Question :
61)
A company has identified the following data:
order waiting time8 minutes
order : 1196150
61)
A company has identified the following data:
order waiting time8 minutes
order manufacturing lead time72 minutes
order receipt time7 minutes
order manufacturing cycle time72 minutes
What is the order manufacturing time? 61)
______ A)
9 minutes B)
55 minutes C)
15 minutes D)
79 minutes E)
64 minutes
62)
A company has identified the following data:
order waiting time8 minutes
order manufacturing lead time72 minutes
order receipt time7 minutes
order manufacturing cycle time72 minutes
What is the order delivery time? 62)
______ A)
15 minutes B)
9 minutes C)
79 minutes D)
64 minutes E)
55 minutes
63)
Quick Shop Printing has two work stations, cutting and pasting. The cutting station is limited by the speed of operating the cutting machine. Pasting is limited by the speed of the workers. Pasting normally waits on work from cutting. Each department works an eight-hour day. If cutting begins work two hours earlier than pasting each day, the two departments generally finish their work at about the same time. Not only does this eliminate the bottleneck, but it increases finished units produced each day by 80 units. All units produced can be sold even though the change increases inventory stock by 10 percent from 200 units. The cost of operating the cutting department two more hours each day is $800. The contribution margin of the finished products is $3 each. Inventory carrying costs are $0.20 per unit per day.
What is the change in the daily contribution margin if the change is made? 63)
______ A)
$(564) B)
$400 C)
$(396) D)
$396 E)
$475
64)
Which of the following statements related to the theory of constraints is/are true? 64)
______ A)
The theory of constraints focuses on process-costing when an organization is faced with bottlenecks. B)
Throughput contribution equals sales plus direct materials, and the theory of constraints focuses on revenue and cost management when an organization is faced with bottlenecks. C)
Throughput contribution equals sales plus direct manufacturing costs. D)
Throughput contribution equals sales plus direct materials. E)
Sales less direct materials costs equals throughput contribution.
65)
Increasing throughput contribution and managing bottlenecks includes all of the following EXCEPT 65)
______ A)
recognize that a bottleneck determines throughput contribution of the entire process related to the bottleneck. B)
short-run time horizons. C)
a cost-benefit analysis of alternative actions to increase bottleneck capacity. D)
a cost-benefit analysis of alternative actions to increase bottleneck efficiency. E)
work stations without large quantities of jobs to be worked on are ignored.
66)
Producing more non-bottleneck output 66)
______ A)
allows for the maximization of overall contribution. B)
creates more inventory but does not increase throughput contribution. C)
creates less pressure for the bottleneck work stations. D)
creates more inventory and increases throughput contribution. E)
allows for the maximization of overall shop effectiveness.
67)
Quick Shop Printing has two work stations, cutting and pasting. The cutting station is limited by the speed of operating the cutting machine. Pasting is limited by the speed of the workers. Pasting normally waits on work from cutting. Each department works an eight-hour day. If cutting begins work two hours earlier than pasting each day, the two departments generally finish their work at about the same time. Not only does this eliminate the bottleneck, but it increases finished units produced each day by 80 units. All units produced can be sold. The cost of operating the cutting department two more hours each day is $800. The contribution margin of the finished products is $3 each. Inventory carrying costs are $0.20 per unit per day.
What is the daily capacity of the pasting workstation? 67)
______ A)
820 B)
800 C)
440 D)
320 E)
400
68)
Which of the following is NOT a key step in managing bottleneck resources? 68)
______ A)
keep the bottleneck operation busy and subordinate all nonbottleneck resources to the bottleneck resource B)
search and find the bottleneck resource by identifying resources with large quantities of inventory waiting to be worked on C)
reduces the number of employees who work in the bottleneck area D)
recognize that the bottleneck resource determines throughput contribution of the plant as a whole E)
take action to increase bottleneck efficiency and capacity
69)
Which of the following sets of sentences has two statements which are true? 69)
______ A)
The cost of poor quality at a nonbottleneck operation is the cost of materials wasted. Increasing idle time at the bottleneck operation helps relieve the delays at the nonbottleneck operations. B)
Throughput contribution increases only by increasing bottleneck output. Throughput contribution is not increased when nonbottleneck output is increased. C)
The cost of poor quality at a bottleneck operation is the cost of materials wasted. Increasing idle time at the nonbottleneck operation helps relieve the delays at the bottleneck operations. D)
Throughput contribution increases only by decreasing bottleneck output. Throughput contribution is not increased when nonbottleneck output is increased.. E)
Poor quality is more costly at a bottleneck work station than it is at a nonbottleneck work station. The cost of poor quality at a bottleneck work station is the cost of materials in waiting.
70)
Which of the following statements is TRUE? 70)
______ A)
Nonbottleneck operations should be refined for high efficiency before starting on bottleneck improvement because nonbottleneck operations are generally easier to correct and improve. B)
The elimination of defects always increases productivity. C)
Throughput contribution is not increased when nonbottleneck output is increased. D)
The elimination of defects always decreases revenues. E)
Quality and time are seldom related in service industries.
