BSOP 206 Week 4 Quiz

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BSOP 206 Week 4 Quiz

1.Question :(TCO 8) ABC Motors, Inc., wants to increase capacity by adding another wheel balancer. The fixed costs for the machine is $16,000, and its variable cost is $4.50 per unit. ABC charges $8.50 to balance one wheel, the break-even point for the balancer. What is her break-even point in units?
Student Answer: 250 wheels
 1600 wheels
 3000 wheels
 4000 wheels


 2.Question :(TCO 9) A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites.

Affluence of local population.304040
Traffic flow.105020
Parking availability.403040
Growth potential.202010

The score for Midtown is _____ and the score for Bayside is ______.

Student Answer: Midtown = 7; Bayside = 8
 Midtown = 30; Bayside = 29
 Midtown = 30; Bayside = 45
 Midtown = 33; Bayside = 32


 3.Question :(TCO 8) A fleet repair facility has a design capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each and only 500 trucks were repaired. What is the utilization of the repair shop last month?
Student Answer: 30.1%


 4.Question :(TCO 8) ABC Cleaners’ washing machines have a design capacity 2800 pounds a day. Because of scheduled maintenance of their equipment, management feels that only 2600 pounds of clothes can be washed in a day. Yesterday three employees were sick and only 1900 pounds of clothes were washed. What was the efficiency of the washing machine yesterday?
Student Answer: 120%

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 5.Question :(TCO 8) Design capacity is the:
Student Answer: maximum output of a system in a given period
 actual production over a specified time period in ideal conditions
 average output that can be achieved under ideal conditions
 maximum usable capacity of a particular facility
 the capacity a firm expects to achieve given the current operating constraints


 6.Question :(TCO 8) Actual output as a percent of design capacity is:
Student Answer: Effective capacity


 7.Question :(TCO 9) When making a location decision at the region/community level, which of these would be considered?
Student Answer: government rules, attitudes, stability, and incentives
 location of markets
 air, rail, highway, and waterway systems
 zoning restrictions
 none of the above


 8.Question :(TCO 9) The focus in service location strategy is on:
Student Answer: minimizing cost
 maximizing customer input
 locating far away from competition
 none of the above


 9.Question :(TCO 9) Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?
Student Answer: transportation method
 locational break-even analysis
 factor rating method
 factor processes


 1.Question :(TCO 8) What are the assumptions of break-even analysis?


 2.Question :(TCO 8) Identify the six tactics for matching capacity to demand.


 3.Question :(TCO 9) What is the objective of a location strategy?


 4.Question :(TCO 9) Identify at least three of the conditions or situations that have fostered globalization.


 5.Question :(TCO 9) What are the major/critical factors that affect region/community location decisions?



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