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Exam 10: Capacity Management

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Question 31

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Referring to a Revenue Management System (RMS) , which of the following is not a component?

A) Marketing
B) Forecasting
C) Pricing
D) Allocating

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Question 32

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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?

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(2 shifts/day) (380 ...

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Question 33

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

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

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?

A physical constraint is associated with the capacity of a resource.

Safety capacity is intended for all of the following except

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?

Define a Revenue Management System (RMS) and explain how it works. Give several examples of assets that can be managed using an RMS.

Large capacity increases help to spread fixed costs of construction and operating system setup over one large project.

A capacity straddle strategy is related to

A machine in a job shop is used for only two parts, A and B. The time per setup (in minutes), processing time (in seconds), order size (in units) is given below. Using the information, determine the total capacity required for this machine in minutes.

Revenue Management Systems (RMS)

Economies of scale occur when the average unit cost of the good or service begins to increase as the capacity and/or volume of throughput increases.

Define capacity including the two ways it can be viewed. Provide an example of each way.

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

The capacity expansion approach that provides the most safety capacity is

What is safety capacity? Discuss reasons for using it.

Discuss the following: a.Approaches to adjust short-term capacity b.Approaches for shifting and stimulating demand

Safety capacity or a capacity cushion is