Chapter 10

What are the two ways capacity can be viewed?

Amount of overtime scheduled for the next week would be considered a Short--term capacity issue

True

False

Number of call center workers to staff during the holiday season would be considered a long-term capacity issue.

True

False

Buying a new printing press for a publishing company would be considered a long-term capacity issue.

True

False

Hiring temporary staff for the holiday season would be considered a long-term capacity issue?

True

False

Number of branch banks to establish in a new market territory would be considered a long-term issue?

True

False

What is the difference between economies of scale and diseconomies of scale

Define and provide an example of set-up time

Define and provide an example of processing time

Between processing time and set up time, which one do most companies try to reduce as much as possible?

Processing time

Set up time

What are complementary goods and services and provide an example of the term

Out of the following what are some ways to manage capacity by shifting and stimulating demand?

Providing a complimentary good/ service

Vary the price of the goods or services

Provide customers information

Offering free/ trail samples of a good/service

Advertising and promotion

Adding peripheral goods/services

Revenue management system

What is another name for a non-bottleneck work activity?

What is an example of a physical constraint

What is an example of a non-physical constraint

Which of the following are non-bottleneck management principles?

Move jobs through the workstation as fast as possible

Idle time is acceptable if there is no work to do.

Critical to achieving process and factory objectives and should be scheduled first.

An hour lost at a non-bottleneck resource is an hour lost for the entire process or factory output.

Use smaller order sizes (transfer batches).

Work-in-process buffer inventory should be placed in front of non-bottlenecks to maximize resource utilization at the non-bottleneck.

An hour lost at a non-bottleneck resource has no effect on total process or factory output and incurs no real cost.

Non-bottleneck workstations should work at all times to maximize throughput and resource utilization so as to generate cash from sales and achieve the company’s goal.

Which of the following are bottleneck management principles?

Critical to achieving process and factory objectives and should be scheduled first.

Use large order sizes at bottleneck workstations to minimize setup time and maximize resource utilization.

Use smaller order sizes (transfer batches).

An hour lost at a bottleneck resource has no effect on total process or factory output and incurs no real cost.

An hour lost at a bottleneck resource is an hour lost for the entire process or factory output.

Work-in-process buffer inventory should be placed in front of bottlenecks to maximize resource utilization at the non-bottleneck.

Bottleneck workstations should work at all times to maximize throughput and resource utilization so as to generate cash from sales and achieve the company’s goal.

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