chapter 7s ops man terms

10) Which of the following is not one of the four principles of bottleneck management? A. Release work orders to the system at the bottleneck's capacity pace. B. Lost time at the bottleneck is lost system capacity. C. Increasing capacity at non-bottleneck stations is a mirage. D. Increased bottleneck capacity is increased system capacity. E. Bottlenecks should be moved to the end of the system process.

A. Bottlenecks should be moved to the end of the system process.

1) Utilization will always be lower than efficiency because A. Effective capacity is less than design capacity. B. Effective capacity is greater than design capacity. C. Effective capacity equals design capacity. D. False, Utilization and efficiency are equal in value. E. False, Utilization is normally greater than efficiency.

A. Effective capacity is less than design capacity.

41) Multiproduct break-even analysis calculates the ________ of each product, ________ it in proportion to each product's share of total sales. A. revenue; factoring B. variable Costs; adjusting C. fixed Cost; varying D. contribution; weighting E. none of the above

A. contribution; weighting

37) A single channel queuing system has an average service time of 12 minutes per customer, which is exponentially distributed. The manager is thinking of converting to a system with a constant service time of 12 minutes. The arrival rate will remain the same. The effect will be to: A. increase utilization B. decrease utilization C. increase the average waiting time before service D. decrease the average waiting time before service E. not have any effect since the service time is unchanged

A. decrease the average waiting time before service

59) As a rule of thumb, when choosing productions strategies, the ____ the capacity, the ____ the fixed cost. A) Lower, higher B) Higher, higher C) Higher, lower D) These two factors are uncorrelated

B) Higher, higher

11) Basic break-even analysis typically assumes that A. revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases B. variable costs and revenues increase in direct proportion to the volume of production C. both costs and revenues are made up of fixed and variable portions D. costs increase in direct proportion to the volume of production, while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts E. All of the above are assumptions in the basic break-even model.

B. variable costs and revenues increase in direct proportion to the volume of production

60) The capacity of the system is? A) The reciprocal of the system cycle time B) The time through the longest path in the system with no waiting C) The reciprocal of the activity time of the bottleneck D) The bottleneck's activity time

C) The reciprocal of the activity time of the bottleneck

3) Adding a complementary product to what is currently being produced is a demand management strategy used when A. demand exceeds capacity B. capacity exceeds demand for a product which has stable demand C. the existing product has seasonal or cyclical demand D. price increases have failed to bring about demand management E. efficiency exceeds 100 percent

C. the existing product has seasonal or cyclical demand

4) Of the four approaches to capacity expansion, the approach that "straddles" demand A. uses incremental expansion B. uses one-step expansion C. at some times leads demand, and at other times lags D. works best when demand is not growing but is stable E. Choices A and C are both correct.

E. Choices A and C are both correct.

21) Which of the following is NOT a tactic for matching capacity to an increasing demand? A. Adding new staff B. Purchasing additional machinery C. Improving processes to increase throughput D. Adding new assembly lines E. Closing facilities

E. Closing facilities