Exam 10: Supply Chain Capacity Planning

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Operations capacity describes how many units can be supplied per unit of time.

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What can be learned from playing the supply chain game?

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How can LP or linear program be used in a strategic way to support capacity management?

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At breakeven,cost recovery is beginning.

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The three breakeven lines are fixed costs,total costs,variable costs.

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The definition that best fits capacity is

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Linear programming (LP) is a modeling technique used by marketing to achieve optimal pricing for products.

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For services,a bank might compare the _____ number of people the bank teller can process per hour with the _____ number of people the ATM can process per hour.This is a supply chain service capacity comparison.

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The two kinds of capacity situations (extra- and under-) have a trade-off relationship.

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In a graphical presentation of break-even analysis,loss occurs to the _____ of the BEP.

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PMC (productivities at maximum capacity) makes an excellent predictive measure of demand.

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The use of robots is a wise choice for nuclear experimentation.

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Total revenue is the volume (V) multiplied by the price per unit (p).

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Lack of orders or breakdowns of productive systems will diminish

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Learning curves

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The Global Company has engaged a management consultant to analyze and improve its operations.His major recommendation is to "conveyorize" the production floor.This would represent a sizable investment for Global.In order to determine whether or not the idea is feasible,a breakeven analysis will be utilized.The situation is as follows: The cost of the conveyor will be $200,000 to be depreciated on a straight-line basis over 10 years.The conveyor will reduce operating costs by $0.25 per unit.Each unit sells for $2.00.The sales manager estimates that,on the basis of previous years,Global can expect a sales volume of 100,000 units.This represents 100 percent utilization of capacity.Current yearly contribution to fixed costs is $100,000.Current vc rate is $0.50 per unit.Should Global install this conveyor?

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The domains of cost concerns and responsibilities are listed.Which choice is wrong?

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The fixed costs and capacities of flow shops are much higher than the fixed costs and capacities of _____.

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Stockless materials management systems are basically _____ managed inventory systems where a third party manages all or part of the supplies.

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Loss occurs to the left of the breakeven point (BEP).

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