Exam 10: Capacity Management

The capacity expansion approach that provides the most safety capacity is

An unsold broadcast advertising space is an example of a perishable asset.

A capacity straddle strategy is related to

When the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases, it is called ____

An example of safety capacity would be planning additional capacity to account for employee summer vacations.

A doctor's office would charge no-show patients $30 if they did not cancel their appointment 24 hours ahead of the appointment because

For a non-bottleneck activity,

Safety capacity or a capacity cushion is

Chapter 10 describes how a clogged court system tried to solve the bottleneck problem regarding the processing of tens of thousands of foreclosures by

Define a Revenue Management System (RMS) and explain how it works.Give several examples of assets that can be managed using an RMS.

An organization that would typically use a revenue management system is

Capacity costs depend primarily on annual operating and maintenance costs.

Complementary goods or services balance seasonal demand cycles and therefore use excess capacity available.

In service organizations, capacity is more often viewed as ____

Complementary goods and services are those that require different resources than the organization's other goods and services.

Safety capacity is most closely related to

Short-term capacity decisions usually involve adjusting schedules or staffing levels.

In calculating required capacity for a job shop, setup time is a significant factor.

Define Economies of Scale and Diseconomies of Scale.Explain how they relate to capacity decisions.

Revenue management systems are vital to most manufacturing organizations.