Exam 10: Supply Chain Capacity Planning

Slack is correctly calculated as:

Skillful management can decrease actual capacity.

Discuss the long- and short-term issues related to CRP.

When determining capacity it is essential to consider what type(s) of bottlenecks?

In labor-intensive situations _____ concepts can be put to good use.

The probability that actual supply chain demand exceeds average demand is estimated to be 5 percent of the year (365 days) or 18.25 summer days.What total costs are associated with Cnp,when it is determined that the loss of goodwill in the community averages $30,000 per incident? The events provoking such costs include brownouts,power failures,etc.

A potential backup supplier who can make up an emergency shortfall in materials is needed. Having this supplier in place before the shortage occurs is known as _____ planning.

The peak load for Swimsuits Inc.(SWIM),a manufacturer of bathing suits,occurs in March and April when the cutters and sewers occupy every square foot in the plant.This determines the maximum output capacity of the company,which is 250 suits per hour.SWIM works a 10-hour day,six days a week.Adding shift time is considered impossible.Therefore,it has been suggested that floor space be expanded by renting an adjoining loft for $1,200 per week.This would increase maximum output capacity by 12 percent.The sales manager believes that SWIM could sell 18,000 bathing suits per week during the 10-week season,at a profit of $1.00 per suit based on existing costs of materials and labor.During the summer,the SWIM plant is less than 50 percent utilized.Explain why the loft should or should not be rented.Are there any other capacity-based observations to be considered? If FC = $1200,vc = $15 and R = $16,determine the BEP.

_____ developed breakeven charts in the _____.

Cnp stands for the cost of not having capacity to meet demands that are less than the average demand.

If the _____ capacity of a process is less than the peak demand,knowing how to assign priorities will influence real capacity levels achieved.

How does backordering augment service capacity?

Floating bottlenecks can make the determination of maximum capacity very simple because you can wait them out and they will eventually become obvious.

The experience curve is the rate of decrease in per unit costs for each doubling of production volume.The BCG has found this rate to be between 30 percent and 60 percent.

A six sigma control limit equals 3.4 defects per _____ parts.

When the Japanese company Quasar purchased the TV division of Motorola,to what levels did the defect rate drop?

A decision model can best be explained in terms of

Which equipment type is used in jobs shops because it is designed for high variety in relatively low capacity volumes?

Linear programming finds the optimal solution by a strong search method that is much _____ than trail and error.

Backorders can be used to postpone satisfying demand when there is no inventory available.