Exam 19: Capacity and Constraint Management

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

A good capacity decision requires that it be tightly integrated with the organization's strategy and investments.But there are other "considerations" to making a good capacity decision.Name them.Describe each in a sentence or two.

Some organizations use number of beds,number of rooms,or room size to measure capacity.There's no time period in this capacity,and no "throughput." Why are these firms using such a different concept of capacity?

Define fixed costs.

A firm is weighing three capacity alternatives: small,medium,and large job shop.Whatever capacity choice is made,the market for the firm's product can be "moderate" or "strong." The probability of moderate acceptance is estimated to be 40%;strong acceptance has a probability of 60%.The payoffs are as follows.Small job shop,moderate market = $24,000;Small job shop,strong market = $54,000.Medium job shop,moderate market = $20,000;medium job shop,strong market = $64,000.Large job shop,moderate market = -$2,000;large job shop,strong market = $96,000.Which capacity choice should the firm make?

Identify,in proper sequence,the steps in the process of recognizing and managing constraints.

________ cost is the cost that continues even if no units are produced.