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Unformatted text preview: ISDS QUIZ #2 1. One essential ingredient of mass customization is modular design. T/F 2. Automated storage and retrieval systems are commonly used in distribution facilities of retailers. T/F 3. Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed costs of $500 and variable costs of $15 per unit. The crossover point between process A and process B is a. 200 units b. $9,500 c. 50 units d. $5,000 e. $2,500 4. A useful tactic for increasing capacity is to redesign a product in order to get more throughput. T/F 5. Adding a complementary product to what is currently being produced is a demand management strategy used when a. Price increases have failed to bring about demand management b. Efficiency exceeds 100 percent c. Demand exceeds capacity d. The existing product has seasonal or cyclical demand e. Capacity exceeds demand for a product which has stable demand 6. Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per unit. The breakeven point for machine A is a. 15,000 units b. $90,000 dollars c. 90,000 units d. $15,000 dollars e. Cannot be calculated from the information provided 7. In queuing problems, arrival rates are generally described by the normal probability distribution. T/F 8. Four of the most widely used waiting line models M/M/1 or A, M/M/S or B, M/D/1 of C, and Limited population or D all share three characteristics: Poisson arrivals, FIFO discipline, and exponential service times. T/F 9. A singlephase waitingline system meets the assumptions of constant service time or M/D/1. Units arrive at this system every 12 minutes on average. Service takes a constant 8 minutes. The average length of the queue Lq is approximately a. 5.0 b. 2.5 c. 4.5 d. 7.5 e. 0.67 10. Suppose a plant has a design capacity of 110 chairs per day and 10....
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This note was uploaded on 10/05/2010 for the course ISDS 2 taught by Professor Lu during the Spring '10 term at LSU.
 Spring '10
 Lu

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