The King's College Capstone Simulation Quiz #3 Capacity

10 Questions | By Dfotopulos | Last updated: Mar 21, 2022 | Total Attempts: 125

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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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