Which of the following is true of capacity?
Capacity must be at least as large as the average demand to satisfy customers in the long run
_____________ are often influenced by economies and diseconomies of scale
Capacity decisions
The design and construction cost per room of building a hotel decreases as the facility gets larger because the fixed cost is allocated over more rooms. This is an example of______________
economies of scale
Which of the following statements is true of diseconomies of scale?
They arise when dissimilar product lines and processes exist in the same facility
The capacity cushion can be defined as:
the amount of capacity reserved for unanticipated events such as demand surges, material shortages, and equipment breakdowns.
Which of the following statements is true of safety capacity?
It is normally planned into a process or facility to deal with unanticipated events.
Which of the following formulae is used to compute the capacity required to meet a given production volume for one work order?
Capacity required = Setup time + (Processing time x Order size)
In the context of capacity measurement, when the actual capacity is diminished by the lack of full utilization of the resources, the utilization factor is
Less than one
For operations planning, capacity needs must be translated into:
Specific requirements for equipment and labor
In the context of capacity plan, having too little capacity can;
Squeeze profit margins of a firm
Which of the following statements is true of complementary goods and services?
They are produced to balance seasonal demand cycles
Which of the following is an assumption made to illustrate capacity expansion decisions?
Demand is steadily increasing
In which of the following strategies for expanding capacity will there be short periods of over-and underutilization of resources?
A capacity straddle strategy
Changing labor capacity and schedules is a way to:
Make short-term adjustments to capacity
_________ is a promise to provide a good or service at some future time and place
Reservation
Which of the following statements is true of a revenue management system (RMS)?
It is often used to manage theater, stadium, and concert seats
In a revenue management system (RMS), ______________ involves segmenting perishable assets into target market categories
Allocation
__________ is the amount of money generated per time period through actual sales
Throughput
A _______________ is a physical constraint in which idle capacity exists
A nonbottleneck work activity
A _______________ is environmental or organizational, such as low product demand or an inefficient management policy or procedure
Nonphysical constraint
Which of the following statements is true of the Theory of Constraints (TOC)?
It focuses on scheduling nonbottleneck resources to enhance throughput
Which of the following is a nonbottleneck management principle?
An hour lost at a nonbottleneck resource has no effect on the total process or factory output and incurs no real cost
Which of the following is true of capacity?
Capacity must be at least as large as the average demand to satisfy customers in the long run
_____________ are often influenced by economies and diseconomies of scale
Capacity decisions
The design and construction cost per room of building a hotel decreases as the facility gets larger because the fixed cost is allocated over more rooms. This is an example of______________
economies of scale
Which of the following statements is true of diseconomies of scale?
They arise when dissimilar product lines and processes exist in the same facility
The capacity cushion can be defined as:
the amount of capacity reserved for unanticipated events such as demand surges, material shortages, and equipment breakdowns.
Which of the following statements is true of safety capacity?
It is normally planned into a process or facility to deal with unanticipated events.
Which of the following formulae is used to compute the capacity required to meet a given production volume for one work order?
Capacity required = Setup time + (Processing time x Order size)
In the context of capacity measurement, when the actual capacity is diminished by the lack of full utilization of the resources, the utilization factor is
Less than one
For operations planning, capacity needs must be translated into:
Specific requirements for equipment and labor
In the context of capacity plan, having too little capacity can;
Squeeze profit margins of a firm
Which of the following statements is true of complementary goods and services?
They are produced to balance seasonal demand cycles
Which of the following is an assumption made to illustrate capacity expansion decisions?
Demand is steadily increasing
In which of the following strategies for expanding capacity will there be short periods of over-and underutilization of resources?
A capacity straddle strategy
Changing labor capacity and schedules is a way to:
Make short-term adjustments to capacity
_________ is a promise to provide a good or service at some future time and place
Reservation
Which of the following statements is true of a revenue management system (RMS)?
It is often used to manage theater, stadium, and concert seats
In a revenue management system (RMS), ______________ involves segmenting perishable assets into target market categories
Allocation
__________ is the amount of money generated per time period through actual sales
Throughput
A _______________ is a physical constraint in which idle capacity exists
A nonbottleneck work activity
A _______________ is environmental or organizational, such as low product demand or an inefficient management policy or procedure
Nonphysical constraint
Which of the following statements is true of the Theory of Constraints (TOC)?
It focuses on scheduling nonbottleneck resources to enhance throughput
Which of the following is a nonbottleneck management principle?
An hour lost at a nonbottleneck resource has no effect on the total process or factory output and incurs no real cost