set of activities that have to be completed by a defective flow unit in order to be restored to a good flow unit.
Difficulty: 1 Easy
Topic: Rework
Learning Objective: 05-05 Analyze a process with rework.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
52) Which of the following statements concerning rework is TRUE?
Answer: D
Explanation: Rework revisits a particular resource and thus increases the demand rate for that resource.
Difficulty: 1 Easy
Topic: Rework
Learning Objective: 05-05 Analyze a process with rework.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
53) Which of the following statements concerning rework is TRUE?
Answer: D
Explanation: Rework attempts to restore the overall process yield to 1. Scrap, on the other hand, simply exits the process according to the yield at a particular resource.
Difficulty: 1 Easy
Topic: Rework
Learning Objective: 05-05 Analyze a process with rework.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
54) Students who failed a course last semester are retaking it this semester. This is an example of ________.
Answer: B
Explanation: Rework refers to a repetition of activities or an extra set of activities that have to be completed by a defective unit in order to be restored to a good flow unit.
Difficulty: 1 Easy
Topic: Rework
Learning Objective: 05-05 Analyze a process with rework.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
55) ________ refers to a ________ of activities or an extra set of activities that have to be completed by a defective unit in order to be restored to a good flow unit.
Answer: C
Explanation: Rework refers to a repetition of activities or an extra set of activities that have to be completed by a defective unit in order to be restored to a good flow unit.
Difficulty: 1 Easy
Topic: Rework
Learning Objective: 05-05 Analyze a process with rework.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
56) A four-step process is used to make a product. The first resource takes 8 minutes per unit, the second takes 7 minutes per unit, the third takes 2 minutes per unit, and the fourth takes 10 minutes per unit. 20% of all units have to be reworked. For that, they have to revisit the third and fourth resources. Each resource is staffed by one worker. Rework takes the same processing times as the first pass and always fixes the problem. Where is the bottleneck?
Answer: D
Explanation: Workload for resource 1 = (0.8 × 8) + (0.2 × 8) = 8 minutes per unit; Workload for resource 2 = (0.8 × 7) + (0.2 × 7) = 7 minutes per unit; Workload for resource 3 = (0.8 × 2) + [0.2 × (2 + 2)] = 2.4 minutes per unit; Workload for resource 4 = (0.8 × 10) + [0.2 × (10 + 10)] = 12 minutes per unit. Each resource has one worker who can provide one minute of work each minute. The implied utilization for resource 1 is 8%; for resource 2, 7%; for resource 3, 2.4%; and for resource 4, 12%. The highest implied utilization is 12% at resource 4.
Difficulty: 3 Hard
Topic: Rework
Learning Objective: 05-05 Analyze a process with rework.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
57) A four-step process is used to make a product. The first resource takes 8 minutes per unit, the second takes 7 minutes per unit, the third takes 2 minutes per unit, and the fourth takes 10 minutes per unit. 20% of all units have to be reworked. For that, they have to revisit the third and fourth resources. Each resource is staffed by one worker. Rework takes the same processing times as the first pass and always fixes the problem. What is the capacity of the process in units per minute?
Answer: A
Explanation: Workload for resource 1 = (0.8 × 8) + (0.2 × 8) = 8 minutes per unit; Workload for resource 2 = (0.8 × 7) + (0.2 × 7) = 7 minutes per unit; Workload for resource 3 = (0.8 × 2) + [0.2 × (2 + 2)] = 2.4 minutes per unit; Workload for resource 4 = (0.8 × 10) + [0.2 × (10 + 10)] = 12 minutes per unit. Each resource has one worker who can provide one minute of work each minute. The implied utilization for resource 1 is 8%; for resource 2, 7%; for resource 3, 2.4%; and for resource 4, 12%. The highest implied utilization is 12%. Capacity = 1/12 = 0.08 unit per minute.
Difficulty: 3 Hard
Topic: Rework
Learning Objective: 05-05 Analyze a process with rework.
Bloom’s: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
58) The salesforce of Small Travel Company (STC) is selling cultural immersion programs to U.S. college students that allow them to spend 3 months in Europe.
STC advertises in various college newspapers, as well as via social media. Potential customers fill out an online application form expressing their interest in more information about this experience. The form also includes their phone number for follow-up discussion, which sometimes, but not always, leads to the customer purchasing the package (more details below).
On 60 consecutive days in the winter, STC’s employees work hard to sell these programs to elite university students. The goal of the company is to sell, on average, two packages per day, leading to a total of 120 sold packages. The sales process works in four steps:
All employees work 8 hours per day.
How many students does STC have to contact each day through its call center to fill, on average, its target of 120 students per season (2 students per day)?
Answer: B
Explanation: Step 1 passes 100%. Step 2 passes 20% (40% pass × 50% choose to continue). Step 3 passes 100%. Step 4 passes 67% (2/3 of students at this step choose to continue). Use the formula Number of good units per day = Q/process yield. Q = 2/(1 × .2 × 1 × .67) = 14.93 rounded up to 15.
Difficulty: 3 Hard
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Apply
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
59) The salesforce of Small Travel Company (STC) is selling cultural immersion programs to U.S. college students that allow them to spend 3 months in Europe.
STC advertises in various college newspapers, as well as via social media. Potential customers fill out an online application form expressing their interest in more information about this experience. The form also includes their phone number for follow-up discussion, which sometimes, but not always, leads to the customer purchasing the package (more details below).
On 60 consecutive days in the winter, STC’s employees work hard to sell these programs to elite university students. The goal of the company is to sell, on average, two packages per day, leading to a total of 120 sold packages. The sales process works in four steps:
All employees work 8 hours per day.
Which resource is the bottleneck?
Answer: B
Explanation: Calculation of implied utilization
| Resource | Yield | Demand | Capacity | Implied utilization | |||||||||||||||||
| Salesperson | 1.00 | 15/1 | = | 15 | 1/20 | × | 60 | × | 8 | = | 24 | students per day | 15/24 | = | 0.625 | ||||||
| Language teacher | 0.20 | 3/0.2 | = | 15 | 1/40 | × | 60 | × | 8 | = | 12 | students per day | 15/12 | = | 1.25 | ||||||
| Accountant | 1.00 | 3/1 | = | 3 | 1/20 | × | 60 | × | 8 | = | 24 | students per day | 3/24 | = | 0.125 | ||||||
| Teacher’s assistant | 0.67 | 2/0.67 | = | 3 | 1/50 | × | 60 | × | 8 | = | 9.6 | students per day | 3/9.6 | = | 0.3125 | ||||||
Yield is based on “1 good output.” Demand is the quantity which must be started at that resource. The Demand formula is “number of desired units” / “yield for that resource,” and we will work backwards starting at teacher’s assistant. The goal is “2 good outputs” per day exiting the process at teacher’s assistant. 2/0.67 = 3 applications that must be started by the teacher’s assistant per day, in order to result in 2 good outputs. This demand is placed in the numerator of the previous resource, the accountant, and so on, backward to the salesperson. Implied utilization is demand/capacity. The highest implied utilization is the language teacher.
Difficulty: 3 Hard
Topic: Attrition Losses, Yields, and Scrap Rates
Learning Objective: 05-04 Compute the yield of a process and be able to analyze a process flow with yield loss.
Bloom’s: Apply
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
60) Consider the following four-step assembly operation with quality problems. All resources are staffed by one employee.
Which resource in the process is the bottleneck?
Answer: B
Explanation:
| Good | Rework | Total per unit | IU per minute | ||||||||||||||||||||
| Resource 1 | 0.7 | × | 5 | 0.3 | × | [5 + 5] | 3.5 | + | 3 | = | 6.5 | 6.5/1 | = | 6.5 | |||||||||
| WL = | Resource 2 | 0.7 | × | 6 | 0.3 | × | [6 + 6] | 4.2 | + | 3.6 | = | 7.8 | 7.8/1 | = | 7.8 | ||||||||
| Resource 3 | 0.7 | × | 3 | 0.3 | × | [3 + 3] | 2.1 | + | 1.8 | = | 3.0 | 3.9/1 | = | 3.9 | |||||||||
| Resource 4 | 1.00 | × | 4 | 4 | 4/1 | = | 4 | ||||||||||||||||
The second resource is the bottleneck since it has the highest implied utilization.
Difficulty: 3 Hard
Topic: Rework
Learning Objective: 05-05 Analyze a process with rework.
Bloom’s: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
61) Consider the following four-step assembly operation with quality problems. All resources are staffed by one employee.
What is the capacity of the process (in units per hour)?
Answer: B
Explanation:
| Good | Rework | Total per unit | IU per minute | ||||||||||||||||||||
| Resource 1 | 0.7 | × | 5 | 0.3 | × | [5 + 5] | 3.5 | + | 3 | = | 6.5 | 6.5/1 | = | 6.5 | |||||||||
| WL = | Resource 2 | 0.7 | × | 6 | 0.3 | × | [6 + 6] | 4.2 | + | 3.6 | = | 7.8 | 7.8/1 | = | 7.8 | ||||||||
| Resource 3 | 0.7 | × | 3 | 0.3 | × | [3 + 3] | 2.1 | + | 1.8 | = | 3.0 | 3.9/1 | = | 3.9 | |||||||||
| Resource 4 | 1.00 | × | 4 | 4 | 4/1 | = | 4 | ||||||||||||||||
The second resource is the bottleneck since it has the highest implied utilization.
The capacity is 1/7.8 = 0.1282 unit per minute, × 60 = 7.7 units per hour.
Difficulty: 3 Hard
Topic: Rework
Learning Objective: 05-05 Analyze a process with rework.
Bloom’s: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
62) Consider a process that has multiple flow units with different demand rates and different paths through the process flow diagram. Consider the following statements:
III. The resource that has the highest implied utilization is the bottleneck.
Which of the following choices identifies the correct statement(s)?
Answer: A
Explanation: Implied utilization can be higher than 100%. Total demand and capacity at the resource must be taken into account in determining where the bottleneck is located. The resource with the highest implied utilization is the bottleneck.
Difficulty: 2 Medium
Topic: How to Find the Bottleneck in a Process with Multiple Flows
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
63) GV is a small accounting firm supporting wealthy individuals in their preparation of annual income tax statements. Every December, GV sends out a short survey to its customers, asking for the information required for preparing tax statements. Based on 50 years of experience, GV categorizes its cases into the following two groups:
This year, there are 35 income tax statements arriving each week.
In order to prepare the income tax statement, GV has three resources, or employees. The following activities are carried out by employees:
The administrative support person can process 40 statements per week. The senior accountant can process 10 statements per week. The junior accountant can process 30 statements per week; these statements can be completed more quickly given past information on file about the clients.
What is the implied utilization for the junior accountant?
Answer: D
Explanation: Implied utilization is Total demand at the resource/Capacity at the resource. Demand for the junior accountant is 80% of the 35 statements arriving weekly, or 28 statements. The capacity is 30 statements per week. IU = 28/30 = 93.3%.
Difficulty: 3 Hard
Topic: How to Find the Bottleneck in a Process with Multiple Flows
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Apply
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
64) GV is a small accounting firm supporting wealthy individuals in their preparation of annual income tax statements. Every December, GV sends out a short survey to its customers, asking for the information required for preparing tax statements. Based on 50 years of experience, GV categorizes its cases into the following two groups:
This year, there are 35 income tax statements arriving each week.
In order to prepare the income tax statement, GV has three resources, or employees. The following activities are carried out by employees:
The administrative support person can process 40 statements per week. The senior accountant can process 10 statements per week. The junior accountant can process 30 statements per week; these statements can be completed more quickly given past information on file about the clients.
Which resource is the bottleneck?
Answer: C
Explanation: The bottleneck is the resource with the highest implied utilization. Administrative support person processes all 35 statements, and has capacity for 40. IU = 35 /40 = 87.5%. Senior accountant IU = (0.2 × 35)/10 = 70%. Junior accountant IU = (0.8 × 35)/30 = 93.3%. Therefore, the junior accountant is the bottleneck resource.
Difficulty: 3 Hard
Topic: How to Find the Bottleneck in a Process with Multiple Flows
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Analyze
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
65) Which of the following statements about the concepts of “labor utilization” and “implied utilization” is correct?
Answer: C
Explanation: Labor utilization cannot be above 100%. Implied utilization can exceed 100%, as it includes additional information about how much demand exceeds capacity of the resource. In a capacity-constrained process, implied utilization will be bigger than utilization.
Difficulty: 2 Medium
Topic: How to Find the Bottleneck in a Process with Multiple Flows
Learning Objective: 05-02 Compute implied utilization to find the bottleneck in a general process flow.
Bloom’s: Understand
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible
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Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
