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12 Cards in this Set
- Front
- Back
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Expected output is sometimes referred to as rated capacity. TrueFalse |
True |
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Price changes are useful for matching the level of demand to the capacity of a facility. TrueFalse |
True |
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Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched? lower resort hotel room prices on Wednesdays appointments reservations first-come, first-served rule None of these |
lower resort hotel room prices on Wednesdays |
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Utilization will always be lower than efficiency because: effective capacity is less than design capacity. effective capacity is greater than design capacity. effective capacity equals design capacity. expected output is less than actual output. expected output is less than rated capacity. |
effective capacity is less than design capacity. |
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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? 5100 5700 4845 969 6783 |
4845 |
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The bottleneck time is always at least as long as the throughput time. TrueFalse |
False |
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Which of the following is not one of the four principles of bottleneck management? Release work orders to the system at the bottleneck's capacity pace. Lost time at the bottleneck is lost system capacity. Increasing capacity at non-bottleneck stations is a mirage. Increased bottleneck capacity is increased system capacity. Bottlenecks should be moved to the end of the system process. |
Bottlenecks should be moved to the end of the system process. |
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TOC strives to reduce the effect of constraints by: offloading work from constrained workstations. increasing constrained workstation capability. changing workstation order to reduce throughput time. offloading work from constrained workstations and increasing constrained workstation capability offloading work from constrained workstations, increasing constrained workstation capability, and changing workstation order to reduce throughput time |
offloading work from constrained workstations and increasing constrained workstation capability |
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Which of the following techniques is NOT a technique for dealing with a bottleneck? Schedule throughput to match the capacity of the bottleneck. Increase the capacity of the constraint.Have cross-trained employees available to keep the constraint at full operation. Develop alternate routings. All are techniques for dealing with bottlenecks. |
All are techniques for dealing with bottlenecks. |
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Which of the following costs would be incurred even if no units were produced? raw material costs direct labor costs transportation costs building rental costs purchasing costs |
building rental costs |
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Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per unit. What is the break-even point for machine A? $90,000 dollars 90,000 units $15,000 dollars 15,000 units 4,286 units |
15,000 units |
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Of the four approaches to capacity expansion, the approach that "straddles" demand: uses incremental expansion.uses one-step expansion. at some times leads demand, and at other times lags. works best when demand is not growing but is stable. Choices uses incremental expansion and at some times leads demand, and at other times lags are both correct. |
Choices uses incremental expansion and at some times leads demand, and at other times lags are both correct. |
