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Operations Management (MGMT 3060 ) Topic 6 Quiz

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John Marsh
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California State University Los Angeles

Operations Management (MGMT 3060 )

which of the following capacity adjustment options applies to​ intermediate-range planning?

Southeastern Oklahoma State University’s business program has the facilities and faculty to handle an enrollment of new students per semester. However, in
an effort to limit class sizes to a “reasonable” level (under 200, generally), Southeastern’s dean, Holly Lutze, placed a ceiling on enrollment of new students.
Although there was ample demand for business courses last semester, conflicting schedules allowed only new students to take business courses.
2,100
1,800
1,450
The utilization rate for Southeastern = 69.0 % (enter your response as a percentage rounded to one decimal place).
The efficiency rate for Southeastern = 80.6 % (enter your response as a percentage rounded to one decimal place).

Weiss Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed
costs are for proposal A and for proposal B. In addition to the proposed fixed costs from the two vendors, Weiss’s management anticipates that they
will have to spend for installations to be completed. The variable cost is for A and for B. The revenue generated by each unit is .
$55,000 $70,000
$12,000 $14.00 $10.00 $22.00
a) The breakeven
point in dollars for the proposal by Vendor A = $ 184,250 (round your response to the nearest whole number).
b) The breakeven
point in dollars for the proposal by Vendor B = $ 150,333 (round your response to the nearest whole number).

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Operations Management (MGMT 3060 ) Topic 6 Quiz

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