A Well-Educated Operations Manager Used the Capacity Requirements Equation to Determine

question 44

Multiple Choice

A well-educated operations manager used the capacity requirements equation to determine the number of crackerbox welders to purchase for the shop, given the standard time per unit, hours available per machine, among other relevant parameters. He studied the answer, 12.6, and concluded that:

• A) he had made a mistake, since it isn't possible to purchase a fractional welder.
• B) he needed to decrease his desired capacity cushion to bring him up to an even thirteen welders.
• C) he should buy twelve welders and spend 50% more time per part to reach the 12.6 figure.
• D) he should buy twelve welders and use all of them at 5% overtime to achieve the necessary output.

---

Definitions:

Hindsight Bias

Hindsight bias refers to the common tendency to believe, after an event has occurred, that one would have predicted or expected the outcome.

Interpretation of the Past

The process of understanding and explaining historical events, contributions, or phenomena.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, often referred to as the "I-knew-it-all-along effect."

"I Knew It All Along"

The phenomenon where people believe they predicted an outcome that could not have been reasonably foreseen; also known as hindsight bias.