Quiz #2.AttemptThree

Quiz #2.AttemptThree - ISDS QUIZ#2 1 Dells approach to...

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1. Dell’s approach to personal computer manufacturing is to use a product focus, which gives the company its low-cost competitive advantage. T/F 2. In selecting new equipment and technology, decision-makers look for flexibility-- the ability to respond with little penalty in time, cost, or customer value. T/F 3. Utilization in process-oriented facilities is frequently low because a. The postponement strategy for improving service productivity is being used b. Excess capacity for peak demands is desirable c. Scheduling in process-oriented facilities is not very complex d. With high fixed costs, utilization is not very important e. Low raw material inventories cause machines to be idled 4. Expected output is sometimes referred to as rated capacity. T/F 5. An organization whose capacity is on that portion of the average unit cost curve that falls as output rises a. Has efficiency higher than utilization b. Has a facility that is below optimum operating level and should build a larger facility c. Is suffering from diseconomies of scale d. Has utilization higher than efficiency e. Has a facility that is above optimum operating level and should build a smaller facility 6. A shop wants to increase capacity by adding a new machine. The firm is considering proposals from vendor A and vendor B. The fixed costs for machine A are $90,000 and for machine B, $75,000. The variable cost for A is $15.00 per unit and for B, $18.00 per unit. The revenue generated by the units processed on these machines is $22 per unit. If the estimated output is 9,000 units, which machine should be purchased? a.
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Quiz #2.AttemptThree - ISDS QUIZ#2 1 Dells approach to...

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