AN 300 Exam 2 Questions with Correct Answers 100

AN 300 Exam 2 Questions with Correct Answers 100% Verified 2024/2025 The maximum output rate that can be achieved by a facility under ideal conditions is: - Correct Answer Design Capacity Solving a decision tree that involves maximizing profit includes all of the following EXCEPT: - Correct Answer Calculating from left to right Location decisions are particularly important because: - Correct Answer They can have a large impact on operating costs and revenues Which of the following is a distance-based method for location alternatives evaluation? - Correct Answer Center of gravity approach Which of the following would imply that data observations are widely spread out around the mean? - Correct Answer Large range and large standard deviation For which of the following would a control chart for attributes not be appropriate? - Correct Answer Length of metal rods Suppose that you want to measure the percentage of candles that are cut longer than 9 inches.Which control chart would be appropriate? - Correct Answer Proportion chart Capacity Planning: - Correct Answer The process of establishing the output rate (i.e., capacity) that can be achieved by a facility Facility - Correct Answer Any establishment for manufacturing and/or service activities, e.g., an entire organization, a department, a machine, etc.Over-planning/too much capacity - Correct Answer Idle resources, overstock, wastes Under-planning/not enough capacity - Correct Answer Unmet demand, lost sales, unhappy customers 1 / 2

Input measure - Correct Answer Labor hours, floor space, etc Output measure - Correct Answer Daily revenue, monthly sales volume Design capacity - Correct Answer Maximum output rate under ideal conditions Effective capacity - Correct Answer Maximum output rate under normal conditions Drawing a tree - Correct Answer - Draw from left to right

• Use square nodes to indicate decision points
• Label the decision branches
• Use circular nodes to indicate chance events
• Label the event branches with its probability of occurrence
• Write the outcome for each alternative

Solving a tree - Correct Answer -Work from right to left

• Compute the expected value at each circular node
• Choose the alternative with the highest expected value

Facility Location Decision - Correct Answer Determining the best geographical location for a company's facility (which can be an entire organization, a division, or any form of establishment for manufacturing and/or service activities) Long-term impacts - Correct Answer -Requires long-term commitments in buildings and facilities -Requires sizable financial investment in setting up a new facility Competitive Imperatives - Correct Answer -Time-based competition if located near customers and/or suppliers

• Lowering shipping costs if located near customers and/or suppliers.
• Lowering wage costs if located near the appropriate labor pool.
• Adequate supply of skilled labor if located near the appropriate labor pool.
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