Operations Management
Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Textbook Question
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Chapter 3, Problem 7CQ

What is the maximum utilization a resource can achieve?

  1. a. A value equal to the demand
  2. b. A value equal to the capacity
  3. c. There is no maximum utilization.
  4. d. 1.00
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In a job shop, effective capacity is only 79 percent of design capacity, and actual output is 53 percent of effective output. What design capacity would be needed to achieve an actual output of 11 jobs per week? What is its effective capacity? a. The Design Capacity needed to achieve the required actual job outputs Blank 1 (round to whole number) b. The Effective Capacity needed to achieve the required actual job outputs = Blank 2 (round to whole number) Blank 1 Add your answer
A department works one 8-hour shift, 250 days a year, and has these figures for usage of amachine that is currently being considered:ProductAnnualDemandStandard ProcessingTime per Unit (hr)Processing TimeNeeded (hr)1 400 5.0 2,0002 300 8.0 2,4003 700 2.0 1,4005,800Units of capacity needed = Processing time needed ___________________________ Processing time capacity per unit (5–3)Working one 8-hour shift 250 days a year provides an annual capacity of 8 × 250 =2,000 hours per year. Consequently, three of these machines would be needed to handle therequired volume:5,800 hours __________________ 2,000
A lab provides ultrasound service to patients. The service process consists of two steps: 1. Registration. Performed by a receptionist (Salary rate = $25/hr; Process time = 6 minutes/patient) 2. Ultrasound scan. Performed by a technician (Salary rate = $30/hr; Process time = 20 minutes/patient) Note that the ultrasound images need to be read by radiologists, but we assume that they have an ample capacity and thus will not model the role in the service process. Currently, the lab has 2 receptionists and 3 technicians. The manager anticipates demand to grow to 14 patients/hr in the near future. Thus, he plans to hire more receptionists and/or technicians to increase the service capacity to at least 14 patients/hr. What would be the extra payroll cost (in dollars per hr)?

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