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Question
The primary concern with having a large positive capacity cushion is
A. reduced customer satisfaction due to the high level of backorders.
B. underutilization of facility capacity.
C. greater likelihood of stock-outs and lost sales.
D. keeping cost of running out in balance with the cost of excess capacity.
Answer
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Related questions
Q:
The four common objectives of operations are
A.quality, delivery, cost, and innovation.
B.quality, cost, flexibility, and agility.
C.quality, cost, delivery, and flexibility.
D.cost, quality, capacity, and flexibility.
Q:
The transformation view of the operations function provides a unified approach for studying the manufacturing and service industries.
Q:
Operations decisions concerning inventory levels are often made with which of these functions?
A. Marketing
B. Finance
C. Marketing and finance
D. Marketing, finance, and information systems
Q:
The focus of supply chain decisions is
A. sourcing and logistics.
B. capacity and inventory.
C. quality and process.
D. none of the above.
Q:
Which of the following is NOT true regarding the process view of operations?
A. Operations managers are responsible for the conversion process.
B. A sales office may be viewed as a production process.
C. It is a basis for analyzing operations across the entire supply chain.
D. All of the above are true.
Q:
The major decision responsibilities of the operations management function include all of the following EXCEPT
A. quality.
B. process.
C. capacity.
D. capability.
E. inventory.
Q:
Common inputs to the operations transformation process include all of the following EXCEPT
A. raw materials.
B. energy.
C. capacity.
D. labor.
E. conversion processes.
Q:
The three major functions of business organizations
A.are mutually exclusive.
B.function independently of each other.
C.interface with each other.
D.do not interface with each other.
Q:
The five decision areas in operations management are
A.planning, technology, inventory, control, and services.
B.process, quality, capacity, inventory, and supply chain.
C.process, quality, technology, capacity, and production.
D.none of these.
Q:
Which of the following functions is responsible for the actual movement of goods and/or services across organizations?
A.Logistics
B.Operations
C.Purchasing
D.None of these
Q:
Which of the following statements is NOT correct about Gantt charts?
A. Gantt charts are extremely easy to use and are quite well understood.
B. Gantt charts show not only the time required for an activity but also the time at which a particular activity takes place.
C. Gantt charts show the interdependencies and relationships between activities. D. Gantt charts can also be used while scheduling service operations.
Q:
A manufacturer of water filtration pumps is most likely to use which of the following?
A. A prioritization rule based on the price the customer paid.
B. A prioritization formula comparing time left before the job is due to the remaining processing time.
C. A prioritization formula based on the first come, first served rule.
D. All of the above.
Q:
17.There are key differences between service and manufacturing organizations. Which of the following is true regarding these differences?
A. Most service organizations cannot inventory their services to absorb fluctuations in customer demand.
B. Most manufacturing organizations easily permit simultaneous production and consumption of system output.
C. Most manufacturing organizations are typically located closer to the customer, such as a central business district location, due to the simultaneity of consumption and production.
D.Service organizations can easily store current capacity in the form of inventories.
Q:
The two fundamental supply chain strategies are
A. low cost or high quality.
B. innovative or imitative.
C. economies of scale or economies of scope.
D. none of the above.
Q:
Which of the following operations strategic decisions does NOT support a product imitator strategy?
A. Develop world-class processes.
B. Invest in specialized automation.
C. Purposefully react slowly to changes.
D. Use economies of scope.
Q:
Which of the following is NOT a tactic for competing through flexible operations?
A. Reduce production time.
B. Select overseas suppliers.
C. Increase the variety of product/service options or features.
D. Add operations capacity.
Q:
A retailer that invests extensively in customer service training is most likely pursuing which operations objective?
A. Flexibility
B. Deliver
C. Cost
D. Quality
Q:
A decision to maintain higher inventory levels represents a focus on which operations objective?
A. Quality
B. Flexibility
C. Delivery
D. Cost
Q:
Operations strategy is a
A. functional strategy.
B. business strategy.
C. divisional strategy.
D. corporate strategy.
Q:
A global corporation has which of the following characteristics?
A.A separate subsidiary or division for each country where it does business
B.Demand based on a worldwide versus a local basis
C.Products designed for each individual marketplace
D.Both a and c
Q:
Next year's goal is to fill 99% of all orders from stock. This is an example of which of the following?
A.Objective
B.Mission
C.Distinctive competence
D.Strategic decision
Q:
A decision has been made that suppliers will be chosen based on quality rather than cost. This is an example of which of the following?
A.Objective
B.Mission
C.Distinctive competence
D.Strategic decision
Q:
An important lesson from the product-process matrix is
A.give importance to product choice decisions over process choice decisions.
B.give importance to process choice decisions over product choice decisions.
C.give importance to aligning product choice decisions and process choice decisions.
D.most firms should operate off the diagonal to achieve competitive status.
Q:
An entrepreneur is planning to start a factory to produce high-tech plastic containers in high volumes. She will use either an assembly line or batch process and has selected two possible sites, one in a small town and one in a big city. She has discovered the following: Based on the information just presented, which of the following should be chosen?
A.Assembly line in city.
B.Assembly line in small town.
C.Batch process in city.
D.Batch process in small town.
Q:
A company makes necklaces with attached letters. Department A manufactures the necklace chains and letters ahead of demand. Department B assembles the necklaces for specific names when orders are received. Departments A and B are, respectively,
A.make-to-stock, make-to-stock.
B.make-to-stock, assemble-to-order.
C.make-to-order, make-to-stock.
D.make-to-order, assemble-to-order.
Q:
2.The throughput ratio (TR) is the ratio of the total processing time for the job divided by
A.total waiting time.
B.utilization.
C.total waiting time plus total processing time.
D.100.
Q:
A large office with a printing department, a drafting department with all of the engineers located together, and all of the managers located together in a large suite of offices is an example of
A.an assembly line process.
B.a batch process.
C.a project process.
D.a continuous process.
Q:
Concurrent engineering works much better with product line extensions or products that serve familiar markets than entirely new products.
Q:
A store open 24 hours per day is interested in determining store traffic. It found that customers arrive uniformly at the rate of 10 customers per hour. The store has a single worker to process customers. The worker takes an average of 5 minutes to process a customer. If we assume that every customer must be processed, what is the average number of customers in the store?
Q:
In process flowcharting it is most important to depict the process as it is supposed to work or as it was originally designed to work.