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Quiz #2.AttemptTwo

# Quiz #2.AttemptTwo - I SDS QUIZ#2 1 One essential...

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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 break-even 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 single-phase waiting-line 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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