Question 1

The time required to change a machine from making one product or service to the next is called:

Accepted Answer

A) cycle time. 
B) setup time. 
C) queue time. 
D) hold time. 
A) cycle time. 
B) setup time. 
C) queue time. 
D) hold time.

Question 2

________ are useful capacity analysis tools when the future is uncertain and capacity decisions can be made in a sequential fashion.

Accepted Answer

The answer of ________ are useful capacity analysis tools when...

Question 3

Depict the expansionist strategy graphically as a plot of capacity against time and discuss the benefits of adopting this strategy.

Accepted Answer

@#IMG-DLM& The expansionist means large,infrequent

Question 4

Which of the following descriptions about waiting line models is BEST?

Accepted Answer

A) They account for major events such as competitor actions. 
B) They account for the random,independent behavior of many customers. 
C) They assume that each branch can give the highest expected payoff. 
D) They deal with the certainty and stability in demand. 
A) They account for major events such as competitor actions. 
B) They account for the random,independent behavior of many customers. 
C) They assume that each branch can give the highest expected payoff. 
D) They deal with the certainty and stability in demand.

Question 5

Capacity cushions may be lowered if companies smooth the output rate by raising prices when inventory is low and decreasing prices when it is high.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

Long-term capacity decisions that confront managers include all of the following EXCEPT:

Accepted Answer

A) capital equipment. 
B) additional land. 
C) buildings. 
D) workforce size. 
A) capital equipment. 
B) additional land. 
C) buildings. 
D) workforce size.

Question 8

Table 4.1
The Union Manufacturing Company is producing two types of products: A and B.The demand forecasts,batch size,and time standards follow:
   Both products are produced on the same machine,called Mark I.
-Using Table 4.1,what is the total number of hours required of Mark I equipment for the next year?

Accepted Answer

A) fewer than 29,000 hours 
B) between 29,000 and 30,000 hours 
C) between 30,000 and 31,000 hours 
D) more than 31,000 hours 
A) fewer than 29,000 hours 
B) between 29,000 and 30,000 hours 
C) between 30,000 and 31,000 hours 
D) more than 31,000 hours

Question 9

What are the four steps involved in making capacity decisions?

Accepted Answer

The steps are: 1)estimate future capacit

Question 10

A wait-and-see capacity strategy minimizes the chances of lost sales due to insufficient capacity.

Accepted Answer

A) True 
 B)False

Question 11

Capacity can be expressed by output or input measures.

Accepted Answer

A) True 
 B)False

Question 12

Use the information in Scenario 4.5.What is the pre-tax cash flow (net present value)for alternative #2 compared to the base case of doing nothing for the next five years?

Accepted Answer

A) negative pre-tax cash flow 
B) more than $0 but less than $40,000 
C) more than $40,000 but less than $80,000 
D) more than $80,000 
A) negative pre-tax cash flow 
B) more than $0 but less than $40,000 
C) more than $40,000 but less than $80,000 
D) more than $80,000

Question 13

What information would managers use to choose the best cost-effective capacity to balance customer service with the cost of adding capacity?

Accepted Answer

A) decision trees 
B) economies of scale 
C) capacity cushion 
D) waiting line models 
A) decision trees 
B) economies of scale 
C) capacity cushion 
D) waiting line models

Question 14

It takes a service rep an average of two and a half minutes to take a customer's information.Over the course of a work week,the rep handles 160 calls a day during her eight hour shift.What is the service rep's capacity cushion?

Accepted Answer

A) 16% 
B) 33% 
C) 50% 
D) 66% 
A) 16% 
B) 33% 
C) 50% 
D) 66%

Question 15

The ________ is the set of consecutive time periods considered for planning purposes.

Accepted Answer

The answer of The ________ is the set of consecutive...

Question 16

A firm may preempt the expansion of competitive firms by using an expansionist capacity strategy and announcing a large capacity expansion.

Accepted Answer

A) True 
 B)False

Question 17

A process's ________ is what its capacity should be for some future time period to meet the demand of its customers,allowing for the desired capacity cushion.

Accepted Answer

capacity r

Question 18

Define utilization and give a service process example of it.

Accepted Answer

Utilization is expressed as a

Question 19

When future demand is uncertain and sequential decisions are involved in capacity planning,a manager should use a:

Accepted Answer

A) waiting line model. 
B) cash flow analysis. 
C) decision tree. 
D) gap analysis. 
A) waiting line model. 
B) cash flow analysis. 
C) decision tree. 
D) gap analysis.

Question 20

The single milling machine at Stout Manufacturing was severely overloaded last year.The plant operates eight hours per day,five days per week,and 50 weeks per year.Management prefers a capacity cushion of 15 percent.Two major types of products are routed through the milling machine.The annual demand for product A is 3000 units and 2000 units for product B.The batch size for A is 20 units and 40 units for B.The standard processing time for A is 0.5 hours/unit and 0.8 hours/unit for B.The standard setup time for product A is 2 hours and 8 hours for product B.How many new milling machines are required if Stout does not resort to any short-term capacity options?

Accepted Answer

A) no new machines 
B) 1 or 2 new machines 
C) 3 or 4 new machines 
D) more than 4 new machines 
A) no new machines 
B) 1 or 2 new machines 
C) 3 or 4 new machines 
D) more than 4 new machines

Exam 4: Capacity Planning

The time required to change a machine from making one product or service to the next is called:

________ are useful capacity analysis tools when the future is uncertain and capacity decisions can be made in a sequential fashion.

Depict the expansionist strategy graphically as a plot of capacity against time and discuss the benefits of adopting this strategy.

Which of the following descriptions about waiting line models is BEST?

Capacity cushions may be lowered if companies smooth the output rate by raising prices when inventory is low and decreasing prices when it is high.

Long-term capacity decisions that confront managers include all of the following EXCEPT:

What are the four steps involved in making capacity decisions?

A wait-and-see capacity strategy minimizes the chances of lost sales due to insufficient capacity.

Capacity can be expressed by output or input measures.

Use the information in Scenario 4.5.What is the pre-tax cash flow (net present value)for alternative #2 compared to the base case of doing nothing for the next five years?

What information would managers use to choose the best cost-effective capacity to balance customer service with the cost of adding capacity?

It takes a service rep an average of two and a half minutes to take a customer's information.Over the course of a work week,the rep handles 160 calls a day during her eight hour shift.What is the service rep's capacity cushion?

The ________ is the set of consecutive time periods considered for planning purposes.

A firm may preempt the expansion of competitive firms by using an expansionist capacity strategy and announcing a large capacity expansion.

A process's ________ is what its capacity should be for some future time period to meet the demand of its customers,allowing for the desired capacity cushion.

Define utilization and give a service process example of it.

When future demand is uncertain and sequential decisions are involved in capacity planning,a manager should use a:

Using Operations to Create Value

Process Strategy and Analysis

Quality and Performance

Constraint Management

Lean Systems

Project Management

Forecasting

Inventory Management

Operations Planning and Scheduling

Resource Planning

Supply Chain Design

Supply Chain Logistic Networks

Supply Chain Integration

Supply Chain Sustainability

Decision Making

Waiting Lines

Special Inventory Models

Linear Programming

Simulation

Financial Analysis

Acceptance Sampling Plans

Measuring Output Rates

Learning Curve Analysis

Operations Scheduling

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