16) ________ is the amount of time from when a customer places an order for a product or requests a service to when the product or service is delivered to the customer.
A) A bottleneck
B) A time driver
C) Customer response time
D) Manufacturing lead time
E) Quality customer time
17) On-time performance is
A) the time it takes distribution to pick up an order and deliver it to the customer.
B) within 2 standard deviations of customer response time.
C) within 2 standard deviations of manufacturing time.
D) equal to customer response time, divided by the number of orders from a specific customer.
E) when the product is delivered at the time scheduled to be delivered.
18) ________ refers to the average amount of time that an order will be in line before it is set up and processed.
A) Average manufacturing cycle time
B) Average customer response time
C) Average waiting time
D) Average on-time performance
E) Average setup time (per cycle)
19) The annual capacity of a machine is 3,500 hours, with the balance being taken for routine maintenance. It takes 50 hours to process one job (each job = 1 batch),. Altogether, there are seven employees who operate the machine at different times. Orders for the first six months of the year, which are typical, have averaged 50 jobs per month. The company expects 300 orders over the next six months.
Which of the following is true?
A) Expected capacity utilization = 700 batches.
B) Expected capacity utilization = 650 batches.
C) Expected capacity utilization = 600 batches.
D) Average waiting time is not relevant when expected capacity utilization is less than capacity.
E) Waiting time for at least one order will be nil.
20) For a fast-food restaurant the average waiting time might be formulated as
A)
B) [(average number of customers) × (average serving time)]/capacity
C)
D)
E) [(average number of employees) × (average serving time)]/serving time
21) The demand for Ballard’s Glass Company’s products varies, ranging from 10 to 20 windows a day with an average of 15. John Ballard works eight hours a day, five days a week. Each order is one window, and each window takes 26 minutes to install.
What is the average waiting time in minutes?
A) 1.6
B) 4.4
C) 28.2
D) 56.3
E) 82.3
22) The demand for Ballard’s Glass Company’s products varies. Each order is one window, and each window takes 26 minutes to install. Assuming wait time is 12 minutes, and order receipt time equals 21 minutes what is the cycle time for an order on average?
A) 21 minutes
B) 26 minutes
C) 38 minutes
D) 41 minutes
E) 59 minutes
23) The demand for Ballard’s Glass Company’s products varies, ranging from 10 to 20 windows a day with an average of 15. John Ballard works eight hours a day, five days a week. Each order is one window, and each window takes 26 minutes to install. The company plans to add doors to its product line and anticipates selling an average of 5 doors per day. Each door takes 12 minutes to install.
What is the average waiting time if Ballard is the only worker?
A) 38.0 minutes
B) 112.4 minutes
C) 181.0 minutes
D) 410.0 minutes
E) 523.4 minutes
24) The demand for Ballard’s Glass Company’s products varies, ranging from 10 to 20 windows a day with an average of 15. John Ballard works eight hours a day, five days a week. Each order is one window, and each window takes 26 minutes to install. The company plans to add doors to its product line and anticipates that they will sell an average of 5 doors per day. Each door takes 12 minutes to install.
Ballard is concerned with the increased waiting time if it adds doors. To offset this concern it can hire a part-time employee. This will decrease window time to 20 minutes and door time to 10 minutes; increase the costs of windows from $10 to $12 and doors from $6 to $7.50. Since Ballard is giving customers faster service it will increase its prices from $17 to $20 for windows and from $10 to $12 for doors.
What is the expected daily revenue with and without doors, respectively, assuming average sales units are used and it hires a part-time employee if doors are sold?
A) $230 and $170
B) $260 and $200
C) $360 and $255
D) $315 and $300
E) $400 and $340
25) The demand for Ballard’s Glass Company’s products varies, ranging from 10 to 20 windows a day with an average of 15. John Ballard works eight hours a day, five days a week. Each order is one window, and each window takes 26 minutes to install. The company plans to add doors to its product line and anticipates that they will sell an average of 5 doors per day. Each door takes 12 minutes to install.
Ballard is concerned with the increased waiting time if it adds doors. To offset this concern it can hire a part-time employee. This will decrease windows time to 20 minutes and doors to 10 minutes. However, this will increase the costs of windows from $10 to $12 and doors from $6 to $7.50. Since he is giving customers faster service he will increase his prices from $17 to $20 for windows and from $10 to $12 for doors.
What is the daily contribution margin if he sells both windows and doors and the part-time person is hired?
A) $185.00
B) $142.50
C) $140.00
D) $97.50
E) $72.00
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