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Exam 10: Capacity Management

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Question 21

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For a Marriott hotel call center the expected service rate was 3.0 minutes per telephone call per customer service representative (CSR). With 3 telephone CSRs on-duty during the 6:30 to 7:00 am time period, and assuming a 90% target CSR labor utilization rate, how many telephone calls can these 3 CSRs handle during this time period.

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Utilization =( Arrival Demand)...

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Question 22

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Long setup times increase capacity and improve flexibility.

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Question 23

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Revenue management systems are vital to most manufacturing organizations.

For a non-bottleneck activity,

An assembly line normally operates two shifts a day, five days per week. Each shift can produce 475 assemblies. What is the weekly capacity?

Which of the following is a short-term capacity decision?

Changing labor skill mix is a means to adjust short-term capacity.

Varying the price of goods or services is a way of influencing demand patterns.

An order fulfillment process normally operates two shifts a day, five days per week. Under normal conditions, 380 orders can be processed per shift. What is the daily capacity?

Safety capacity or a capacity cushion is

Define Economies of Scale and Diseconomies of Scale. Explain how they relate to capacity decisions.

Which of the following is not correct relating to bottleneck resources?

A food packaging plant has planned shipments over the next six weeks of 9500, 8500, 10000, 8800, 8200, and 9000. The plant normally operates 2 shifts per day, five days per week. During each shift, 1000 food products can be packaged and ready to ship. What is the plant's weekly capacity? At what percentage of capacity is the plant actually operating?

When the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases, it is called ____

An entity in which idle capacity exists is called a ____.

The earliest revenue management systems focused solely on overbooking.

Which of the following is not a key consideration in long-term capacity strategy?

A strategy for increasing long-term capacity in a service organization is to design higher levels of self-service into operations.

According to the Theory of Constraints, ____ is the amount of money generated per time period through actual sales.

Jack's Ice Cream Parlor produces two types of ice cream on a contract basis for a major restaurant chain using a large blender. A batch of ice cream A requires a setup time of 45 minutes, a process mixing time of 1.2 minutes per gallon, and 50 gallons are made per day. Ice cream B requires the same machine to be cleaned and setup which takes 30 minutes, a process mixing time of 2 minutes per gallon, and 100 gallons produced per day. a. Compute the capacity required. b. What percentage of total capacity required is setup time?