chapter 4 Flashcards
When evaluating capacity , managers need to consider both resource inputs and product outputs
true
When a firm design capacity is less than the capacity required to meet its demand, it is said to have a negative capacity cushion
True
outsourcing is a common source of external capacity
True
in solving a decision tree problem, calculations start at the ends of the “branches” of the tree and work backwards to the base of the tree
true
best operating level is usually a multiple of the level of capacity for which a process was designed
false
compared with a service operation, a manufacturing operations capacity is which of the following?
demand can be smoothed by inventory policies
capacity planning that involves hiring, layoffs, some new tooling, minor equipment purchases, and subcontracting is considered as which of the following planning horizons?
intermediate range
if the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 untis per hour, which of the following is the capacity utilization rate?
1.25
cur= 500 units/400 units= 1/25
when deciding to add capacity to a factory which of the following need not be considered?
immediate product demand
the capacity utilization rate is found by dividing best operating level by capacity used?
False
the way to build in greater flexibility in your workers is to do which of the following?
provide a broader range of training
because services can not be stored for later use, service managers consider time as one of their supplies or resources
True
a production facility works best when it focuses on a fairly limited set of production objectives
true
in practice, achieving a perfectly balanced plant is usually desirable but impossible
false
the ultimate in plant flexibility is a one hour changeover time plant
false
capacity planning involving consideration of prodution scheduling and inventory position is characterized by which one of the following time durations?
short range
sharing capacity is a common source of external capacity
true
which of the following models uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step?
decision trees
a decision tree problem does not need probabilities or payoffs to generate a solution
false
low rates of capacity utilization in service organizations are never appropriate
false
overtime and personnel transfers are solutions to capacity problems in the intermediate term
false
the larger the capacity cushion the better
false
capacity can be defined as the ability to hold, receive, store, or accomodate
true
