Exam 10: Capacity Management

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Focused factories are often devoted to a specific technology or particular market segments or customers.

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True

All the following are means to manage capacity by shifting and stimulating demand except

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D

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

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Offering complementary goods or services is an example of a short-term capacity strategy.

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An assembly line normally operates two shifts a day, five days per week. The planned capacity of the assembly line is 380 units/shift. Determine the average safety capacity if 700 items are assembled a day, on average.

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Giving customers information on the best time to call a service center is purely an advertising and promotion strategy.

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A measure of capacity is the number of seats on an airplane per flight.

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An organization that would typically use a revenue management system is

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C&M Machining is developing plans for a dedicated production line and needs to determine how many drill presses will be needed. Engineering estimates are that one drill press will be able to process 120 parts per hour. Daily demand is 2400 parts. C&M operates one 8 hour shift per day. How many drill presses are needed to meet the capacity requirements?

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Define capacity including the two ways it can be viewed. Provide an example of each way.

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Discuss the following: a.Approaches to adjust short-term capacity b.Approaches for shifting and stimulating demand

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

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C&M Machining is developing plans for a dedicated production line and needs to determine how many drill presses will be needed. Engineering estimates are that one drill press will be able to process 120 parts per hour. Daily demand is 2,400 parts. C&M operates one 8 hour shift per day. How many drill presses are needed to meet the capacity requirements?

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A machine in a job shop is used for only two parts, A and B. The time per setup in minutes), processing time in seconds), order size in units) is given below. Using the information, determine the total capacity required for this machine in minutes. Part Machine Setup Time minutes) Processing Time seconds) Order Size units) A 55 54 600 B 30 64 700

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A physical constraint is associated with the capacity of a resource.

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Reservations reduce risks for customers but provide little benefit for service providers.

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All the following are means to adjust short-term capacity except

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Constraints determine the throughput of a facility.

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

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

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