Exam 14: Capacity: Matching Productive Resources to Demand

The time lost by the nonconstraint is lost for the entire system.

Match these items. -Best operating level

Which of the following statements is true about constraint management?

The critical resources that can limit the output level of the entire system are referred to as:

Match these items. -Rough-cut capacity planning

Rough-cut capacity planning is completed at the _____ level, while MRP is completed at the _____ level.

Match these items. -Capacity Requirements Planning

Match these items. -Level production

Costs associated with level production aggregate planning can include which of the following:

If a service temporarily met demand that was significantly above its design capacity, we would expect that

A mismatch between demand and design capacity can be even more serious in the service sector because its effects go beyond simple cost issues.

Overbooking is used

Capacity requirements planning, like MRP, is completed at the end item level.

The ______ ________ aggregate plan deals with demand fluctuations through a buffer of finished product inventory.

In level production aggregate planning the production level for each period is determined by:

Match these items. -Constraint management

The rate of production the business was designed to accommodate on a long-term basis is referred to as:

The capacity of one critical resource can _____ the output level of the entire system.

Prior to developing an overbooking policy, a business must

Yield management techniques recognize that