Perform a Capacity Analysis of the Process Given Below A) Less Than 500 Minutes
B) Equal to or Greater

question 62

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

-A hospital lab is used for three types of cancer tests, A, B, and C. The time per setup, processing time, and batch size (in units) is given below. Using the information, determine the total demand in minutes for this lab. $\begin{array}{|c|c|c|c|}\hline \text { Job Type } & \begin{array}{c}\text { SETUP TIME } \\\text { (MINUTES) }\end{array} & \begin{array}{c}\text { PROCESSING } \\\text { TIME } \\\text { (MINUTES) }\end{array} & \begin{array}{c}\text { BATCH (JOB) } \\\text { SIZE (UNITS) }\end{array} \\\hline \text { A } & 25 & 4.5 & 50 \\\hline \text { B } & 60 & 6.0 & 80 \\\hline \text { C } & 30 & 5.0 & 40 \\\hline\end{array}$

• A) Less than 500 minutes
• B) Equal to or greater than 500 but less than 1000 minutes
• C) Equal to or greater than 1000 but less than 2000 minutes
• D) Greater than 2000 minutes

---

Definitions:

T-bill

Short-term government securities that mature in a year or less, offering investors a safe and liquid means of investment.

Capital Allocation Line

A line on a graph that represents the risk-return trade-off of investments, showing the rates of return for efficient portfolios depending on the risk-free rate and the market risk.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points from their mean, used in finance to gauge the volatility of investment returns.

Expected Rate

The anticipated return on an investment, taking into account various factors like market trends, risk level, and past performance.