Page 615 - Introduction to Business

CHAPTER 16 Managing Business Operations 589

b. $55,000 instead of six wheels, in Exhibit 16.13 the
c. $50,000 number of requested wheels for week 7
d. $62,000 would change to
e. $41,000 a. 150.
7. A product-oriented layout is one where b. 8.
a. the product stays in one place, while the c. 900.
workers, materials, and equipment come d. 400.
to the product for manufacturing or e. 137.
service operations. 10. Consider the control chart in Exhibit 16.16.
b. the different activity centers are We know that the system went out of
organized by function. control between 10 and 11 A.M. because
c. the product stays in one place. a. the average weights for the samples
d. production resources are dedicated to taken at 8, 9, and 11 A.M. were all
products. different from the design specification of
e. the different activities are organized by 48 ounces per box.
cost center. b. the average weights for the samples
8. Consider the production rate example. If taken at 8, 9, 10, and 11 A.M. are all
the demand in the second month changed different.
from 200 to 250 units and a level strategy c. the average weight for the first sample at
was used, in Exhibit 16.10 the regular time 8 A.M. is less than 48 ounces, and the
production in the second month would average weight for the last sample at
change to 11 A.M. is more than 48 ounces.
a. 250 units. d. the average weights for the samples
b. 50 units. taken at 10 and 11 A.M. are different.
c. 100 units. e. the average weights for the samples
d. 10 workers. taken at 8, 9, and 10 A.M. are all within
e. It would not change. the lower and upper control limits, and
the average weight for the sample taken
9. Consider the material requirements at 11 A.M. is higher than the upper
example. If the bill of material for the chair control limit of 48.3 ounces.
were redesigned to include eight wheels

self-test
ACE Want more questions? Visit the student website at http://college.hmco.com/business/student/ (select Gaspar,
Introduction to Business) and take the ACE quizzes for more practice.

Copyright 2010 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.