Chapter 4 Flashcards
0
Q
through-put time is what?
A
total time for an item to move through a process from first operation to the final output
=avg WIP inventory / output rate
=operations time+movement time+wait time
1
Q
what is capacity cushion?
A
-reserve capacity used to deal with sudden increase in demand
cushion = 100% - avg utilization (%)
2
Q
ways to solve bottlenecks?
A
add capacity - make things quicker
add inventory - so machines are always running
3
Q
three expansion strategies?
A
- expansionist strategy
- stay ahead of demand - wait and see strategy
- lags behind demand. relies on short term options such as overtime. temp workers - follow the leader
- expanding when others do
