Question 1

Utilization is the degree to which equipment,space,or labor is currently being used.

Accepted Answer

A) True 
 B)False

Question 2

In a manufacturing company,measuring capacity based on the number of machine-hours required to process a specific batch of production is an example of an output measure of capacity.

Accepted Answer

A) True 
 B)False

Question 3

Table 4.2
High Tech,Inc.is producing two types of products: A and B.Both are produced at the same sawing operation.Because of demand uncertainties,the operations manager obtained three demand forecasts (pessimistic,expected,and optimistic).The demand forecasts,batch sizes (units/batch),processing times (hr/unit),and setup times (hr/batch)follow.   The sawing machines operate on two 8-hour shifts,5 days per week,and 50 weeks per year.The manager wants to maintain a 10 percent capacity cushion.
-Using the information from Table 4.2,how many hours of capacity can the company expect from each of its sawing machines?

Accepted Answer

A) less than 3500 hours 
B) more than 3500 hours but less than 3700 hours 
C) more than 3700 hours but less than 3900 hours 
D) more than 3900 hours 
A) less than 3500 hours 
B) more than 3500 hours but less than 3700 hours 
C) more than 3700 hours but less than 3900 hours 
D) more than 3900 hours

Question 4

Which one of the following statements about capacity is best?

Accepted Answer

A) Companies with flexible flow processes tend to have small-capacity cushions. 
B) Companies with high capital costs tend to have large-capacity cushions. 
C) Companies that have considerable customization tend to have larger-capacity cushions. 
D) Constant demand rates require larger-capacity cushions. 
A) Companies with flexible flow processes tend to have small-capacity cushions. 
B) Companies with high capital costs tend to have large-capacity cushions. 
C) Companies that have considerable customization tend to have larger-capacity cushions. 
D) Constant demand rates require larger-capacity cushions.

Question 5

Table 4.2
High Tech,Inc.is producing two types of products: A and B.Both are produced at the same sawing operation.Because of demand uncertainties,the operations manager obtained three demand forecasts (pessimistic,expected,and optimistic).The demand forecasts,batch sizes (units/batch),processing times (hr/unit),and setup times (hr/batch)follow.   The sawing machines operate on two 8-hour shifts,5 days per week,and 50 weeks per year.The manager wants to maintain a 10 percent capacity cushion.
-Using the information from Table 4.2,what is the minimum total number of hours required of sawing equipment for the next year?

Accepted Answer

A) less than 85,000 hours 
B) more than 85,000 but less than 95,000 
C) more than 95,000 but less than 105,000 
D) more than 105,000 hours 
A) less than 85,000 hours 
B) more than 85,000 but less than 95,000 
C) more than 95,000 but less than 105,000 
D) more than 105,000 hours

Question 6

A wait-and-see strategy in regard to capacity is best characterized by

Accepted Answer

A) reducing the risks of over optimistic demand forecasts. 
B) using capacity as a competitive weapon in order to compete on cost. 
C) reducing the risks of lost sales due to capacity constraints. 
D) making large,infrequent jumps in capacity expansions. 
A) reducing the risks of over optimistic demand forecasts. 
B) using capacity as a competitive weapon in order to compete on cost. 
C) reducing the risks of lost sales due to capacity constraints. 
D) making large,infrequent jumps in capacity expansions.

Question 7

What information would managers use to choose the best cost-effective capacity to balance customer service with the cost of adding capacity?

Accepted Answer

A) decision trees 
B) economies of scale 
C) capacity cushion 
D) waiting line models 
A) decision trees 
B) economies of scale 
C) capacity cushion 
D) waiting line models

Question 8

Which one of the following statements about capacity is best?

Accepted Answer

A) Capacity is the average rate of output for a facility. 
B) Short-term capacity plans deal with investments in new facilities and equipment. 
C) A line flow process usually measures its capacity in terms of output rates. 
D) The utilization rate is expressed as the ratio of maximum output rate to capacity. 
A) Capacity is the average rate of output for a facility. 
B) Short-term capacity plans deal with investments in new facilities and equipment. 
C) A line flow process usually measures its capacity in terms of output rates. 
D) The utilization rate is expressed as the ratio of maximum output rate to capacity.

Question 9

Equipment breakdowns are an example of an internal,random form of variability.

Accepted Answer

A) True 
 B)False

Question 10

According to the theory of constraints (TOC),the role of work-in-process inventory is to dictate the pace that specific items are pulled through the process.

Accepted Answer

A) True 
 B)False

Question 11

Up,Up & Away is a producer of kites and windsocks.Relevant data concerning their production for the upcoming fiscal year are as follows:   Assume: 1 shift/day,8 hours/shift,5 days/week,and 50 weeks/year.
There currently are four machines,and management wants a capacity cushion of 20 percent.
Which of the following alternatives will enable Up,Up & Away to meet all of the upcoming year's demand using the minimum number of machines?

Accepted Answer

A) add six additional machines 
B) add five additional machines 
C) add four additional machines 
D) add three additional machines 
A) add six additional machines 
B) add five additional machines 
C) add four additional machines 
D) add three additional machines

Question 12

A decision tree is a schematic model of alternatives available to the decision maker,along with their possible consequences.

Accepted Answer

A) True 
 B)False

Question 13

The maximum output that can reasonably be sustained under normal conditions is the capacity cushion for a process.

Accepted Answer

A) True 
 B)False

Question 14

Output measures are the usual choice for high-volume processes that produce only a limited range of similar products or services,usually expressed in terms of output over a period of time.

Accepted Answer

A) True 
 B)False

Question 15

Wait time is not part of the throughput time for a specific item as it moves through a process.

Accepted Answer

A) True 
 B)False

Question 16

If a system is well balanced,which one of the following changes usually calls for a larger-capacity cushion?

Accepted Answer

A) higher capital intensity 
B) higher worker flexibility 
C) higher inventories 
D) requests for fast delivery times 
A) higher capital intensity 
B) higher worker flexibility 
C) higher inventories 
D) requests for fast delivery times

Question 17

Managers of line flow process facilities with high-volume production capability tend to express capacity in terms of

Accepted Answer

A) output measures. 
B) maximum input rate. 
C) number of input units. 
D) maximum utilization rate. 
A) output measures. 
B) maximum input rate. 
C) number of input units. 
D) maximum utilization rate.

Question 18

A capacity cushion is the amount of inventory that a firm maintains to handle sudden increases in demand or temporary loss of production capacity.

Accepted Answer

A) True 
 B)False

Question 19

Table 4.3
The North Bend Manufacturing Company is producing two types of products,A and B.Demand forecasts for next year and other production-related information are provided in the following table:   Both products A and B are produced at the same operation called MASAC27A.
-Use the information in Table 4.3 to help answer this question.Currently,the company has 12 MASAC27A machines,and financial constraints prevent any expansion for the next year.Which one of the following alternatives will allow next year's demand to be fully covered?

Accepted Answer

A) Do nothing. 
B) Increase the capacity cushion to 30 percent. 
C) Increase the batch size of product B to 300 units. 
D) Decrease the capacity cushion by 1 percent. 
A) Do nothing. 
B) Increase the capacity cushion to 30 percent. 
C) Increase the batch size of product B to 300 units. 
D) Decrease the capacity cushion by 1 percent.

Question 20

Input measures are generally used as a capacity measure for high-volume processes.

Accepted Answer

A) True 
 B)False

Utilization is the degree to which equipment,space,or labor is currently being used.

In a manufacturing company,measuring capacity based on the number of machine-hours required to process a specific batch of production is an example of an output measure of capacity.

Which one of the following statements about capacity is best?

A wait-and-see strategy in regard to capacity is best characterized by

What information would managers use to choose the best cost-effective capacity to balance customer service with the cost of adding capacity?

Which one of the following statements about capacity is best?

Equipment breakdowns are an example of an internal,random form of variability.

According to the theory of constraints (TOC),the role of work-in-process inventory is to dictate the pace that specific items are pulled through the process.

A decision tree is a schematic model of alternatives available to the decision maker,along with their possible consequences.

The maximum output that can reasonably be sustained under normal conditions is the capacity cushion for a process.

Output measures are the usual choice for high-volume processes that produce only a limited range of similar products or services,usually expressed in terms of output over a period of time.

Wait time is not part of the throughput time for a specific item as it moves through a process.

If a system is well balanced,which one of the following changes usually calls for a larger-capacity cushion?

Managers of line flow process facilities with high-volume production capability tend to express capacity in terms of

A capacity cushion is the amount of inventory that a firm maintains to handle sudden increases in demand or temporary loss of production capacity.

Input measures are generally used as a capacity measure for high-volume processes.

Creating Customer Value Through Operations

Supply Chain Management

Process Configuration

Inventory Management

Quality and Process Improvement

Lean Systems

Managing Projects

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Resource Planning

Waiting Lines

Decision Making

Financial Analysis

Work Measurement

Learning Curve Analysis

Computer-Integrated Manufacturing

Acceptance Sampling Plans

Simulation

Special Inventory Models

Linear Programming

Filters

Exam 4: Capacity

Utilization is the degree to which equipment,space,or labor is currently being used.

In a manufacturing company,measuring capacity based on the number of machine-hours required to process a specific batch of production is an example of an output measure of capacity.

Which one of the following statements about capacity is best?

A wait-and-see strategy in regard to capacity is best characterized by

What information would managers use to choose the best cost-effective capacity to balance customer service with the cost of adding capacity?

Which one of the following statements about capacity is best?

Equipment breakdowns are an example of an internal,random form of variability.

According to the theory of constraints (TOC),the role of work-in-process inventory is to dictate the pace that specific items are pulled through the process.

A decision tree is a schematic model of alternatives available to the decision maker,along with their possible consequences.

The maximum output that can reasonably be sustained under normal conditions is the capacity cushion for a process.

Output measures are the usual choice for high-volume processes that produce only a limited range of similar products or services,usually expressed in terms of output over a period of time.

Wait time is not part of the throughput time for a specific item as it moves through a process.

If a system is well balanced,which one of the following changes usually calls for a larger-capacity cushion?

Managers of line flow process facilities with high-volume production capability tend to express capacity in terms of

A capacity cushion is the amount of inventory that a firm maintains to handle sudden increases in demand or temporary loss of production capacity.

Input measures are generally used as a capacity measure for high-volume processes.

Creating Customer Value Through Operations

Supply Chain Management

Process Configuration

Inventory Management

Quality and Process Improvement

Lean Systems

Managing Projects

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Resource Planning

Waiting Lines

Decision Making

Financial Analysis

Work Measurement

Learning Curve Analysis

Computer-Integrated Manufacturing

Acceptance Sampling Plans

Simulation

Special Inventory Models

Linear Programming

Filters