Question 1

Protective capacity

Accepted Answer

A)  Tends to be in short supply because it is often viewed as an investment in resources that aren't providing a financial return. 
B)  Appears to be an effective use of resources because it is used all the time. 
C)  Provides a short-term financial return through its impact on various time-related value attributes. 
D)  Must be accompanied by protective inventory. 
A)  Tends to be in short supply because it is often viewed as an investment in resources that aren't providing a financial return. 
B)  Appears to be an effective use of resources because it is used all the time. 
C)  Provides a short-term financial return through its impact on various time-related value attributes. 
D)  Must be accompanied by protective inventory.

Question 2

For many systems, the capacity of the constraint determines the capacity of the system.

Accepted Answer

A) True 
 B)False

Question 3

Under the demand chase approach to aggregate planning, changes in production levels are dealt with:

Accepted Answer

A)  By using demand promotions 
B)  By hiring and laying off workers 
C)  With inventory only 
D)  With a combination of inventory and part-time workers. 
A)  By using demand promotions 
B)  By hiring and laying off workers 
C)  With inventory only 
D)  With a combination of inventory and part-time workers.

Question 4

Which of the following statements is true about capacity?

Accepted Answer

A)  Capacity-related issues are the most significant difference between producing products and producing services. 
B)  In most businesses, capacity is defined precisely in terms of a level of output per unit volume. 
C)  If capacity is insufficient in the constraint resource, demand can still be met by higher utilization of nonconstraints. 
D)  Design capacity is typically the level of output a business can produce for a short period of time. 
A)  Capacity-related issues are the most significant difference between producing products and producing services. 
B)  In most businesses, capacity is defined precisely in terms of a level of output per unit volume. 
C)  If capacity is insufficient in the constraint resource, demand can still be met by higher utilization of nonconstraints. 
D)  Design capacity is typically the level of output a business can produce for a short period of time.

Question 5

In most business settings, capacity is defined precisely in terms of a level of input per unit time.

Accepted Answer

A) True 
 B)False

Question 6

In rough-cut capacity planning, available hours are calculated by

Accepted Answer

A)  Multiplying required capacity per unit by the quantity in the master production schedule 
B)  Multiplying the standard hours available by the hours actually used 
C)  Dividing actual output by expected output 
D)  Multiplying the actual hours available by the historical utilization and historical efficiency 
A)  Multiplying required capacity per unit by the quantity in the master production schedule 
B)  Multiplying the standard hours available by the hours actually used 
C)  Dividing actual output by expected output 
D)  Multiplying the actual hours available by the historical utilization and historical efficiency

Question 7

Which of the following statements identify the characteristics associated with constrained productive systems?

Accepted Answer

A)  Individual resources in a constrained system control their own utilization rates 
B)  Time lost by the constraint is lost for the entire system 
C)  Increasing the productivity or output of a nonconstraint helps the system. 
D)  Once a constraint, always a constraint. 
A)  Individual resources in a constrained system control their own utilization rates 
B)  Time lost by the constraint is lost for the entire system 
C)  Increasing the productivity or output of a nonconstraint helps the system. 
D)  Once a constraint, always a constraint.

Question 8

Under level production aggregate planning, changes in production levels are dealt with:

Accepted Answer

A)  By using demand promotions 
B)  By hiring and laying off workers 
C)  With inventory only 
D)  With a combination of inventory and part-time workers. 
A)  By using demand promotions 
B)  By hiring and laying off workers 
C)  With inventory only 
D)  With a combination of inventory and part-time workers.

Question 9

Match these items.
-Design capacity

Accepted Answer

A)  When demand and design capacity are equal 
B)  Planned with a specific output level 
C)  Uses production level changes to match changes in demand 
D)  Is completed at the component level 
E)  Recognizes the role constraints play in productive systems
F) Uses inventory and variable labor to cope with demand fluctuations
G) May result in an overbooking policy
H) Uses the master production schedule as the source of product demand information
I) Used to add flexibility to operations
J) Uses finished product inventory to deal with demand fluctuations 
A)  When demand and design capacity are equal 
B)  Planned with a specific output level 
C)  Uses production level changes to match changes in demand 
D)  Is completed at the component level 
E)  Recognizes the role constraints play in productive systems
F) Uses inventory and variable labor to cope with demand fluctuations
G) May result in an overbooking policy
H) Uses the master production schedule as the source of product demand information
I) Used to add flexibility to operations
J) Uses finished product inventory to deal with demand fluctuations

Question 10

Capacity often has less an impact on ____ products or services can be produced than it has on ____ they can be produced.

Accepted Answer

The answer of Capacity often has less an impact on...

Question 11

In services, achieving the demand-capacity match often focuses on

Accepted Answer

A)  Adjusting design capacity 
B)  Smoothing demand 
C)  Using temporary workers 
D)  Matching short term capacity to demand peaks 
A)  Adjusting design capacity 
B)  Smoothing demand 
C)  Using temporary workers 
D)  Matching short term capacity to demand peaks

Question 12

Aggregate planning

Accepted Answer

A)  Is done at an aggregate level, rather than at an individual product level, because aggregate capacity is . easier to adjust than specific capacity. 
B)  Is always short-range capacity planning. 
C)  Uses inventory and variable labor level production to deal with demand fluctuations in an attempt to reduce costs. 
D)  Uses as its primary input a schedule of production for each product produced. 
A)  Is done at an aggregate level, rather than at an individual product level, because aggregate capacity is . easier to adjust than specific capacity. 
B)  Is always short-range capacity planning. 
C)  Uses inventory and variable labor level production to deal with demand fluctuations in an attempt to reduce costs. 
D)  Uses as its primary input a schedule of production for each product produced.

Question 13

Many car rental companies require overtime of their employees to adjust for the peaks of seasonal demand. This aggregate planning approach has resulted in high employee turnover. Because of the high turnover, car rental companies have had difficulty hiring the right number of employees and the training provided to these new employees has been minimal. Discuss the implication of this strategy for the car rental business. Are there any other strategies that you would recommend the car rental companies' implement in addition to using overtime?

Accepted Answer

The student response should discuss othe

Question 14

Which of the following statements is not true about demand chase aggregate planning?

Accepted Answer

A)  It is the simplest approach to aggregate planning. 
B)  Changes in production levels are dealt with through a buffer of finished goods inventory. 
C)  Under the demand chase strategy, some costs aren't quantifiable. 
D)  A pure demand chase strategy is uncommon. 
E)  Financial costs associated with this plan are the costs of hiring and laying off workers. 
A)  It is the simplest approach to aggregate planning. 
B)  Changes in production levels are dealt with through a buffer of finished goods inventory. 
C)  Under the demand chase strategy, some costs aren't quantifiable. 
D)  A pure demand chase strategy is uncommon. 
E)  Financial costs associated with this plan are the costs of hiring and laying off workers.

Question 15

The ______ ________ aggregate plan deals with demand fluctuations through hiring and firing of employees.

Accepted Answer

The answer of The ______ ________ aggregate plan deals with...

Question 16

In each of the time-related value attributes, a company's ability to improve performance hinges on having available capacity.

Accepted Answer

A) True 
 B)False

Question 17

Match these items.
-Demand chase

Accepted Answer

A)  When demand and design capacity are equal 
B)  Planned with a specific output level 
C)  Uses production level changes to match changes in demand 
D)  Is completed at the component level 
E)  Recognizes the role constraints play in productive systems
F) Uses inventory and variable labor to cope with demand fluctuations
G) May result in an overbooking policy
H) Uses the master production schedule as the source of product demand information
I) Used to add flexibility to operations
J) Uses finished product inventory to deal with demand fluctuations 
A)  When demand and design capacity are equal 
B)  Planned with a specific output level 
C)  Uses production level changes to match changes in demand 
D)  Is completed at the component level 
E)  Recognizes the role constraints play in productive systems
F) Uses inventory and variable labor to cope with demand fluctuations
G) May result in an overbooking policy
H) Uses the master production schedule as the source of product demand information
I) Used to add flexibility to operations
J) Uses finished product inventory to deal with demand fluctuations

Question 18

Match these items.
-Aggregate planning

Accepted Answer

A)  When demand and design capacity are equal 
B)  Planned with a specific output level 
C)  Uses production level changes to match changes in demand 
D)  Is completed at the component level 
E)  Recognizes the role constraints play in productive systems
F) Uses inventory and variable labor to cope with demand fluctuations
G) May result in an overbooking policy
H) Uses the master production schedule as the source of product demand information
I) Used to add flexibility to operations
J) Uses finished product inventory to deal with demand fluctuations 
A)  When demand and design capacity are equal 
B)  Planned with a specific output level 
C)  Uses production level changes to match changes in demand 
D)  Is completed at the component level 
E)  Recognizes the role constraints play in productive systems
F) Uses inventory and variable labor to cope with demand fluctuations
G) May result in an overbooking policy
H) Uses the master production schedule as the source of product demand information
I) Used to add flexibility to operations
J) Uses finished product inventory to deal with demand fluctuations

Question 19

Services that have high fixed costs and little marginal cost for additional customers, have developed more sophisticated approaches to leveling demand.

Accepted Answer

A) True 
 B)False

Question 20

The use of contingent workers can

Accepted Answer

A)  Reduce the business's flexibility. 
B)  Result in quality problems. 
C)  Eliminate the need to overbook customers. 
D)  Enhance employee morale. 
A)  Reduce the business's flexibility. 
B)  Result in quality problems. 
C)  Eliminate the need to overbook customers. 
D)  Enhance employee morale.

Protective capacity

For many systems, the capacity of the constraint determines the capacity of the system.

Under the demand chase approach to aggregate planning, changes in production levels are dealt with:

Which of the following statements is true about capacity?

In most business settings, capacity is defined precisely in terms of a level of input per unit time.

In rough-cut capacity planning, available hours are calculated by

Which of the following statements identify the characteristics associated with constrained productive systems?

Under level production aggregate planning, changes in production levels are dealt with:

Match these items. -Design capacity

Capacity often has less an impact on products or services can be produced than it has on they can be produced.

In services, achieving the demand-capacity match often focuses on

Aggregate planning

Which of the following statements is not true about demand chase aggregate planning?

The __ aggregate plan deals with demand fluctuations through hiring and firing of employees.

In each of the time-related value attributes, a company's ability to improve performance hinges on having available capacity.

Match these items. -Demand chase

Match these items. -Aggregate planning

Services that have high fixed costs and little marginal cost for additional customers, have developed more sophisticated approaches to leveling demand.

The use of contingent workers can

Introduction: Why Operations Management

Profitability: Business Success From Operations Success

Strategy and Value: Competing Through Operations

Processes: Turning Resources Into Capabilities

Cost: The Price of Value Creation

Quality: Meeting Customer Expectations

Quality Tools: From Process Performance to Process Perfection

Timeliness: Scheduling and Project Management

Supply Chain Management: Managing Business to Business Interactions

Demand Forecasting: Building the Foundation for Resource Planning

Inventory: Managing to Meet Demand

Logistics: Positioning Goods in the Supply Chain

Lean Systems: Eliminating Waste Through the Supply Chain

Constraint Management: Simplifying Complex Systems

Facilities: Making Location and Layout Decisions

Workforce: Optimizing Human Capital Printed

Filters

Exam 14: Capacity: Matching Productive Resources to Demand

Protective capacity

For many systems, the capacity of the constraint determines the capacity of the system.

Under the demand chase approach to aggregate planning, changes in production levels are dealt with:

Which of the following statements is true about capacity?

In most business settings, capacity is defined precisely in terms of a level of input per unit time.

In rough-cut capacity planning, available hours are calculated by

Which of the following statements identify the characteristics associated with constrained productive systems?

Under level production aggregate planning, changes in production levels are dealt with:

Match these items. -Design capacity

Capacity often has less an impact on ____ products or services can be produced than it has on ____ they can be produced.

In services, achieving the demand-capacity match often focuses on

Aggregate planning

Which of the following statements is not true about demand chase aggregate planning?

The ______ ________ aggregate plan deals with demand fluctuations through hiring and firing of employees.

In each of the time-related value attributes, a company's ability to improve performance hinges on having available capacity.

Match these items. -Demand chase

Match these items. -Aggregate planning

Services that have high fixed costs and little marginal cost for additional customers, have developed more sophisticated approaches to leveling demand.

The use of contingent workers can

Introduction: Why Operations Management

Profitability: Business Success From Operations Success

Strategy and Value: Competing Through Operations

Processes: Turning Resources Into Capabilities

Cost: The Price of Value Creation

Quality: Meeting Customer Expectations

Quality Tools: From Process Performance to Process Perfection

Timeliness: Scheduling and Project Management

Supply Chain Management: Managing Business to Business Interactions

Demand Forecasting: Building the Foundation for Resource Planning

Inventory: Managing to Meet Demand

Logistics: Positioning Goods in the Supply Chain

Lean Systems: Eliminating Waste Through the Supply Chain

Constraint Management: Simplifying Complex Systems

Facilities: Making Location and Layout Decisions

Workforce: Optimizing Human Capital Printed

Filters

Capacity often has less an impact on products or services can be produced than it has on they can be produced.

The __ aggregate plan deals with demand fluctuations through hiring and firing of employees.