1. Unlike a focused factory, an unfocused factory is best characterized by:
a. a few key products.
b. particular market segments.
c. identical people skills.
d. dissimilar product lines.
e. precise resource utilization over time.
2. By definition, when the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases, it is called ____.
a. Economies of scale
b. Diseconomies of scale
c. The Principle of Cost Cushioning
d. A nonphysical constraint
e. None of the above
3. Blyrie Inc., a sports goods manufacturing company, follows a policy that involves manufacturing only when the demand exceeds the amount of goods already manufactured. Given this information, Blyrie Inc. most likely uses a _____ to expand its capacity.
a. capacity lead strategy
b. capacity lag strategy
c. capacity straddle strategy
d. capacity reduction strategy
e. capacity increase strategy
4. Let’s consider this situation; a firm will encounter short periods of over- and underutilization with primarily, which of the following capacity expansion approaches?
a. One large capacity increase
b. Small capacity increases that match and then immediately lags demand
c. Small capacity increases that lead demand
d. Small capacity increases that lag demand in some cases
e. Small capacity increases that match demand
5. Consider this from a capacity planning and management perspective: a doctor's office will charge no-show patients $30 if they did not cancel their appointment 24 hours ahead of the appointment primarily because:
a. insurance will pay the no-show fee anyway unless the patient did not have a viable excuse.
b. the appointment time and associated revenue is perishable, and the doctor may lose revenue.
c. the doctor's office does a poor job of forecasting demand but has to make up the cost in some manner; insurance notwithstanding.
d. the no-show price of $30 can be added to medical fees for reimbursement.
6. In service industries, capacity is often viewed as the _____.
a. minimum rate of output per unit time
b. amount of setup time
c. units of resource availability
d. amount of overtime scheduled