41)
A capacity alternative has an initial cost of $50,000 and cash flow of $20,000
for each of the next four years. If the cost of capital is 5 percent, the net
present value of this investment is approximately

A)
$20,920

B)
$26,160

C)
$49,840

D)
$70,920

E)
$106,990

42)
The theory of constraints has its origins in

A)
linear programming theory

B)
the theory of economies of scale

C)
material requirements planning

D)
the theory of finite capacity planning

E)
Goldratt and Cox’s book, The Goal: A Process of Ongoing Improvement

43)
Which of the following techniques is not a technique for dealing with a
bottleneck?

A)
Schedule throughput to match capacity of the bottleneck.

B)
Increase capacity of the constraint.

C)
Have cross-trained employees available to keep the constraint at full
operation.

D)
Develop alternate routings.

E)
All are tools for dealing with bottlenecks.

44)
In “drum, buffer, rope,” what provides the schedule, i.e. the pace of
production?

A)
drum

B)
buffer

C)
rope

D)
all three of the above in combination

E)
none of the above

Short
Answer

1)
In “drum, buffer, rope,” the __________ acts like kanban signals.

2)
__________ is the amount a facility can hold, store, receive, or produce in a
period of time.

3)
__________ is actual output as a percent of design capacity.

4)
__________ is actual output as a percent of effective capacity.

5)
In the service sector, scheduling customers is __________, and scheduling the
workforce is __________.

6)
The capacity planning strategy that delays adding capacity until capacity is
below demand, then adds a capacity increment so that capacity is above demand,
is said to__________ demand.

7)
__________ analysis finds the point at which costs equals revenues.

8)
__________ cost is the cost that continues even if no units are produced.

9)
Multiproduct break-even analysis calculates the __________ of each product,
__________ it in proportion to each product’s share of total sales.

10)
__________ is a means of determining the discounted value of a series of future
cash receipts.