Chapter 8 Capacity, Scheduling and Location Planning

11. Yield or revenue management would NOT be so appropriate if which of the following circumstances is present?

a) Uncertain demand

b) Perishable capacity

c) The market is homogeneous

d) Capacity is sold in advance

12. Utilization can be defined as:

a) Output divided input

b) Actual output relative to some expected, designed, or normal output

c) Input divided by output

d) Output in proportion to the actual input

13. Assume that Company F produces a variety of smart phones sequentially on three machines. The times required on each machine for one typical racket are as follows: M1: 3 minutes M2: 8 minutes, M3: 2 minutes, M4: 5 minutes. The throughput time for a smart phone is :

a) 2 minutes

b) 4.5 minutes

c) 9 minutes

d) 18 minutes

14. Which of the following is/are (a) technique(s) used for increasing short-run capacity

a) Increase resources

b) Improve resource use

c) Modify the demand

d) All of the above

15. Learning curve effect is

a) The ability to increase a machine’s productive capacity through usage

b) The ability to improve a process capacity through the usage of a machine

c) The human ability to adjust their productive capacity through learning

d) The human ability to increase their productive capacity through learning

16. The most important factor(s) effecting the learning curve rate include(s):

a) Complexity of the task

b) Percentage of mechanical input

c) Percentage of human input

d) Only A and C

True/False

1. Yield management, also known as revenue management is the amount of output of acceptable quality emerging from a production system compared with the amount that entered it.

2. Obtaining lower unit costs through the use of larger facilities is called economies of scope.

3. It is not unusual for fire departments to use “slack months” for building inspections, conducting prevention programs and giving talks as a way to have anticyclic outputs.

4. The first step to enhance the development of long-term capabilities is to identify potential locations.