OPS Exam 2

Consider an espresso stand with a single barista. Customers arrive at the stand at the rate of 28 per hour according to a Poisson distribution. Service times are exponentially distributed with a service rate of 35 customers per hour. The probability that the server is busy is

P = 28 / 35 = 0.80

Consider an espresso stand with a single barista. Customers arrive at the stand at the rate of 28 per hour according to a Poisson distribution. Service times are exponentially distributed with a service rate of 35 customers per hour. The probability that there are exactly 3 customers in the system is

P0 = 1 - 28 / 35 = 0.20 P3 = (28 / 35)^3 * 0.20 = 0.1024

Consider an espresso stand with a single barista. Customers arrive at the stand at the rate of 28 per hour according to a Poisson distribution. Service times are exponentially distributed with a service rate of 35 customers per hour. The probability that there are more than 2 customers in the system is

P0 = 1 - 28 / 35 = 0.20 P1 = 28 / 35 = 0.80 P3 = (28 / 35)^3 * 0.20 = 0.1024 P2 or more = 1 - (P0 + P1 + P3) = 1 - (0.2 + 0.8 + 0.1024) = 0.512

Consider an espresso stand with a single barista. Customers arrive at the stand at the rate of 28 per hour according to a Poisson distribution. Service times are exponentially distributed with a service rate of 35 customers per hour. The probability that the server is idle is

Po = 1 - 28 / 35 = 0.20

The number of arrivals per unit of time at a service facility can frequently be described by a

Poisson Distribution

A dentist office is an example of a

Professional Service

company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives If total demand (volume) is 120,000 units, then the company should

Profit = 120,000 * ($35 - $25) - $500,000 = $700,000

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives Process A: FC-500,000 VC-25 Process B: FC-750,000 VC-23 If total demand (volume) is 150,000 units, then the company should

Profit = 150,000 * ($35 - $23) - $750,000 = $1,050,000

An airline is an example of a

Service Factory

A teacher is an example of a

Service Shop

Which of the following is not a characteristic of a service? Tangible Variable output High customer contact Perishable

Tangible

In a waiting line system, the ___________ reflects the probability that the server is busy and the customer must wait. utilization factor queue discipline average number of customers in the system probability the system is idle

Utilization Factor

Consider an espresso stand with a single barista. Customers arrive to the stand at the rate of 28 per hour according to a Poisson distribution. Service times are exponentially distributed with a service rate of 35 customers per minute. If the arrival rate remains at 28 customers per hour and the stand's manager wants to have the average time a customer spends in the system (i.e., wait time and service time) to be a maximum of 6 minutes on average, then the service rate must decrease by 2 to 33 customers per hour. decrease by 3 to 32 customers per hour. increase by 3 to 38 customers per hour. increase by 2 to 37 customers per hour.

Waiting Line Analysis for Service Improvement 6 / 60 = 0.1hr; 0.1 = 1 / (µ - 28); µ = 38

Consider an espresso stand with a single barista. Customers arrive at the stand at the rate of 28 per hour according to a Poisson distribution. Service times are exponentially distributed with a service rate of 35 customers per hour. The average number of customers in the system (i.e., waiting and being served) is

Waiting Line Analysis for Service Improvement L = 28 / (35 - 28) = 4.0

Consider an espresso stand with a single barista. Customers arrive at the stand at the rate of 28 per hour according to a Poisson distribution. Service times are exponentially distributed with a service rate of 35 customers per hour. The average time in minutes a customer spends in the system (i.e., waiting and being served) is

Waiting Line Analysis for Service Improvement W = 1 / (35 - 28) * 60 = 8.58

Consider an espresso stand with a single barista. Customers arrive at the stand at the rate of 28 per hour according to a Poisson distribution. Service times are exponentially distributed with a service rate of 35 customers per hour. The average time in minutes a customer spends waiting in line for service is

Waiting Line Analysis for Service Improvement Wq = 28 / (35 * 7) * 60 = 6.84

The two critical decisions concerning capacity include

When to increase and where to locate.

A schematic diagram that uses weighted lines to denote location preference is known as a

a relationship diagram.

A print shop is an example of which of the following process choices? project batch production continuous production mass production

batch production

Complex scheduling problems are most likely to occur with which process type? mass production batch production continuous production none of these answer choices is correct.

batch production

One disadvantage of mass production is its efficiency. speed of production. low per-unit costs. lack of responsiveness.

lack of responsiveness.

A ____________ provides historical data on the movement of parts and materials between departments.

load summary chart

Capacity is defined as the

maximum capability to produce.

Material handling equipment that can follow multiple paths, move in any direction, and carry large loads of in-process inventory is most likely to be associated with a _________ layout

process

Similar activities are grouped together in departments or work centers according to the function with a __________ layout.

process

The ease of adjusting resources in response to changes in demand defines a firm's vertical integration. process flexibility. customer involvement. capital intensity.

process flexibility.

The material storage space required for in-process inventory is typically larger in a

process layout.

Most service organizations use

process layouts.

With a ___________ layout, activities are arranged in a line according to the sequence of operations.

product

Which of the following statements is true?

product layouts are efficient; process layouts are flexible

All the following are factors influencing the outsourcing decision except capacity. expertise. quality. product variety.

product variety.

The ______________ refers to the order in which waiting customers are served.

queue discipline

When opportunities for continuous improvement of a process have been exhausted, it may be time to

redesign or innovate.

A format for displaying manager preferences for departmental locations is known as

relationship diagram.

In general, as the number of servers in a waiting line

service cost increases and waiting cost decreases.

Mass production systems tend to employ specialized equipment and limited labor skills. specialized equipment and specialized labor skills. general purpose equipment and limited labor skills. general purpose equipment and specialized labor skills.

specialized equipment and limited labor skills

Processes are analyzed for all the following reasons except all these answer choices are correct.

speed-time-to-completion. for environmental considerations. to increase sustainability.

All the following are basic tools of process analysis except

spreadsheets.

The product-process matrix includes all the following process types except mass production. stable production. continuous production. batch production.

stable production.

The first step in process innovation is to determine

strategic directives.

The extent to which the firm will produce the inputs and control the outputs of each stage of the production process is known as vertical integration. process flexibility. process planning. capital intensity.

vertical integration.

If the average time to serve a customer is 3 minutes, then the service rate, µ, is

µ = 6-/3 = 20 per hour

f, on average, it takes 90 seconds to serve a customer then the hourly service rate, µ, is

µ = 60 / (90 / 60) = 40 per hour

Consider an espresso stand with a single barista. Customers arrive at the rate of 20 per hour according to a Poisson distribution. Service times are exponentially distributed with a mean service time of 2 minutes per customer. What is the service rate per hour for the espresso stand?

µ = 60 / 2 = 30 per hour

A company is considering producing an item that can be sold for $37.50 per unit. If the fixed costs for setting up production are $225,000 and the variable cost per unit for the item is $35 then the breakeven volume for this item is 6,000 units. 6,429 units. 72,500 units. 90,000 units.

$225,000 / ($37.50 - $35.00) = 90,000 units

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives Process A Process B Fixed Cost $500,000 $750,000 Variable Cost per Unit $25 $23 For what level of volume (output) would the firm prefer Process A to Process B? for all volume levels greater than 75,000 for all volume levels greater than 97,500 for all volume levels greater than 117,500 for all volume levels greater than 125,000

$500,000 + $25v = $750,000 + $23v; v = 125,000

Typical performance improvement resulting from a process innovation project ranges from 5 to 10%. 25 to 50%. 50 to 100%. 100 to 200%.

50 to 100%.

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives. Process A: FC-500,000 VC-25 Process B: FC-750,000 VC-23 The breakeven volume for the process A is

500,000 / (35 - 25) = 50,000 units

A small diner has one employee and a counter with seating for 8 customers. The diner does not package food for take out. Customers arrive at the diner at the rate of 20 per hour (Poisson distributed). Service times are exponentially distributed and average 24 per hour. Customers that arrive when all seats are taken do not enter the diner. What is the probability that the diner is full and an arriving customer does not enter? 0.8333 0.1667 0.2067 0.0481

0.0481

A service counter employs two servers. On average, a server requires 8 minutes to process a customer and service times follow an exponential distribution. Customers arrive at the counter at the rate of 12 per hour according to a Poisson distribution. The probability that there are no customers in the system is 0.800 0.536 0.369 0.111

0.111

A small diner has one employee and a counter with seating for 8 customers. The diner does not package food for takeout. Customers arrive at the diner at the rate of 20 per hour (Poisson distributed). Service times are exponentially distributed and average 24 per hour. Customers that arrive when all seats are taken do not enter the diner. What is the probability that there are no customers in the diner? 0.2067 0.7933 0.8333 0.1667

0.2067

A service counter employs two servers. On average, a server requires 8 minutes to process a customer and service times follow an exponential distribution. Customers arrive at the counter at the rate of 12 per hour according to a Poisson distribution. The probability that an arriving customer must wait for service is 0.7111 0.8000 0.8576 0.9327

0.7111

If a firm can sell a product for $40 each, then what is the volume needed to breakeven if the fixed cost of production is $125,000 and labor and material costs are $30. per item?

12,500

A service counter employs two servers. On average, a server requires 8 minutes to process a customer and service times follow an exponential distribution. Customers arrive at the counter at the rate of 12 per hour according to a Poisson distribution. The average amount of time spent by a customer waiting in line is approximately 0.370 minutes 2.844 minutes 14.22 minutes 22.20 minutes

14.22 minutes

A small diner has one employee and a counter with seating for 8 customers. The diner does not package food for takeout. Customers arrive at the diner at the rate of 20 per hour (Poisson distributed). Service times are exponentially distributed and average 24 per hour. Customers that arrive when all seats are taken do not enter the diner. What is the average number of customers waiting (average queue length)? 2.0432 2.8364 3.9785 5.9782

2.0432

A small diner has one employee and a counter with seating for 8 customers. The diner does not package food for takeout. Customers arrive at the diner at the rate of 20 per hour (Poisson distributed). Service times are exponentially distributed and average 24 per hour. Customers that arrive when all seats are taken do not enter the diner. What is the average number of customers in the diner? 2.0432 2.8364 3.7536 5.4837

2.8364

A service counter employs two servers. On average, a server requires 8 minutes to process a customer and service times follow an exponential distribution. Customers arrive at the counter at the rate of 12 per hour according to a Poisson distribution. The average number of customers waiting to be served would be 4.444 2.844 1.600 0.893

2.844

A service counter employs two servers. On average a server requires 8 minutes to process a customer and service times follow an exponential distribution. Customers arrive at the counter at the rate of 12 per hour according to a Poisson distribution. The average amount of time, in minutes, spent in the system (i.e., waiting and being served) is approximately 0.237 minutes 14.22 minutes 22.20 minutes 33.30 minutes

22.20 minutes

A service counter employs two servers. On average, a server requires 8 minutes to process a customer and service times follow an exponential distribution. Customers arrive at the counter at the rate of 12 per hour according to a Poisson distribution. On average, the total number of customers in the system (i.e., waiting and being served) would be 1.600 2.844 3.200 4.444

4.444

A small diner has one employee and a counter with seating for 8 customers. The diner does not package food for takeout. Customers arrive at the diner at the rate of 20 per hour (Poisson distributed). Service times are exponentially distributed and average 24 per hour. Customers that arrive when all seats are taken do not enter the diner. What is the average time a customer spends waiting? 2.5 minutes 3.0 minutes 6.44 minutes 24 minutes

6.44 minutes

A service counter employs two servers. On average, a server requires 8 minutes to process a customer and service times follow an exponential distribution. Customers arrive at the counter at the rate of 12 per hour according to a Poisson distribution. The service rate per server for this system is 3.75 customers per hour. 7.5 customers per hour. 8 customers per hour. 16 customers per hour.

7.5 customers per hour.

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35 per unit. The following cost information describes the two alternatives. Process A: FC-500,000 VC-25 Process B: FC-750,000 VC-23 The breakeven volume for process B is

750000 / (35 - 23) = 62,500 units

A small diner has one employee and a counter with seating for 8 customers. The diner does not package food for takeout. Customers arrive at the diner at the rate of 20 per hour (Poisson distributed). Service times are exponentially distributed and average 24 per hour. Customers that arrive when all seats are taken do not enter the diner. What is the average time a customer spends in the diner? 3 minutes 5.975 minutes 6.44 minutes 8.94 minutes

8.94 minutes

A company is considering producing a product for a new market. The fixed cost required for manufacturing and delivering the product is $50,000. Labor and material costs are estimated to be approximately $25 per product. If the product is sold for $35.00 each, the firm's breakeven volume would be 50,000 units 5,000 units 2,500 units 500 units

BE = 50,000 / (35 - 25) = 5,000 units

he ________________ is the source of customers for a waiting line system. calling population arrival rate service line channel service line phase

Calling Population

Which of the following is not a capacity expansion strategy?

Capacity stability strategy

Existing processes should be analyzed for improvement on a Continual basis. Sporadic basis As needed basis None of these answer choices is correct.

Continual basis.

Which of the following is not a basic element of a waiting line? arrivals servers cost of waiting

Cost of Waiting

Which of the following describes a process layout?

Equipment is general purpose and the workers are highly skilled.

Which of the following is not a standard label of the symbols used for the construction of a process flowchart? Improve Transport Operation Delay

Improve

Which of the following is not associated with the sourcing continuum?

In-house production

Consider an espresso stand with a single barista. Customers arrive at the stand at the rate of 28 per hour according to a Poisson distribution. Service times are exponentially distributed with a service rate of 35 customers per hour. The average number of customers waiting in line for service is

Lq = 28 * 28 / (35 * 7) = 3.2

A grocery store is an example of a

Mass Service

Which of the following is not an objective of facility layout?

Maximize bottlenecks

Which one of the following is not an example of a basic facility layout?

Mixed-model

Variable demand and small-to-moderate quantities produced to-order are characteristics usually associated with mass production. continuous production. projects. batch production.

batch production.

The ______________________ for a facility is the percent of capacity utilization that minimizes cost.

best operating level

Two techniques used to design process layouts are

block diagramming and relationship diagramming.

Process flowcharts document productive activities. nonproductive activities. both productive and nonproductive activities. none of these answers is correct.

both productive and nonproductive activities.

Facility design has an impact on

both quality and productivity.

Which of the following is not a characteristic of a service? a. Intangible b. Variable output c. Difficult to emulate d. Perishable

c

The ______________________ is the percent of demand held in reserve for unexpected occurrences.

capacity cushion

Technology decisions typical in operations management include all the following areas except

communication technology.

One of the best known computerized packages available for designing process layouts is CRAFT. CRAFT stands for

computerized relative allocation of facilities technique.

Steel, paper, paints, and chemicals are examples of products that use batch production. repetitive production. continuous production. mass production.

continuous production.

As process selection moves up the diagonal from project to continuous production demand volume increases. product variety increases. capital intensity decreases. flexibility increases.

demand volume increases.

The number of channels in a queuing process

denotes the number of parallel servers for servicing arriving customers.

The first step in building a flowchart is to define process boundaries. map out the process. determine objectives. none of these answer choices is correct.

determine objectives

When higher levels of output cost more per unit to produce, the facility realizes

diseconomies of scale.

When higher levels of output cost less per unit to produce, the facility realizes

economies of scale.

A high-level process map, useful in the beginning the redesign of a process, contain(s)

essential building blocks of the main activities.

Most of the operations in batch production involve fabrication. assembly. continuous processing. outsourcing.

fabrication.

Disadvantages of batch production include all of the following except high per-unit costs. frequent changes in product mix. flexibility. scheduling problems.

flexibility.

A type of service layout designed to encourage browsing and increase impulse purchasing is known as a

freeflow layout.

Which of the following is not an advantage of batch production? frequent changes in product mix flexibility customization of output quality reputation

frequent changes in product mix

Which of the following is not a characteristic of mass production? made-to-stock stable demand high product variety high product volume

high product variety

Which of the following is not an objective of effective layouts?

increase the number of bottlenecks