The King's College Capstone Simulation Quiz #3 Capacity

10 Questions | Total Attempts: 125

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College Quizzes & Trivia

This is quiz #3 testing students on their understanding of Capacity and Margin Potential taken directly from their situation analysis.


Questions and Answers
  • 1. 
    If you reduce MTBF from 21000 to 14000 (the low end of the range) you save $2.80  in direct materials per unit      
    • A. 

      True

    • B. 

      False

  • 2. 
    If you increase MTBF from 17000 to 23000 (high end of the range) how much will it cost you per unit?
    • A. 

      $1.80

    • B. 

      $2.10

  • 3. 
    How much do you save in direct labor per unit if you increase automation from 0 to 1?  
    • A. 

      20%

    • B. 

      $1.01 Per Unit

  • 4. 
    If a production line has a capacity to produce 1,000,000 units and you change the automation from 1 to 3, what is the total cost?    
    • A. 

      $2,000,000

    • B. 

      $8,000,000

  • 5. 
    Changes in capacity and automation happen immediately.     
    • A. 

      True

    • B. 

      False

  • 6. 
    If you add 800,000 units of capacity at an automation rating of 3, what will it cost you?  
    • A. 

      $14,400,000

    • B. 

      $7,600,000

  • 7. 
    If you reduce automation, you will incur etooling costs.
    • A. 

      True

    • B. 

      False

  • 8. 
    Selling capacity happens immediately. Buying capacity takes a year.
    • A. 

      True

    • B. 

      False

  • 9. 
    Each new unit of capacity costs $5 per unit for floor space and  $4 per unit of automation.
    • A. 

      True

    • B. 

      False; $6 per unit of floor space

  • 10. 
    The market is growing at 10% per year your unit sales are growing at 20% per year. What is happening to your market share?
    • A. 

      Your market share will increase versus your competition because marketshare is determined (in the simulation) by unit sales

    • B. 

      Your market share will be determined by dollar sales we can't predict what will happen to marketshare.

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