Question 1

The process step that limits throughput for the entire process chain is the ________.

Accepted Answer

constraint,bottleneck

Question 2

In general,higher conformance quality reduces capacity since the extra care taken during production slows the output rate.

Accepted Answer

A) True 
 B)False  False

Question 3

Discuss the Theory of Constraints and how it impacts capacity.What is the five-step approach to managing the system constraint?

Accepted Answer

The Theory of Constraints (TOC)is based on the recognition that many products and services proceed through a series of linked processes.These process steps can be contained within a single organization or stretched across multiple organizations (i.e. ,a supply chain).Each process step has its own capacity level,and in every case,there is at least one process step that limits throughput for the entire chain.This process step is referred to as the constraint and in most cases,it alone dictates the throughput attainable for the entire system.
TOC experts have suggested a five-step approach to managing the constraint,and hence throughput,for a process chain:
1.Identify the constraint.The constraint can be anywhere in the chain - including upstream or downstream supply chain partners.When the constraint occurs outside the company,it is often referred to as an external constraint.In contrast,if the constraint is within a company's set of activities,it is referred to as an internal constraint.
2.Exploit the constraint.An hour of throughput lost at the constraint is an hour of throughput lost for the entire chain.It is therefore imperative that organizations carefully manage the constraint to ensure an uninterrupted flow of customers or products through the constraint.
3.Subordinate everything to the constraint.If conflicts arise between exploiting the constraint and efforts to "improve" performance elsewhere (e.g. ,letting an upstream process decrease inventory in a way that starves the constraint for work),management needs to remember that it is the constraint that determines throughput and act accordingly.
4.Elevate the constraint.If the organization needs to increase throughput,find ways to increase the capacity of the constraint.
5.Find the new constraint and repeat the steps.As the effective capacity of the constraint is increased,it may cease to be a constraint.In that case,the emphasis should shift to finding and exploiting the new constraint.

Question 4

A traditional university classroom has room for 30 students and is scheduled for use during 12 consecutive one hour periods from 8:00 a.m.to 8:00 p.m.in the spring semester.Its theoretical capacity is therefore half of its rated capacity.

Accepted Answer

A) True 
 B)False

Question 5

A subdivision is planned for forty houses,each with its own in-ground swimming pool.A contractor estimates it will take him 30 hours to build the first pool and that there is a 90% learning curve associated with this process.
-How long will it take to build the last pool?

Accepted Answer

A) 27.2 hours 
B) 23.9 hours 
C) 20.5 hours 
D) 17.1 hours 
A) 27.2 hours 
B) 23.9 hours 
C) 20.5 hours 
D) 17.1 hours

Question 6

Which of the following statements about learning curves is BEST?

Accepted Answer

A) Learning improvements always follow a constant pattern. 
B) Frequent design changes and reengineering have no effect on learning rates. 
C) Underestimated learning effects may cause overestimation of capacity needs. 
D) An eighty percent learning curve means that each unit takes twenty percent less time to produce than its immediate predecessor. 
A) Learning improvements always follow a constant pattern. 
B) Frequent design changes and reengineering have no effect on learning rates. 
C) Underestimated learning effects may cause overestimation of capacity needs. 
D) An eighty percent learning curve means that each unit takes twenty percent less time to produce than its immediate predecessor.

Question 7

What is the break even point for location D if Jimbo decides to charge $21 per student?

Accepted Answer

A) 4,000 students 
B) 4,250 students 
C) 4,500 students 
D) 5,000 students 
A) 4,000 students 
B) 4,250 students 
C) 4,500 students 
D) 5,000 students

Question 8

The break-even formula   does not include a provision for a price break if a customer purchases a large quantity.

Accepted Answer

A) True 
 B)False

Question 9

Jimbo Elrod has obtained fixed and variable cost information for four potential locations for his professional wrestling school and summarized it in tabular form below.All values are in dollars.
  
-Jimbo plans to charge the same amount for tuition regardless of where he decides to establish his school.If he believes that 700 students will matriculate each year,which location will result in the lowest total cost?

Accepted Answer

A) Location A 
B) Location B 
C) Location C 
D) Location D 
A) Location A 
B) Location B 
C) Location C 
D) Location D

Question 10

Which of the following statements about capacity strategies is NOT correct?

Accepted Answer

A) Lead capacity strategy can be used to preempt competitors who might be planning to expand their own capacity. 
B) A lag capacity strategy tends to have greater productivity due to higher utilization levels. 
C) A match capacity strategy tends to avoid periods of high under- or overutilization. 
D) A lag capacity strategy would be well-suited for a period of high growth. 
A) Lead capacity strategy can be used to preempt competitors who might be planning to expand their own capacity. 
B) A lag capacity strategy tends to have greater productivity due to higher utilization levels. 
C) A match capacity strategy tends to avoid periods of high under- or overutilization. 
D) A lag capacity strategy would be well-suited for a period of high growth.

Question 11

A lead capacity strategy has the advantage of:

Accepted Answer

A) a reduced risk of overbuilding. 
B) greater productivity due to high utilization levels. 
C) assuring adequate capacity during all types of growth. 
D) the ability to put off large investments as long as possible. 
A) a reduced risk of overbuilding. 
B) greater productivity due to high utilization levels. 
C) assuring adequate capacity during all types of growth. 
D) the ability to put off large investments as long as possible.

Question 12

Total cost to produce is the sum of expenses incurred regardless of output plus the variable cost per unit of business activity multiplied by ________.

Accepted Answer

amount of

Question 13

A learning percentage of 80 means that each time output is doubled,it takes ________ percent less time to produce than before.

Accepted Answer

The answer of A learning percentage of 80 means that...

Question 14

A wise professor crafts a midterm that is beautiful to behold,painful to take,and a chore to grade.The first exam takes almost an hour and a half to grade (89 minutes and 24.7 seconds to be precise)but the second one takes only seventy-six minutes to complete.Realizing that learning effects are at work,the professor looks at his social calendar and spots an important social engagement at this time on the following day,exactly 24 hours from now.How long will it take to grade the third exam? How long will it take to finish grading exams for the entire class of 30 students?

Accepted Answer

The second exam takes 76/89.41167 or 85%

Question 15

Of the three capacity strategies discussed in this chapter,the ________ strategy is the most optimistic from the standpoint of the decision maker.

Accepted Answer

The answer of Of the three capacity strategies discussed in...

Question 16

Students arrive at a professor's office every 20 minutes during final exam week according to a Poisson distribution.What is the probability that the professor's one hour afternoon nap will not be disrupted by any student arrivals?

Accepted Answer

A) 0.00 
B) 0.05 
C) 0.15 
D) 0.45 
A) 0.00 
B) 0.05 
C) 0.15 
D) 0.45

Question 17

A collection of companies decides to work together for a while to provide service for what they see as a short-term window of opportunity.These firms plan to coordinate their activities by deploying sophisticated information systems to share critical data.Each of these companies is skilled at one or two core activities - design,manufacturing,distribution,marketing,and so on.This association of companies can be described as a(n)________.

Accepted Answer

virtual su

Question 18

An analysis tool that enables users to lay out decisions,especially those requiring a sequence of decisions to be made is a(n)________.

Accepted Answer

The answer of An analysis tool that enables users to...

Question 19

Which of the following statements about theoretical capacity is BEST?

Accepted Answer

A) Theoretical capacity allows adjustments for preventive maintenance. 
B) Running a factory at this level for a short time is often better than permanently raising resource levels. 
C) Theoretical capacity levels are usually lower than rated capacity levels. 
D) Theoretical capacity levels take into account that machines occasionally break and that workers occasionally call in sick. 
A) Theoretical capacity allows adjustments for preventive maintenance. 
B) Running a factory at this level for a short time is often better than permanently raising resource levels. 
C) Theoretical capacity levels are usually lower than rated capacity levels. 
D) Theoretical capacity levels take into account that machines occasionally break and that workers occasionally call in sick.

Question 20

A major computer manufacturer is interested in establishing a customer service center to handle business for the next decade.They conduct exhaustive research on land and construction costs,utilities,tax breaks,and wages at three sites,Oklahoma City,Austin,and Nashville.Answer these questions using these costs as displayed in the table below.
   Graph the total cost curves and indicate the range of output that is best for each prospective site.What are the assumptions you have made in this analysis?

Accepted Answer

The total cost equations are as follows:

The process step that limits throughput for the entire process chain is the ________.

In general,higher conformance quality reduces capacity since the extra care taken during production slows the output rate.

Discuss the Theory of Constraints and how it impacts capacity.What is the five-step approach to managing the system constraint?

A traditional university classroom has room for 30 students and is scheduled for use during 12 consecutive one hour periods from 8:00 a.m.to 8:00 p.m.in the spring semester.Its theoretical capacity is therefore half of its rated capacity.

A subdivision is planned for forty houses,each with its own in-ground swimming pool.A contractor estimates it will take him 30 hours to build the first pool and that there is a 90% learning curve associated with this process. -How long will it take to build the last pool?

Which of the following statements about learning curves is BEST?

What is the break even point for location D if Jimbo decides to charge $21 per student?

The break-even formula does not include a provision for a price break if a customer purchases a large quantity.

Which of the following statements about capacity strategies is NOT correct?

A lead capacity strategy has the advantage of:

Total cost to produce is the sum of expenses incurred regardless of output plus the variable cost per unit of business activity multiplied by ________.

A learning percentage of 80 means that each time output is doubled,it takes ________ percent less time to produce than before.

Of the three capacity strategies discussed in this chapter,the ________ strategy is the most optimistic from the standpoint of the decision maker.

Students arrive at a professor's office every 20 minutes during final exam week according to a Poisson distribution.What is the probability that the professor's one hour afternoon nap will not be disrupted by any student arrivals?

An analysis tool that enables users to lay out decisions,especially those requiring a sequence of decisions to be made is a(n)________.

Which of the following statements about theoretical capacity is BEST?

Introduction to Operations and Supply Chain Management

Operations and Supply Chain Strategies

Process Choice and Layout Decisions in Manufacturing and Services

Business Processes

Managing Quality

S Advanced Waiting Line Theory and Simulation Modeling

Supply Management

Logistics

Forecasting

Sales and Operations Planning Aggregate Planning

Managing Inventory Throughout the Supply Chain

Managing Production Across the Supply Chain

S Supply Chain Information Systems

Jitlean Production

Managing Projects

Developing Products and Services

Filters

Exam 6: Managing Capacity

The process step that limits throughput for the entire process chain is the ________.

In general,higher conformance quality reduces capacity since the extra care taken during production slows the output rate.

Discuss the Theory of Constraints and how it impacts capacity.What is the five-step approach to managing the system constraint?

A traditional university classroom has room for 30 students and is scheduled for use during 12 consecutive one hour periods from 8:00 a.m.to 8:00 p.m.in the spring semester.Its theoretical capacity is therefore half of its rated capacity.

A subdivision is planned for forty houses,each with its own in-ground swimming pool.A contractor estimates it will take him 30 hours to build the first pool and that there is a 90% learning curve associated with this process. -How long will it take to build the last pool?

Which of the following statements about learning curves is BEST?

What is the break even point for location D if Jimbo decides to charge $21 per student?

The break-even formula does not include a provision for a price break if a customer purchases a large quantity.

Which of the following statements about capacity strategies is NOT correct?

A lead capacity strategy has the advantage of:

Total cost to produce is the sum of expenses incurred regardless of output plus the variable cost per unit of business activity multiplied by ________.

A learning percentage of 80 means that each time output is doubled,it takes ________ percent less time to produce than before.

Of the three capacity strategies discussed in this chapter,the ________ strategy is the most optimistic from the standpoint of the decision maker.

Students arrive at a professor's office every 20 minutes during final exam week according to a Poisson distribution.What is the probability that the professor's one hour afternoon nap will not be disrupted by any student arrivals?

An analysis tool that enables users to lay out decisions,especially those requiring a sequence of decisions to be made is a(n)________.

Which of the following statements about theoretical capacity is BEST?

Introduction to Operations and Supply Chain Management

Operations and Supply Chain Strategies

Process Choice and Layout Decisions in Manufacturing and Services

Business Processes

Managing Quality

S Advanced Waiting Line Theory and Simulation Modeling

Supply Management

Logistics

Forecasting

Sales and Operations Planning Aggregate Planning

Managing Inventory Throughout the Supply Chain

Managing Production Across the Supply Chain

S Supply Chain Information Systems

Jitlean Production

Managing Projects

Developing Products and Services

Filters