Question 1

A wait- and- see strategy in regard to capacity is best characterized by

Accepted Answer

A)  reducing the risks of lost sales due to capacity constraints. 
B)  making large, infrequent jumps in capacity expansions. 
C)  reducing the risks of over optimistic demand forecasts. 
D)  using capacity as a competitive weapon in order to compete on cost. 
A)  reducing the risks of lost sales due to capacity constraints. 
B)  making large, infrequent jumps in capacity expansions. 
C)  reducing the risks of over optimistic demand forecasts. 
D)  using capacity as a competitive weapon in order to compete on cost.

Question 2

Utilization is calculated as the ratio of Capacity / Actual output.

Accepted Answer

A) True 
 B)False

Question 3

Explain the cost and time implications that inventory has for the purposes of process choice.

Accepted Answer

Inventory has two critical implications:

Question 4

The lock box department at Bank 21 handles the processing of monthly loan payments to the bank, monthly and quarterly premium payments to a local insurance company, and bill payments for 85 of the bank's largest commercial customers. The payments are processed by machine operators, with one operator per machine. An operator can process one payment in 0.25 minute. Setup times are negligible in this situation. A capacity cushion of 20 percent is needed for the operation. The average monthly (not annual) volume of payments processed through the department currently is 400,000. However, it is expected to increase by 20 percent. The department operates eight hours per shift, two shifts per day, 260 days per year. How many machines (not operators) are needed to satisfy the new total processing volume? (Round up to the next whole integer.)

Accepted Answer

A)  less than 7 
B)  7 
C)  8 
D)  more than 8 
A)  less than 7 
B)  7 
C)  8 
D)  more than 8

Question 5

Aggregate stock is any stock of items used to support the production of goods and services or satisfy customer demand.

Accepted Answer

A) True 
 B)False

Question 6

______ is introduced by chance and results from small changes or differences in equipment operations, people's behaviour, or environmental conditions.

Accepted Answer

The answer of ______ is introduced by chance and results...

Question 7

Effective management of capacity includes only consideration of short- term challenges.

Accepted Answer

A) True 
 B)False

Question 8

Setup time is the time required to change a machine from making one product or service to making another.

Accepted Answer

A) True 
 B)False

Question 9

What is the capacity cushion and how is it significant for managing processes?

Accepted Answer

Capacity cushion is the amount

Question 10

Table 5.2
High Tech, Inc. is producing two types of products: A and B. Both are produced at the same sawing operation. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and optimistic). The demand forecasts, batch sizes (units/batch), processing times (hr/unit), and setup times (hr/batch) follow.

The sawing machines operate on two 8-hour shifts, 5 days per week, and 50 weeks per year. The manager wants to maintain a 10 percent capacity cushion.
-Using the information from Table 5.2, how many hours of capacity can the company expect from each of its sawing machines?

Accepted Answer

A)  less than 3500 hours 
B)  more than 3500 hours but less than 3700 hours 
C)  more than 3700 hours but less than 3900 hours 
D)  more than 3900 hours 
A)  less than 3500 hours 
B)  more than 3500 hours but less than 3700 hours 
C)  more than 3700 hours but less than 3900 hours 
D)  more than 3900 hours

Question 11

Little's Law is the mathematical relationship than computes the average throughput time for items based on ______  inventory and the actual output rate.

Accepted Answer

The answer of Little's Law is the mathematical relationship than...

Question 12

A bottleneck is an operation that has the highest effective capacity of any operation in the process and, thus, boosts the system's output.

Accepted Answer

A) True 
 B)False

Question 13

Little's Law is a mathematical expression for relating

Accepted Answer

A)  the average throughput time to work- in- process (WIP) inventory and the actual output rate. 
B)  the utilization of a process to actual output and capacity. 
C)  the utilization of a process to work- in- process (WIP) inventory and the actual output rate. 
D)  the average throughput time for a process to actual output and capacity. 
A)  the average throughput time to work- in- process (WIP) inventory and the actual output rate. 
B)  the utilization of a process to actual output and capacity. 
C)  the utilization of a process to work- in- process (WIP) inventory and the actual output rate. 
D)  the average throughput time for a process to actual output and capacity.

Question 14

Typically, a larger capacity cushion is required in project processes with high variability than in line or continuous flow processes with relatively low variability.

Accepted Answer

A) True 
 B)False

Question 15

The difference of 100 % - Utilization (%) provides a measure the capacity cushion.

Accepted Answer

A) True 
 B)False

Question 16

More complex waiting- line problems must be analyzed with _______ .

Accepted Answer

The answer of More complex waiting- line problems must be...

Question 17

A capacity cushion is the amount of inventory that a firm maintains to handle sudden increases in demand or temporary loss of production capacity.

Accepted Answer

A) True 
 B)False

Question 18

The ______ is to do nothing and simply lose orders from any demand that exceeds current capacity.

Accepted Answer

The answer of The ______ is to do nothing and...

Question 19

Which one of the following statements about capacity is best?

Accepted Answer

A)  Companies with high capital costs tend to have large- capacity cushions. 
B)  Companies that have considerable customization tend to have larger- capacity cushions. 
C)  Companies with flexible flow processes tend to have small- capacity cushions. 
D)  Constant demand rates require larger- capacity cushions. 
A)  Companies with high capital costs tend to have large- capacity cushions. 
B)  Companies that have considerable customization tend to have larger- capacity cushions. 
C)  Companies with flexible flow processes tend to have small- capacity cushions. 
D)  Constant demand rates require larger- capacity cushions.

Question 20

A blocked operation is an operation that runs out of work to process.

Accepted Answer

A) True 
 B)False

A wait- and- see strategy in regard to capacity is best characterized by

Utilization is calculated as the ratio of Capacity / Actual output.

Explain the cost and time implications that inventory has for the purposes of process choice.

Aggregate stock is any stock of items used to support the production of goods and services or satisfy customer demand.

______ is introduced by chance and results from small changes or differences in equipment operations, people's behaviour, or environmental conditions.

Effective management of capacity includes only consideration of short- term challenges.

Setup time is the time required to change a machine from making one product or service to making another.

What is the capacity cushion and how is it significant for managing processes?

Little's Law is the mathematical relationship than computes the average throughput time for items based on ______ inventory and the actual output rate.

A bottleneck is an operation that has the highest effective capacity of any operation in the process and, thus, boosts the system's output.

Little's Law is a mathematical expression for relating

Typically, a larger capacity cushion is required in project processes with high variability than in line or continuous flow processes with relatively low variability.

The difference of 100 % - Utilization (%) provides a measure the capacity cushion.

More complex waiting- line problems must be analyzed with _______ .

A capacity cushion is the amount of inventory that a firm maintains to handle sudden increases in demand or temporary loss of production capacity.

The ______ is to do nothing and simply lose orders from any demand that exceeds current capacity.

Which one of the following statements about capacity is best?

A blocked operation is an operation that runs out of work to process.

Creating Customer Value

Supply Chain Management

Supply Chain Sustainability and Humanitarian Logistics

Process Configuration

Waiting Lines

Inventory Management

Quality and Process Improvement

Lean Systems

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Resource Planning

Filters

Exam 5: Capacity

A wait- and- see strategy in regard to capacity is best characterized by

Utilization is calculated as the ratio of Capacity / Actual output.

Explain the cost and time implications that inventory has for the purposes of process choice.

Aggregate stock is any stock of items used to support the production of goods and services or satisfy customer demand.

______ is introduced by chance and results from small changes or differences in equipment operations, people's behaviour, or environmental conditions.

Effective management of capacity includes only consideration of short- term challenges.

Setup time is the time required to change a machine from making one product or service to making another.

What is the capacity cushion and how is it significant for managing processes?

Little's Law is the mathematical relationship than computes the average throughput time for items based on ______ inventory and the actual output rate.

A bottleneck is an operation that has the highest effective capacity of any operation in the process and, thus, boosts the system's output.

Little's Law is a mathematical expression for relating

Typically, a larger capacity cushion is required in project processes with high variability than in line or continuous flow processes with relatively low variability.

The difference of 100 % - Utilization (%) provides a measure the capacity cushion.

More complex waiting- line problems must be analyzed with _______ .

A capacity cushion is the amount of inventory that a firm maintains to handle sudden increases in demand or temporary loss of production capacity.

The ______ is to do nothing and simply lose orders from any demand that exceeds current capacity.

Which one of the following statements about capacity is best?

A blocked operation is an operation that runs out of work to process.

Creating Customer Value

Supply Chain Management

Supply Chain Sustainability and Humanitarian Logistics

Process Configuration

Waiting Lines

Inventory Management

Quality and Process Improvement

Lean Systems

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Resource Planning

Filters