Question 1

Utilization is the number of units a facility can hold,receive,store,or produce in a period of time.

Accepted Answer

A) True 
 B)False

Question 2

TOC strives to reduce the effect of constraints by:

Accepted Answer

A) offloading work from constrained workstations. 
B) increasing constrained workstation capability. 
C) changing workstation order to reduce throughput time. 
D) A and B 
E) A,B,and C 
A) offloading work from constrained workstations. 
B) increasing constrained workstation capability. 
C) changing workstation order to reduce throughput time. 
D) A and B 
E) A,B,and C

Question 3

Of the four approaches to capacity expansion,the approach that "straddles" demand:

Accepted Answer

A) uses incremental expansion. 
B) uses one-step expansion. 
C) at some times leads demand,and at other times lags. 
D) works best when demand is not growing but is stable. 
E) Choices A and C are both correct. 
A) uses incremental expansion. 
B) uses one-step expansion. 
C) at some times leads demand,and at other times lags. 
D) works best when demand is not growing but is stable. 
E) Choices A and C are both correct.

Question 4

A local business owner is considering adding another employee to his staff in an effort to increase the number of hours that the store is open per day.If the employee will cost the owner $4,000 per month and the store takes in $50/hour in revenue with variable costs of $15/hour,how many hours must the new employee work for the owner to break even?

Accepted Answer

BEP = 4000

Question 5

Describe how EMV might be used to analyze a capacity decision.

Accepted Answer

The EMV for each capacity decision (perh

Question 6

Which of the following represents a common way to manage capacity in the service sector?

Accepted Answer

A) appointments 
B) reservations 
C) changes in staffing levels 
D) first-come,first-served service rule 
E) "early bird" specials in restaurants 
A) appointments 
B) reservations 
C) changes in staffing levels 
D) first-come,first-served service rule 
E) "early bird" specials in restaurants

Question 7

In "drum,buffer,rope," what provides the schedule,i.e.the pace of production?

Accepted Answer

A) drum 
B) buffer 
C) rope 
D) all three of the above in combination 
E) none of the above 
A) drum 
B) buffer 
C) rope 
D) all three of the above in combination 
E) none of the above

Question 8

A new machine tool is expected to generate receipts as follows: $5,000 in year one;$3,000 in year two,nothing in the next year,and $2,000 in the fourth year.At an interest rate of 6%,what is the net present value of these receipts? Is this a better net present value than $2,500 each year over four years? Explain.

Accepted Answer

S = R × X = 300 ×3,000 × 3.465

Question 9

The efficiency of a factory is 75% and its utilization 50%.If effective capacity is 1000 find design capacity.

Accepted Answer

Output = Efficiency ∗ Effectiv

Question 10

A firm is weighing three capacity alternatives: small,medium,and large job shop.Whatever capacity choice is made,the market for the firm's product can be "moderate" or "strong." The probability of moderate acceptance is estimated to be 40 percent;strong acceptance has a probability of 60 percent.The payoffs are as follows.Small job shop,moderate market = $24,000;Small job shop,strong market = $54,000.Medium job shop,moderate market = $20,000;medium job shop,strong market = $64,000.Large job shop,moderate market = -$2,000;large job shop,strong market = $96,000.Which capacity choice should the firm make?

Accepted Answer

The expected values for the th

Question 11

Expected output is sometimes referred to as rated capacity.

Accepted Answer

A) True 
 B)False

Question 12

Price changes are useful for matching the level of demand to the capacity of a facility.

Accepted Answer

A) True 
 B)False

Question 13

In "drum,buffer,rope," the ________ acts like signals between workstations.

Accepted Answer

The answer of In "drum,buffer,rope," the ________ acts like signals...

Question 14

A product is currently made in a process-focused shop,where fixed costs are $8,000 per year and variable cost is $40 per unit.The firm currently sells 200 units of the product at $200 per unit.A manager is considering a repetitive focus to lower costs (and lower prices,thus raising demand).The costs of this proposed shop are fixed costs = $24,000 per year and variable costs = $10 per unit.If a price of $80 will allow 400 units to be sold,what profit (or loss)can this proposed new process expect? Do you anticipate that the manager will want to change the process? Explain.

Accepted Answer

Old: TR = $40,000,TC = $16,000,therefore

Question 15

Substantial research has proved that the only successful method of dealing with bottlenecks is to increase the bottleneck's capacity.

Accepted Answer

A) True 
 B)False

Question 16

Distinguish between utilization and efficiency.

Accepted Answer

Both are ratios,not item counts.Both use

Utilization is the number of units a facility can hold,receive,store,or produce in a period of time.

TOC strives to reduce the effect of constraints by:

Of the four approaches to capacity expansion,the approach that "straddles" demand:

Describe how EMV might be used to analyze a capacity decision.

Which of the following represents a common way to manage capacity in the service sector?

In "drum,buffer,rope," what provides the schedule,i.e.the pace of production?

The efficiency of a factory is 75% and its utilization 50%.If effective capacity is 1000 find design capacity.

Expected output is sometimes referred to as rated capacity.

Price changes are useful for matching the level of demand to the capacity of a facility.

In "drum,buffer,rope," the ________ acts like signals between workstations.

Substantial research has proved that the only successful method of dealing with bottlenecks is to increase the bottleneck's capacity.

Distinguish between utilization and efficiency.

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy

Location Strategies

Layout Strategies

Human Resources,job Design,and Work Measurement

Supply Chain Management

Inventory Management

Aggregate Planning and Sop

Material Requirements Planning Mrpand Erp

Short-Term Scheduling

Jit,tps,and Lean Operations

Maintenance and Reliability

Sustainability in the Supply Chain

Statistical Process Control

Supply Chain Management Analytics

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters

Exam 20: Capacity and Constraint Management

Utilization is the number of units a facility can hold,receive,store,or produce in a period of time.

TOC strives to reduce the effect of constraints by:

Of the four approaches to capacity expansion,the approach that "straddles" demand:

Describe how EMV might be used to analyze a capacity decision.

Which of the following represents a common way to manage capacity in the service sector?

In "drum,buffer,rope," what provides the schedule,i.e.the pace of production?

The efficiency of a factory is 75% and its utilization 50%.If effective capacity is 1000 find design capacity.

Expected output is sometimes referred to as rated capacity.

Price changes are useful for matching the level of demand to the capacity of a facility.

In "drum,buffer,rope," the ________ acts like signals between workstations.

Substantial research has proved that the only successful method of dealing with bottlenecks is to increase the bottleneck's capacity.

Distinguish between utilization and efficiency.

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Process Strategy

Location Strategies

Layout Strategies

Human Resources,job Design,and Work Measurement

Supply Chain Management

Inventory Management

Aggregate Planning and Sop

Material Requirements Planning Mrpand Erp

Short-Term Scheduling

Jit,tps,and Lean Operations

Maintenance and Reliability

Sustainability in the Supply Chain

Statistical Process Control

Supply Chain Management Analytics

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters