# Liberty BUSI 411 Exam 2 Answers Complete Solutions

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### Question 1

3 out of 3 points

Which of the following is a key question in capacity planning?

### Question 2

3 out of 3 points

Utilization is defined as the ratio of:

### Question 3

3 out of 3 points

Given the following information, what would utilization be? Effective capacity = 20 units per day Design capacity = 60 units per day Actual output = 15 units per day

### Question 6

3 out of 3 points

A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load per meter moved. An analyst has prepared the following distances and flow matrices:

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## STATUS

Distances (meters)

From/To

I

II

III

I

–

10

20

II

–

10

III

–

Flows (loads per week)

From/To

X

Y

Z

X

–

60

90

Y

40

–

160

Z

110

140

–

What is the distance (in meters) from area III to area I in this new facility?

### Question 7

3 out of 3 points

QRS Corp. is designing a product layout for a new product. They plan to use this production line 10 hours a day in order to meet forecasted demand of 900 units per day. The following table describes the tasks necessary to produce this product:

Task

Time(secs)

Immediate Predecessor

a

34

none

b

20

a

c

10

b

d

16

b

e

10

c

f

24

d,e

g

38

f

For output to equal forecasted demand, what will be the efficiency of the production line that uses the least number of workstations?

· Question 16

3 out of 3 points

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows:

Location

FC (annual)

VC (per unit)

Atlanta

$

80,000

$

20

Phoenix

$

140,000

$

16

What would the total annual costs be for the Phoenix location with an annual output of 10,000 units?

### Question 17

3 out of 3 points

Nearness to raw materials would be most important to a:

### Question 18

3 out of 3 points

Location choice I has monthly fixed costs of $100,000 and per-unit variable costs of $10. What would its total cost be at a monthly volume of 250 units?

### Question 19

3 out of 3 points

A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network.

Location

(x, y)

A

2, 3

B

3, 7

C

5, 5

D

7, 3

E

8, 7

If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?

### Question 20

3 out of 3 points

The center of gravity method is used to _______ travel time or shipping costs.

· Question 24

3 out of 3 points

Web-based, retail businesses should be located near the customer to reduce their long distance phone charges.

### Question 25

3 out of 3 points

The fact that most types of firms are located in every section of the country suggests that in many cases, location decisions are not overly important; one location typically is as good as another.