OM3_Ch_10 - Chapter 10Capacity Management TRUE/FALSE 1 A...

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Chapter 10—Capacity Management TRUE/FALSE 1. A measure of capacity is the number of seats on an airplane per flight. ANS: T PTS: 1 2. A formal definition of capacity is the average rate of output per unit of time. ANS: F PTS: 1 3. Short-term capacity decisions usually involve adjusting schedules or staffing levels. ANS: T PTS: 1 4. Economies of scale occur when the average unit cost of the good or service begins to increase as the capacity and/or volume of throughput increases. ANS: F PTS: 1 5. Focused factories are often devoted to a specific technology or particular market segments or cus- tomers. ANS: T PTS: 1 6. Long setup times increase capacity and improve flexibility. ANS: F PTS: 1 7. An example of safety capacity would be planning additional capacity to account for employee summer vacations. ANS: F PTS: 1 8. In calculating required capacity for a job shop, setup time is a significant factor. ANS: T PTS: 1 9. Capacity costs depend primarily on annual operating and maintenance costs. ANS: F PTS: 1 10. Complementary goods or services balance seasonal demand cycles and therefore use excess capacity available. ANS: T PTS: 1 11. A strategy for increasing long-term capacity in a service organization is to design higher levels of self- service into operations. ANS: T PTS: 1
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12. It is never appropriate to expand capacity in advance of growing demand because the excess capacity will always be underutilized. ANS: F PTS: 1 13. Large capacity increases help to spread fixed costs of construction and operating system setup over one large project. ANS: T PTS: 1 14. Changing labor skill mix is a means to adjust short-term capacity. ANS: T PTS: 1 15. Giving customers information on the best time to call a service center is purely an advertising and pro- motion strategy. ANS: F PTS: 1 16. Varying the price of goods or services is a way of influencing demand patterns. ANS: T PTS: 1 17. Reservations reduce risks for customers but provide little benefit for service providers. ANS: F PTS: 1 18. The Theory of Constraints is focused on eliminating all bottlenecks in a process. ANS: F PTS: 1 19. Constraints determine the throughput of a facility. ANS: T PTS: 1 20. A physical constraint is associated with the capacity of a resource. ANS: T PTS: 1 21. An unsold broadcast advertising space is an example of a perishable asset. ANS: T PTS: 1 22. Revenue management systems are vital to most manufacturing organizations. ANS: F PTS: 1 23. The earliest revenue management systems focused solely on overbooking. ANS: T PTS: 1 24. Offering complementary goods or services is an example of a short-term capacity strategy. ANS: F PTS: 1
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25. Long-term capacity planning must be closely tied to the strategic direction of the organization. ANS: T PTS: 1
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  • Spring '14
  • Dr.Autry
  • pts, Capacity utilization

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