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
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
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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
10. Suppose a plant has a design capacity of 110 chairs per day and
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 Spring '10
 Lu
 Poisson Distribution, decimal places, Sam Certo

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