Quiz: CH. S7

Of the four approaches to capacity expansion, the approach that "straddles" demand:

Choices uses incremental expansion and at some times leads demand, and at other times lags are both correct.

Which of the following represents an aggressive approach to demand management in the service sector when demand and capacity are not particularly well matched?

Lower resort hotel room prices on Wednesdays

Design capacity is the theoretical maximum output of a system in a given period under ideal conditions. T/F

True

Expected output is sometimes referred to as rated capacity. T/F

True

Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 85%. What is the expected weekly output of cranks for this company?

4845

Which of the following techniques is NOT a technique for dealing with a bottleneck?

All are techniques for dealing with bottlenecks.

Which of the following is not one of the four principles of bottleneck management?

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

TOC strives to reduce the effect of constraints by:

offloading work from constrained workstations and increasing constrained workstation capability

hich of the following costs would be incurred even if no units were produced?

building rental costs

Utilization will always be lower than efficiency because:

effective capacity is less than design capacity