Question 1

________ is actual output as a percent of design capacity.

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Question 2

________ cost is the cost that continues even if no units are produced.

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Question 3

In "drum,buffer,rope," what provides the schedule,i.e.the pace of production?
A)drum
B)buffer
C)rope
D)drum,buffer,and rope combined
E)both buffer and rope

Accepted Answer

The drum provides the schedule, or the pace of production, by setting the rate at which the system should operate. The drum controls the release of materials into production and ensures that the system stays on track with the desired production rate. The buffer and rope are used to buffer against variations in demand and maintain a smooth flow of production, but they do not determine the pace of production.

Question 4

In "drum,buffer,rope," the ________ acts like kanban signals.

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Question 5

The capacity planning strategy that delays adding capacity until capacity is below demand,then adds a capacity increment so that capacity is above demand,is said to ________ demand.

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Question 6

Why is the capacity decision important?

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Question 7

________ is a means of determining the discounted value of a series of future cash receipts.

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Question 8

Distinguish between utilization and efficiency.

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Question 9

________ is the amount a facility can hold,store,receive,or produce in a period of time.

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Question 10

Define variable costs.What special assumption is made about variable costs in the textbook?

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Question 11

Multiproduct break-even analysis calculates the ________ of each product,________ it in proportion to each product's share of total sales.

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Question 12

A good capacity decision requires that it be tightly integrated with the organization's strategy and investments.But there are other "considerations" to making a good capacity decision.Name them.Describe each in a sentence or two.

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Question 13

________ analysis finds the point at which costs equals revenues.

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Question 14

Identify the tactics for matching capacity to demand.

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Question 15

Define fixed costs.

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Question 16

________ is actual output as a percent of effective capacity.

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Question 17

Some organizations use number of beds,number of rooms,or room size to measure capacity.There's no time period in this capacity,and no "throughput." Why are these firms using such a different concept of capacity?

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Question 18

In the service sector,scheduling customers is ________,and scheduling the workforce is ________.

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Question 19

A sugar mill receives sugar cane from farmers,extracts the juice,boils it into syrup,and then crystallizes the syrup into raw sugar.There has been an ongoing consolidation of sugar mills,and an increase in the capacity of those that remain.The number of mills in Louisiana was 48 in the 1960s,was 18 in 1999 and is currently 13.In 1999 the break-even point for a typical mill was 600,000 tonnes.But as the surviving mills have added capacity,the break-even point is now 1,000,000 tonnes.In 1999,the state's farmers produced 16,000,000 tonnes of cane,but by 2004,the crop was down to 13,000,000 tonnes.Analyse this situation with what you have learned about the capacity decision.Is the industry better off with fewer but larger mills,or not?

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Question 20

What is the fundamental distinction between design capacity and effective capacity? Provide a brief example.

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Quiz 19: Capacity and Constraint Management