3230 Week 2

In what cases would it be a good idea to change the prioritization of orders? -Addition of a higher-priority order. -Change in due date of existing orders. -Unavailable raw materials. -Some orders take longer than others to complete. -Workstation utilization will be reduced.

-Addition of a higher-priority order. -Change in due date of existing orders. -Unavailable raw materials.

It is often the goal of operations managers to do things at the lowest possible cost and use automation or other capital equipment in their process designs. Which of the following are true? (Pick all that apply) -Automation always lowers average unit costs -Automation is typically a fixed cost -Automation can lower average unit costs if volume is sufficient to achieve scale -Automation is typically a variable cost

-Automation is typically a fixed cost -Automation can lower average unit costs if volume is sufficient to achieve scale

What are some reasons that shortening the delivery time for a shipment (known as expedited shipping) would cost more than using a slower shipping method? -Faster (more expensive) shipping methods such as air rather than ground. -More direct routing increases costs over serving multiple customers in one shipment. -It is a premium service customers may be willing to pay for. -Perishable products must be shipped more quickly. -If a delivery date is close, expedited shipping must be used.

-Faster (more expensive) shipping methods such as air rather than ground. -More direct routing increases costs over serving multiple customers in one shipment. -It is a premium service customers may be willing to pay for.

Which process best matches the Simulation Module 1: The Production Process? Batch Job Line Continuous Project

Batch

Process design choices impact the relative mix of fixed and variable costs in manufacturing or assembling finished goods. Match the following with their fixed / variable cost implications. High capital intensity High labor intensity Implies higher fixed costs, more expensive to add capacity Implies lower fixed costs, less expensive to add capacity

High capital intensity -Implies higher fixed costs, more expensive to add capacity High labor intensity -Implies lower fixed costs, less expensive to add capacity

To achieve efficiency (lower costs), managers make design process choices to accommodate anticipated characteristics of demand for their products. Which of the following is not true? -High unit volume demand suggests line or flow process choices -Higher labor intensity is usually associated with line or flow process choices -High variety demand suggests job or batch process choices -Higher capital intensity is usually associated with line or flow process choices

Higher labor intensity is usually associated with line or flow process choices

Operations managers make production strategy decisions that impact the time it takes for customers to get what they want ("customer lead time"). In addition, inventory costs reflect the level of value added to raw materials (i.e. finished goods are worth more). Match the following productions strategies with their implications. Make to order Make to stock Assemble to order -Lower inventory costs (investment) and longer customer lead times -Higher inventory costs (investment) and shorter customer lead times -Moderate inventory costs (investment) and moderate customer lead times

Make to stock Higher inventory costs (investment) and shorter customer lead times Assemble to order Moderate inventory costs (investment) and moderate customer lead times Make to order Lower inventory costs (investment) and longer customer lead times

When scheduling production of products, what are the key factors to consider? (select all that apply) Quality Timeliness Quantity Capacity Reputation Competition

Quality Timeliness Quantity Capacity

Service process choices are also attempted to satisfy demand characteristics at the lowest possible cost. Which of the following is not true about service processes? -Customers typically introduce more variability and variety into the process creating challenges for process standardization -The "front office" is where customer involvement, variability, and variety are highest -The "back office" is where customer involvement, variability, and variety are highest -When customers are not involved in the process, service processes can be designed for standardization and efficiency like manufacturing

The "back office" is where customer involvement, variability, and variety are highest

Why is it necessary to prioritize orders in a production system? To avoid machine idle time. To ensure product is delivered on time. To give priority to more profitable jobs. To make sure jobs are processed in a First-In-First-Out order.

To avoid machine idle time. To ensure product is delivered on time. To give priority to more profitable jobs.