1) If a plant has an effective capacity of 6,500 and an efficiency of 88%, what is the actual (planned) output?

2) Material delays have routinely limited production of household sinks to 400 units per day. If the plant efficiency is 80%, what is the effective capacity?

3) Southeastern Oklahoma State University's business program has the facilities and faculty to handle an enrollment of 2,000 new students per semester. However, in an effort to limit class sizes to a "reasonable" level (under 200, generally), Southeastern's dean, Holly Lutze, placed a ceiling on enrollment of 1,500 new students. Although there was ample demand for business courses last semester, conflicting schedules allowed only 1,450 new students to take business courses. What are the utilization and efficiency of this system?

4) The three-station work cell illustrated has a product that must go through one of the two machines at station 1 (they are parallel) before proceeding to station 2.

Capacity: 20 units/hr

Station 3

Capacity: 20 units/hr

a) What is the bottleneck time of the system?

b) What is the bottleneck station of this work cell?

c) What is the throughput time?

d) If the firm operates 10 hours per day, 5 days per week, what is the weekly capacity of this work cell?

5) A production process at Kenneth Day Manufacturing. The drilling operation occurs separately from, and simultaneously with, the sawing and sanding operations. A product needs to go through only one of the three assembly operations (the operations are in parallel).

a) Which operation is the bottleneck?

b) What is the bottleneck time?

c) What is the throughput time of the overall system?

d) If the firm operates 8 hours per day, 20 days per month, what is the monthly capacity of the manufacturing process?

6) James Lawson's Bed and Breakfast, in a small historic Mississippi town, must decide how to subdivide (remodel) the large old home that will become its inn. There are three alternatives: Option A would modernize all baths and combine rooms, leaving the inn with four suites, each suitable for two to four adults. Option B would modernize only the second floor; the results would be six suites, four for two to four adults, two for two adults only. Option C (the status quo option) leaves all walls intact. In this case, there are eight rooms available, but only two are suitable for four adults, and four rooms will not have private baths. Below are the details of profit and demand patterns that will accompany each option:

Which option has the highest expected monetary value