Question 1

In the service sector,scheduling customers is ________,and scheduling the workforce is ________.

Accepted Answer

demand management;capacity management

Question 2

Multiproduct break-even analysis calculates the ________ of each product,________ it in proportion to each product's share of total sales.

Accepted Answer

contribution;weighting

Question 3

________ is a means of determining the discounted value of a series of future cash receipts.

Accepted Answer

Net present value or NPV

Question 4

________ is actual output as a percent of design capacity.

Accepted Answer

The answer of ________ is actual output as a percent...

Question 5

A work system has five stations that have process times of 5,9,4,9,and 8.What is the process cycle time of the system?

Accepted Answer

A) 4 
B) 9 
C) 18 
D) 35 
E) 48 
A) 4 
B) 9 
C) 18 
D) 35 
E) 48

Question 6

Expected output is sometimes referred to as rated capacity.

Accepted Answer

A) True 
 B)False

Question 7

A useful tactic for increasing capacity is to redesign a product in order to get more throughput.

Accepted Answer

A) True 
 B)False

Question 8

Christopher's Cranks uses a machine that can produce 100 cranks per hour.The firm operates 12 hours per day,five days per week.Due to regularly scheduled preventive maintenance,the firm expects the machine to be running during approximately 95% of the available time.Based on experience with other products,the firm expects to achieve an efficiency level for the cranks of 85%.What is the expected weekly output of cranks for this company?

Accepted Answer

A) 5100 
B) 5700 
C) 4845 
D) 969 
E) 6783 
A) 5100 
B) 5700 
C) 4845 
D) 969 
E) 6783

Question 9

Define variable costs.What special assumption is made about variable costs in the textbook?

Accepted Answer

Variable costs are t

Question 10

The process time of a system is equivalent to the

Accepted Answer

A) process time of the bottleneck. 
B) sum of all workstation times. 
C) shortest workstation time. 
D) mean workstation time. 
E) median workstation time. 
A) process time of the bottleneck. 
B) sum of all workstation times. 
C) shortest workstation time. 
D) mean workstation time. 
E) median workstation time.

Question 11

Price changes are useful for matching the level of demand to the capacity of a facility.

Accepted Answer

A) True 
 B)False

Question 12

Break-even analysis can be used by a firm that produces more than one product,but

Accepted Answer

A) the results are estimates,not exact values. 
B) the firm must allocate some fixed cost to each of the products. 
C) each product has its own break-even point. 
D) the break-even point depends upon the proportion of sales generated by each of the products. 
E) the results are never accurate. 
A) the results are estimates,not exact values. 
B) the firm must allocate some fixed cost to each of the products. 
C) each product has its own break-even point. 
D) the break-even point depends upon the proportion of sales generated by each of the products. 
E) the results are never accurate.

Question 13

Which of the following is false regarding capacity expansion?

Accepted Answer

A) "Average" capacity sometimes leads demand,sometimes lags it. 
B) If "lagging" capacity is chosen,excess demand can be met with overtime or subcontracting. 
C) Total cost comparisons are a rather direct method of comparing capacity alternatives. 
D) Capacity may only be added in large chunks. 
E) All of the above are true. 
A) "Average" capacity sometimes leads demand,sometimes lags it. 
B) If "lagging" capacity is chosen,excess demand can be met with overtime or subcontracting. 
C) Total cost comparisons are a rather direct method of comparing capacity alternatives. 
D) Capacity may only be added in large chunks. 
E) All of the above are true.

Question 14

The staff training centre at a large regional hospital provides training sessions in CPR to all employees.Assume that the capacity of this training system was designed to be 1200 employees per year.Since the training centre was first put in use,the program has become more complex,so that 1050 now represents the most employees that can be trained per year.In the past year,950 employees were trained.The efficiency of this system is approximately ________ and its utilization is approximately ________.

Accepted Answer

A) 79.2%;90.5% 
B) 90.5%;79.2% 
C) 87.5%;950 employees 
D) 950 employees;1050 employees 
E) 110.5%;114.3% 
A) 79.2%;90.5% 
B) 90.5%;79.2% 
C) 87.5%;950 employees 
D) 950 employees;1050 employees 
E) 110.5%;114.3%

Question 15

The theory of constraints is a body of knowledge that deals with anything that limits an organization's ability to achieve its goals.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following costs would be incurred even if no units were produced?

Accepted Answer

A) raw material costs 
B) direct labour costs 
C) transportation costs 
D) building rental costs 
E) purchasing costs 
A) raw material costs 
B) direct labour costs 
C) transportation costs 
D) building rental costs 
E) purchasing costs

Question 17

How is break-even analysis useful in the study of the capacity decision? What limitations does this analytical tool have in this application?

Accepted Answer

Breakeven is defined as the volume for w

Question 18

A firm is about to undertake the manufacture of a product,and is weighing three capacity alternatives: small job shop,large job shop,and repetitive manufacturing.The small job shop has fixed costs of $3,000 per month,and variable costs of $10 per unit.The larger job shop has fixed costs of $12,000 per month and variable costs of $3 per unit.The repetitive manufacturing plant has fixed costs of $30,000 and variable costs of $1 per unit.Demand for the product is expected to be 1,000 units per month with "moderate" market acceptance,but 2,000 under "strong" market acceptance.The probability of moderate acceptance is estimated to be 60%;strong acceptance has a probability of 40%.The product will sell for $25 per unit regardless of the capacity decision.Which capacity choice should the firm make?

Accepted Answer

The payoffs are as follows: small job sh

Question 19

What is sometimes referred to as rated capacity?

Accepted Answer

A) efficiency 
B) utilization 
C) effective capacity 
D) expected output 
E) design capacity 
A) efficiency 
B) utilization 
C) effective capacity 
D) expected output 
E) design capacity

Question 20

Distinguish between utilization and efficiency.

Accepted Answer

Both are ratios,not item counts.Both use

Exam 19: Capacity and Constraint Management

In the service sector,scheduling customers is ________,and scheduling the workforce is ________.

Multiproduct break-even analysis calculates the ________ of each product,________ it in proportion to each product's share of total sales.

________ is a means of determining the discounted value of a series of future cash receipts.

________ is actual output as a percent of design capacity.

A work system has five stations that have process times of 5,9,4,9,and 8.What is the process cycle time of the system?

Expected output is sometimes referred to as rated capacity.

A useful tactic for increasing capacity is to redesign a product in order to get more throughput.

Define variable costs.What special assumption is made about variable costs in the textbook?

The process time of a system is equivalent to the

Price changes are useful for matching the level of demand to the capacity of a facility.

Break-even analysis can be used by a firm that produces more than one product,but

Which of the following is false regarding capacity expansion?

The theory of constraints is a body of knowledge that deals with anything that limits an organization's ability to achieve its goals.

Which of the following costs would be incurred even if no units were produced?

How is break-even analysis useful in the study of the capacity decision? What limitations does this analytical tool have in this application?

What is sometimes referred to as rated capacity?

Distinguish between utilization and efficiency.

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Statistical Process Control

Process Strategy and Sustainability

Location Strategies

Layout Strategies

Human Resources,job Design,and Work Measurement

Supply-Chain Management

Outsourcing As a Supply-Chain Strategy

Inventory Management

Aggregate Planning

Material Requirements Planning Mrpand Erp

Short-Term Scheduling

Jit and Lean Operations

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters

In the service sector,scheduling customers is ,and scheduling the workforce is .

Multiproduct break-even analysis calculates the of each product, it in proportion to each product's share of total sales.