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OSCM 373 Exam 2 Review with latest update correctly answered
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OSCM 373 Exam 2 Review with latest update correctly answered
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OSCM 373 Exam 2 ReviewA machine has a design capacity of 5,000 and an effective capacity of 4.000 units per year. If the
expected output is 3,000 per year, what would be the Utilization? - correct answer ✔✔Utilization =
Actual Output / Design Capacity
= 3,,000 = 60%
A process has a fixed cost of $20,000, variable costs per unit of $10 and outputs can be sold for $15 per
unit. What is the Break-Even Point? - correct answer ✔✔Break-Even Point = Fixed Cost / (Price - Variable
Cost)
= 20,000 / (15-10) = 4,000 units
Plan A has a fixed cost of $10 and a variable cost of $0.05 per minute. Plan B has a fixed cost of $25 and
no variable.
What is the point of indifference between the two plans? - correct answer ✔✔Point of indifference is the
level of volume in which total cost is the same.
25 - 10 = 15
=> 15/0.05 = 300 minutes
Using the Shortest Time Sequencing Rule and Assuming Start Time is 0, when is Job C expected to end?
Job Duration Due
A35
B78
C 5 10
D 9 12
E 6 6 - correct answer ✔✔Sequence based on Shortest Time Sequencing:
A-C-E-B-D
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