CHAPTER 10- CAPACITY MANAGEMENT

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CHAPTER 10: CAPACITY MANAGEMENT Which strategy for expanding capacity is characterized by wai6ng un6l demand rises to an extent where more capacity is needed? a.Capacity lag strategy b.Capacity reduc6on strategy c.Capacity lead strategy d.Capacity match strategy A A den6stry prac6ce charges pa6ents $30 who don't cancel their appointment at least 24 hours before their scheduled appointment and subsequently do not show up. With this informa6on in mind, choose the appropriate system or strategy that could manage the prac6ce's idle service capacity risk. a.A capacity lag strategy b.A revenue management system c.A capacity straddle strategy d.A pull system B Suppose you want to shiJ and s6mulate demand to manage capacity. Which of the following methods below would allow you to accomplish this? a.Changing labor skill mix b.Changing labor schedules c.Adding or sharing equipment d.Adding peripheral goods and/or services D Socialite Resorts is a leading chain of resorts throughout the Caribbean. Their managers reserve 40% of the suites available exclusively to members of their rewards network. They also offer the suites at subsidized prices to these members. Given this scenario, choose the revenue management system component most likely used by Socialite Resorts. a.Alloca6on b.Capacity expansion c.Capacity sharing d.Investment A

CHAPTER 10: CAPACITY MANAGEMENT Suppose you wanted to manage capacity by altering short-term capacity levels. Of the choices provided, which one is a way you could do this? a.Adding peripheral goods and/or services b.ShiJing work to slack periods c.Providing reserva6ons d.Varying the price of goods or services B Excellent Balls Inc., a soccer ball manufacturing company, adheres to a policy of manufacturing soccer balls only when the demand is greater than the amount of goods already manufactured. In this scenario, Excellent Balls Inc. most likely uses a ________ to expand its capacity. a.capacity reduc6on strategy b.capacity lag strategy c.capacity straddle strategy d.capacity lead strategy B Capacity is frequently perceived as the ________ in service industries. a.amount of setup 6me b.units of resource availability c.minimum rate of output per unit 6me d.amount of over6me scheduled B Which statement is the most accurate regarding setup 6me? a.It is usually the same for manufacturing and service-providing applica6ons. b.It is independent of order size for manufacturing work orders. c.It varies with the volume of work orders. d.It is the most insignificant part of total system capacity. B Consider strategies for expanding capacity. Suppose you were to employ a single, large capacity increase. Which statement is the most accurate regarding this strategy? a.This strategy waits un6l demand has increased to a point where addi6onal capacity is necessary. b.An advantage of using this strategy is that the fixed costs of construc6on and opera6ng system setup need to be incurred only once. c.When this strategy is used, there is always excess capacity and safety capacity to meet unexpected demand from large orders is provided. d.This strategy aims to match capacity addi6ons with demand as closely as possible. B

CHAPTER 10: CAPACITY MANAGEMENT The chief dissimilarity between unfocused factories and focused factories is that unfocused factories have _______. a.iden6cal people skills b.a few key products c.dissimilar product lines d.par6cular market segments C Black Gold Inc. owns 800 petroleum refining pumps. Of those, 640 are u6lized over the course of a calendar year. Therefore, the u6liza6on of petroleum refining pumps at Black Gold Inc. is _______. a.1.00 b.0.75 c.1.25 d.0.80 D Bob has a business that needs a revenue management system. There are several to choose from, and he wants to make sure the elements that comprise the system coincide with the func6onality of his business. A couple elements the system needs to account for are forecas6ng and alloca6on. A couple other elements needed are overbooking and pricing. If all these elements were to work together in unison, Bob's objec6ve must be to _______. a.maximize the revenue generated by a perishable asset b.determine the single price that needs to be charged to all customers c.manage a nonperishable asset d.meet the future demand of goods and services A Gregarious Tux has an excess of equipment for manufacturing tuxedos during 6mes of regular demand, so they can be prepared for abrupt demand surges. They also have a reserve of produced goods in the event of a material shortage. In this scenario, what are the excess equipment and produced goods examples of? a.A physical constraint b.The capacity cushion c.Overbooking d.Capacity straddle B Smooth Threads is a wedding dress manufacturing factory. A consultant was brought in to determine their average yearly resource u6liza6on. AJer extensive analysis, this value was discovered to be 70%. Therefore, the average safety capacity of Smooth Threads is _______. a.40% b.20% c.30%

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CHAPTER 10: CAPACITY MANAGEMENT d.50% C Which of the following choices describes the phenomenon where the mean unit cost of a service or good begins to rise concurrent to an increase in capacity or volume of throughput? a.Diseconomies of scale b.Nonphysical constraints c.Demand lags d.Economies of scale A Heavenly Mana Laboratories is a group of companies with a worldwide reach, manufacturing considerable quan66es of a migraine-suppressing prescrip6on drug. The setup 6me for manufacturing the drug is 275 minutes, the processing 6me is 12 minutes, and the order size is 500 units. Given this informa6on, choose the correct amount of total 6me necessary to meet the provided produc6on volume? a.4275 minutes b.775 minutes c.6000 minutes d.6275 minutes D 275 + (12 * 500) Choose the defini6on that best describes throughput within the context of tradi6onal opera6ons management. a.Anything in an organiza6on that limits it from moving toward its goal b.The average number of goods or services completed per 6me period by a process c.Associated with the capacity of a resource such as a machine, employee, or worksta6on d.A physical ac6vity in which idle capacity exists B Consider strategies for expanding capacity. Suppose you were to employ a single, large capacity increase. Which statement is the most accurate regarding this strategy? An advantage of using this strategy is that the fixed costs of construc6on and opera6ng system setup need to be incurred only once. Which of the following choices describes the phenomenon where the mean unit cost of a service or good begins to rise concurrent to an increase in capacity or volume of throughput? Diseconomies of scale

CHAPTER 10: CAPACITY MANAGEMENT Which statement is the most accurate regarding setup 6me? It is independent of order size for manufacturing work orders. Smooth Threads is a wedding dress manufacturing factory. A consultant was brought in to determine their average yearly resource u6liza6on. AJer extensive analysis, this value was discovered to be 80%. Therefore, the average safety capacity of Smooth Threads is _______. 20% Gregarious Tux has an excess of equipment for manufacturing tuxedos during 6mes of regular demand, so they can be prepared for abrupt demand surges. They also have a reserve of produced goods in the event of a material shortage. In this scenario, what are the excess equipment and produced goods examples of? The capacity cushion Excellent Balls Inc., a soccer ball manufacturing company, adheres to a policy of manufacturing soccer balls only when the demand is greater than the amount of goods already manufactured. In this scenario, Excellent Balls Inc. most likely uses a ________ to expand its capacity. capacity lag strategy A den6stry prac6ce charges pa6ents $30 who don't cancel their appointment at least 24 hours before their scheduled appointment and subsequently do not show up. With this informa6on in mind, choose the appropriate system or strategy that could manage the prac6ce's idle service capacity risk. A revenue management system The chief dissimilarity between unfocused factories and focused factories is that unfocused factories have ________. dissimilar product lines Heavenly Mana Laboratories is a group of companies with a worldwide reach, manufacturing considerable quan66es of a migraine-suppressing prescrip6on drug. The setup 6me for manufacturing the drug is 275 minutes, the processing 6me is 8 minutes, and the order size is 500 units. Given this informa6on, choose the correct amount of total 6me necessary to meet the provided produc6on volume? 4275 minutes 275+ (500*8) _____ occur when the average unit cost of a good or service begins to increase as the capacity and/or volume of throughput increases. Diseconomies of scale

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