Exam 14: Capacity: Matching Productive Resources to Demand

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Rough-cut capacity planning:

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A local bank has been using a level workforce of tellers five days a week, Monday through Friday. The tellers have considerable idle time on Tuesdays through Thursdays, with certain peak periods during the lunch hours and after 4:00 pm each day. On Monday mornings and Friday afternoons all tellers are extremely busy. During these times, customers wait for a significant amount of time in queues and some customers' leave before the service is provided. What options should this local bank consider for aggregate planning to better serve customers? How should the bank manager analyze these options and what data should be collected?

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Match these items. -Protective capacity

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For _____, a breakdown for a short amount of time is not serious because they are idle part of the time anyway.

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Purchased components can indirectly affect manufacturing capacity since their availability or unavailability can affect the firm's ability to utilize capacity as scheduled.

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At the _____ _____ ____, cost per unit are at their lowest.

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ABC copier is located in downtown Grand Rapids and is managed by 2 college students. Currently, the company owns two high-speed copiers that can be run by one operator. The 2 students work alone and therefore, the company operates two shifts per days (i.e. 8 hours a shift, 5 days a week). Each student takes a 15 minutes lunch/dinner break each day. In addition, they service the machine for 15 minutes at the beginning of each shift. The set up time depends on the job, on the other hand, the efficiency of the machines are estimated at 100 percent since they are new. The business at the copy center is great, orders keep pouring in. Use the information given below to calculate the normal daily capacity of ABC copier and to project next Monday's required capacity, based on the information given below: Job No. No. Of Copies Set up time (min) Run-time (min/unit) 1 1000 5 0.06 2 800 7 0.10 3 1200 6 0.12 4 5000 8 0.10 5 10000 10 0.14

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For a hotel, the best overbooking policy is the one that

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Capacity requirements planning:

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Match these items. -No shows

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_____ ____ has been considered as a means of leveling demand on health care facilities.

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Which of the following statements is true about the financial impact of capacity decisions?

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______ ________ is kept in reserve to deal with emergencies and disruptions.

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In the demand chase approach to aggregate planning, changes in production levels are typically dealt by hiring and laying off workers.

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In level production aggregate planning, when the combined quantity of inventory and production is unable to meet demand, which of the following actions could help match capacity to demand?

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In both manufacturers and services, capacity can be stored for later use.

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