Perform a Capacity Analysis of the Process Given Below

question 20

Multiple Choice

Perform a capacity analysis of the process given below. The numbers in parenthesis (#) are the time in minutes to complete one unit of work. Demand on the process averages 20 units per hour and each unit must be worked on by all four stages. Administrative clerk(s) do Stage A work. The assistant manager(s) do Stages C and D work and are cross-trained to do both jobs. The coding specialist(s) do Stage B work.
SHAPE \* MERGEFORMAT

-The process (throughput) capacity in units per hour for the four stage process, A to D, assuming 2 administrative clerks, 3 coding specialists, and 3 assistant managers on duty is _____.

• A) less than 10 units per hour
• B) more than 10 units but less than or equal to 20 units
• C) more than 20 units but less than or equal to 30 units
• D) more than 30 units but less than or equal to 40 units

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Definitions:

Labor Supply Curve

A visual diagram that illustrates the connection between the amount of wages and the volume of labor that employees are prepared to offer.

Income Effect

Change in consumption of a good resulting from an increase in purchasing power, with relative prices held constant.

Substitution Effect

Change in consumption of a good associated with a change in its price, with the level of utility held constant.

Perfectly Competitive

A market structure characterized by a large number of small sellers and buyers, homogeneous products, and freedom of entry and exit.