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Exam 10: Capacity Management

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Question 1

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The ideas and methods surrounding a revenue management system are often called yield management.

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Question 2

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Which of the following is a way to manage capacity by adjusting short-term capacity levels

A) Varying the price of goods or services
B) Adding peripheral goods and/or services
C) Providing reservations
D) Shifting work to slack periods

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Question 3

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Which of the following is a way to manage capacity by shifting and stimulating demand

Diseconomies of scale are known as the capacity cushion.

In the Theory of Constraints, constraints determine the throughput of a facility.

The Theory of Constraints focuses on eliminating all bottleneck activities in a process.

In service industries, capacity is often viewed as the _____.

_____ occur when the average unit cost of a good or service begins to increase as the capacity and/or volume of throughput increases.

A doctor's office charges no-show patients $30 if they do not cancel their appointment 24 hours prior to the appointment. In this scenario, which of the following can be used by the doctor's office to handle the risk of idle service capacity

In the Theory of Constraints, a__________is one that effectively limits the capacity of the entire process.

Blyrie Inc., a sports goods manufacturing company, follows a policy that involves manufacturing only when the demand exceeds the amount of goods already manufactured. Given this information, Blyrie Inc. most likely uses a _____ to expand its capacity.

Harlose Suits owns more equipment than required for manufacturing goods during periods of regular demand in order to tackle sudden demand surges. It also has a certain reserve of produced goods to tackle material shortages. In this case, the reserve of equipment and produced goods are examples of _____.

Lumeris Inc., an automobile manufacturer, has an inflexible work schedule and requires its workers to work nine hours a day and six days a week. Its laborers do not have adequate skills to perform their job efficiently. The inflexible work schedule and inadequate labor skills are examples of _____.

At Rues and West Bros., a spare parts manufacturing company, the most important competitive priority is quality. Only a few key spare parts are produced using similar process designs. In this scenario, Rues and West Bros. _____.

A work order is a specification of work to be performed for a customer or a client.

Long-term capacity decisions usually involve adjusting schedules or staffing levels.

Average safety capacity (%) is computed using the formula:

Which of the following statements is true of a work order

Which of the following statements is true of setup time

Offering complementary goods or services is an example of a short-term capacity strategy.