Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

The Theory of Constraints focuses on eliminating all bottleneck activities in a process.

Accepted Answer

A) True 
 B)False

Question 3

Lumeris Inc.,an automobile manufacturer,has an inflexible work schedule and requires its workers to work nine hours a day and six days a week.Its laborers do not have adequate skills to perform their job efficiently.The inflexible work schedule and inadequate labor skills are examples of _____.

Accepted Answer

A)   physical constraints
B)   nonphysical constraints
C)   bottleneck activities
D)   work ordersE) B) and D)
F) None of the above

Question 4

The ideas and methods surrounding a revenue management system are often called yield management.

Accepted Answer

A) True 
 B)False

Question 5

In the context of strategies for expanding capacity,which of the following statements is true of one large capacity increase?

Accepted Answer

A)   This strategy aims to match capacity additions with demand as closely as possible.
B)   An advantage of using this strategy is that the fixed costs of construction and operating system setup need to be incurred only once.
C)   This strategy waits until demand has increased to a point where additional capacity is necessary.
D)   When this strategy is used,there is always excess capacity and safety capacity to meet unexpected demand from large orders is provided.E) B) and C)
F) A) and B)

Question 6

Diseconomies of scale are known as the capacity cushion.

Accepted Answer

A) True 
 B)False

Question 7

At Rues and West Bros.,a spare parts manufacturing company,the most important competitive priority is quality.Only a few key spare parts are produced using similar process designs.In this scenario,Rues and West Bros._____.

Accepted Answer

A)   is a focused factory
B)   has no throughput
C)   is an unfocused factory
D)   uses a mass customization strategyE) A) and C)
F) A) and D)

Question 8

Which of the following statements is true of setup time?

Accepted Answer

A)   It is independent of order size for manufacturing work orders.
B)   It varies with the volume of work orders.
C)   It is the most insignificant part of total system capacity.
D)   It is usually the same for manufacturing and service-providing applications.E) None of the above
F) A) and B)

Question 9

The earliest revenue management systems focused solely on _____.

Accepted Answer

A)   forecasting
B)   overbooking
C)   allocation
D)   pricingE) A) and B)
F) A) and C)

Question 10

Average safety capacity (%) is computed using the formula:

Accepted Answer

A)   Average resource utilization (%) − 100%.
B)   100% − Average resource utilization (%) .
C)   [Maximum safety capacity (%) + Minimum safety capacity (%) ]/2.
D)   100% − Maximum resource utilization (%) .E) None of the above
F) All of the above

Question 11

In the Theory of Constraints,constraints determine the throughput of a facility.

Accepted Answer

A) True 
 B)False

Question 12

Unlike a focused factory,an unfocused factory is characterized by:

Accepted Answer

A)   a few key products.
B)   particular market segments.
C)   identical people skills.
D)   dissimilar product lines.E) B) and C)
F) A) and D)

Question 13

Nonbottleneck management principles differ from bottleneck management principles because according to nonbottleneck management principles,_____.

Accepted Answer

A)   idle time is acceptable if there is no work to do
B)   an hour lost at a nonbottleneck resource is an hour lost for the entire process or factory output
C)   large order sizes should be used to minimize setup time and maximize resource utilization
D)   the input should always exceed the capacityE) C) and D)
F) A) and B)

Question 14

A capacity _____ strategy is a strategy for expanding capacity that waits until demand has increased to a point where additional capacity is necessary.

Accepted Answer

A)   lag
B)   lead
C)   reduction
D)   matchE) C) and D)
F) B) and D)

Exam 10: Capacity Management

In the context of strategies for expanding capacity,which of the following statements is true of one large capacity increase?

Correct Answer
verified

The ideas and methods surrounding a revenue management system are often called yield management.

Correct Answer
verified

Unlike a focused factory,an unfocused factory is characterized by:

Correct Answer
verified

The earliest revenue management systems focused solely on _____.

Correct Answer
verified

Which of the following statements is true of setup time?

Correct Answer
verified

Average safety capacity (%) is computed using the formula:

Correct Answer
verified

Diseconomies of scale are known as the capacity cushion.

Correct Answer
verified

In the Theory of Constraints,constraints determine the throughput of a facility.

Correct Answer
verified

At Rues and West Bros.,a spare parts manufacturing company,the most important competitive priority is quality.Only a few key spare parts are produced using similar process designs.In this scenario,Rues and West Bros._____.

Correct Answer
verified

Lumeris Inc.,an automobile manufacturer,has an inflexible work schedule and requires its workers to work nine hours a day and six days a week.Its laborers do not have adequate skills to perform their job efficiently.The inflexible work schedule and inadequate labor skills are examples of _____.

Correct Answer
verified

Nonbottleneck management principles differ from bottleneck management principles because according to nonbottleneck management principles,_____.

Correct Answer
verified

The Theory of Constraints focuses on eliminating all bottleneck activities in a process.

Correct Answer
verified

A capacity _____ strategy is a strategy for expanding capacity that waits until demand has increased to a point where additional capacity is necessary.

Correct Answer
verified

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

Correct Answer
verified

Exam 10: Capacity Management

In the context of strategies for expanding capacity,which of the following statements is true of one large capacity increase?

Correct AnswerverifiedShow Answer

The ideas and methods surrounding a revenue management system are often called yield management.

Correct AnswerverifiedShow Answer

Unlike a focused factory,an unfocused factory is characterized by:

Correct AnswerverifiedShow Answer

The earliest revenue management systems focused solely on _____.

Correct AnswerverifiedShow Answer

Which of the following statements is true of setup time?

Correct AnswerverifiedShow Answer

Average safety capacity (%) is computed using the formula:

Correct AnswerverifiedShow Answer

Diseconomies of scale are known as the capacity cushion.

Correct AnswerverifiedShow Answer

In the Theory of Constraints,constraints determine the throughput of a facility.

Correct AnswerverifiedShow Answer

At Rues and West Bros.,a spare parts manufacturing company,the most important competitive priority is quality.Only a few key spare parts are produced using similar process designs.In this scenario,Rues and West Bros._____.

Correct AnswerverifiedShow Answer

Lumeris Inc.,an automobile manufacturer,has an inflexible work schedule and requires its workers to work nine hours a day and six days a week.Its laborers do not have adequate skills to perform their job efficiently.The inflexible work schedule and inadequate labor skills are examples of _____.

Correct AnswerverifiedShow Answer

Nonbottleneck management principles differ from bottleneck management principles because according to nonbottleneck management principles,_____.

Correct AnswerverifiedShow Answer

The Theory of Constraints focuses on eliminating all bottleneck activities in a process.

Correct AnswerverifiedShow Answer

A capacity _____ strategy is a strategy for expanding capacity that waits until demand has increased to a point where additional capacity is necessary.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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