Question 1

Nonbottleneck management principles differ from bottleneck management principles because according to nonbottleneck management principles, _____.

Accepted Answer

A)  idle time is acceptable if there is no work to do 
B)  an hour lost at a nonbottleneck resource is an hour lost for the entire process or factory output 
C)  large order sizes should be used to minimize setup time and maximize resource utilization 
D)  the input should always exceed the capacity 
A)  idle time is acceptable if there is no work to do 
B)  an hour lost at a nonbottleneck resource is an hour lost for the entire process or factory output 
C)  large order sizes should be used to minimize setup time and maximize resource utilization 
D)  the input should always exceed the capacity

Question 2

A__________consists of dynamic methods to forecast demand, allocate perishable assets across market segments, decide when to overbook and by how much, and determine what price to charge different customer classes.

Accepted Answer

A)  focused factory 
B)  work order 
C)  revenue management system 
D)  nonbottleneck work activity 
A)  focused factory 
B)  work order 
C)  revenue management system 
D)  nonbottleneck work activity

Question 3

A__________matches capacity additions with demand as closely as possible.

Accepted Answer

A)  capacity lag strategy 
B)  capacity straddle strategy 
C)  capacity lead strategy 
D)  capacity reduction strategy 
A)  capacity lag strategy 
B)  capacity straddle strategy 
C)  capacity lead strategy 
D)  capacity reduction strategy

Question 4

Unlike a focused factory, an unfocused factory is characterized by:

Accepted Answer

A)  a few key products. 
B)  particular market segments. 
C)  identical people skills. 
D)  dissimilar product lines. 
A)  a few key products. 
B)  particular market segments. 
C)  identical people skills. 
D)  dissimilar product lines.

Question 5

Magnira Hotels is a leading chain of hotels. Its managers reserve 30% of the rooms available only to the members of its club. They also provide the rooms at subsidized prices to these members. In this scenario, which of the following components of revenue management system is most likely used by Magnira Hotels?

Accepted Answer

A)  Investment 
B)  Allocation 
C)  Capacity expansion 
D)  Capacity sharing 
A)  Investment 
B)  Allocation 
C)  Capacity expansion 
D)  Capacity sharing

Question 6

The traditional operations management definition of throughput is:

Accepted Answer

A)  the average number of goods or services completed per time period by a process. 
B)  anything in an organization that limits it from moving toward its goal. 
C)  associated with the capacity of a resource such as a machine, employee, or workstation. 
D)  a physical activity in which idle capacity exists. 
A)  the average number of goods or services completed per time period by a process. 
B)  anything in an organization that limits it from moving toward its goal. 
C)  associated with the capacity of a resource such as a machine, employee, or workstation. 
D)  a physical activity in which idle capacity exists.

Question 7

In a revenue management system, forecasting, allocation, overbooking, and pricing must work in unison if the objective is to:

Accepted Answer

A)  manage a nonperishable asset. 
B)  meet the future demand of goods and services. 
C)  determine the single price that needs to be charged to all customers. 
D)  maximize the revenue generated by a perishable asset. 
A)  manage a nonperishable asset. 
B)  meet the future demand of goods and services. 
C)  determine the single price that needs to be charged to all customers. 
D)  maximize the revenue generated by a perishable asset.

Question 8

The earliest revenue management systems focused solely on__________.

Accepted Answer

A)  forecasting 
B)  overbooking 
C)  allocation 
D)  pricing 
A)  forecasting 
B)  overbooking 
C)  allocation 
D)  pricing

Question 9

Greyon Spinning Mills Inc. owns 600 spinning machines. Out of these, only 500 are used in a given year. Given this information, the utilization of spinning machines at Greyon Spinning Mills Inc. is _____.

Accepted Answer

A)  0.75 
B)  0.83 
C)  1 
D)  1.2 
A)  0.75 
B)  0.83 
C)  1 
D)  1.2

Question 10

Avexim Pharmaceutical Laboratories is an international group of companies that manufactures an antiepileptic prescription drug in huge volumes. The setup time for manufacturing the drug is 75 minutes, the processing time is 8 minutes, and the order size is 700 units. In this case, which of the following is the total time required to meet the given production volume

Accepted Answer

A)  968 minutes 
B)  1300 minutes 
C)  4275 minutes 
D)  5675 minutes 
A)  968 minutes 
B)  1300 minutes 
C)  4275 minutes 
D)  5675 minutes

Question 11

Scorla Corp. is an apparel manufacturing factory. Its average resource utilization per year is calculated as 70%. The average safety capacity of Scorla Corp. is _____.

Accepted Answer

A)  20% 
B)  30% 
C)  40% 
D)  50% 
A)  20% 
B)  30% 
C)  40% 
D)  50%

Question 12

A _____ is a strategy for expanding capacity that waits until demand has increased to a point where additional capacity is necessary.

Accepted Answer

A)  capacity lag strategy 
B)  capacity lead strategy 
C)  capacity reduction strategy 
D)  capacity match strategy 
A)  capacity lag strategy 
B)  capacity lead strategy 
C)  capacity reduction strategy 
D)  capacity match strategy

Question 13

In the context of strategies for expanding capacity, which of the following statements is true of one large capacity increase

Accepted Answer

A)  This strategy aims to match capacity additions with demand as closely as possible. 
B)  An advantage of using this strategy is that the fixed costs of construction and operating system setup need to be incurred only once. 
C)  This strategy waits until demand has increased to a point where additional capacity is necessary. 
D)  When this strategy is used, there is always excess capacity and safety capacity to meet unexpected demand from large orders is provided. 
A)  This strategy aims to match capacity additions with demand as closely as possible. 
B)  An advantage of using this strategy is that the fixed costs of construction and operating system setup need to be incurred only once. 
C)  This strategy waits until demand has increased to a point where additional capacity is necessary. 
D)  When this strategy is used, there is always excess capacity and safety capacity to meet unexpected demand from large orders is provided.

Question 14

__________are achieved when the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases.

Accepted Answer

A)  Unfocused factories 
B)  Safety capacities 
C)  Diseconomies of scale 
D)  Economies of scale 
A)  Unfocused factories 
B)  Safety capacities 
C)  Diseconomies of scale 
D)  Economies of scale

Nonbottleneck management principles differ from bottleneck management principles because according to nonbottleneck management principles, _____.

A__________consists of dynamic methods to forecast demand, allocate perishable assets across market segments, decide when to overbook and by how much, and determine what price to charge different customer classes.

A__________matches capacity additions with demand as closely as possible.

Unlike a focused factory, an unfocused factory is characterized by:

The traditional operations management definition of throughput is:

In a revenue management system, forecasting, allocation, overbooking, and pricing must work in unison if the objective is to:

The earliest revenue management systems focused solely on__________.

Greyon Spinning Mills Inc. owns 600 spinning machines. Out of these, only 500 are used in a given year. Given this information, the utilization of spinning machines at Greyon Spinning Mills Inc. is _____.

Scorla Corp. is an apparel manufacturing factory. Its average resource utilization per year is calculated as 70%. The average safety capacity of Scorla Corp. is _____.

A _____ is a strategy for expanding capacity that waits until demand has increased to a point where additional capacity is necessary.

In the context of strategies for expanding capacity, which of the following statements is true of one large capacity increase

__________are achieved when the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases.

Operations Management and Value Chains

Measuring Performance in Operations and Value Chains

Operations Strategy

Technology and Operations Management

Goods and Service Design

Supply Chain Design

Process Selection, Design, and Analysis

Facility and Work Design

Forecasting and Demand Planning

Managing Inventories in Supply Chains

Supply Chain Management and Logistics

Resource Management

Operations Scheduling and Sequencing

Quality Management

Quality Control and SPC

Lean Operating Systems

Project Management

Filters

Exam 10: Capacity Management

Nonbottleneck management principles differ from bottleneck management principles because according to nonbottleneck management principles, _____.

A__________consists of dynamic methods to forecast demand, allocate perishable assets across market segments, decide when to overbook and by how much, and determine what price to charge different customer classes.

A__________matches capacity additions with demand as closely as possible.

Unlike a focused factory, an unfocused factory is characterized by:

The traditional operations management definition of throughput is:

In a revenue management system, forecasting, allocation, overbooking, and pricing must work in unison if the objective is to:

The earliest revenue management systems focused solely on__________.

Greyon Spinning Mills Inc. owns 600 spinning machines. Out of these, only 500 are used in a given year. Given this information, the utilization of spinning machines at Greyon Spinning Mills Inc. is _____.

Scorla Corp. is an apparel manufacturing factory. Its average resource utilization per year is calculated as 70%. The average safety capacity of Scorla Corp. is _____.

A _____ is a strategy for expanding capacity that waits until demand has increased to a point where additional capacity is necessary.

In the context of strategies for expanding capacity, which of the following statements is true of one large capacity increase

__________are achieved when the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases.

Operations Management and Value Chains

Measuring Performance in Operations and Value Chains

Operations Strategy

Technology and Operations Management

Goods and Service Design

Supply Chain Design

Process Selection, Design, and Analysis

Facility and Work Design

Forecasting and Demand Planning

Managing Inventories in Supply Chains

Supply Chain Management and Logistics

Resource Management

Operations Scheduling and Sequencing

Quality Management

Quality Control and SPC

Lean Operating Systems

Project Management

Filters