Question 1

__________ is a strategic task that involves the future development and acquisition of capacity in order to meet future market needs.

Accepted Answer

CAPACITY PLANNING

Question 2

The basic M/M/1 queuing model has all of the following properties except

Accepted Answer

A)   the line discipline is first come, first served
B)   limited customers
C)   customers do not abandon or refuse to join the line
D)   all of the aboveE) A) and B)
F) All of the above

Question 3

Powerful scheduling software that can accommodate multiple constraints for managing fixed capacity and inflexible demand can be used to schedule

Accepted Answer

A)   classrooms for college courses
B)   emergency room nurses
C)   fast food workers at a large restaurant chain
D)   all of the aboveE) B) and D)
F) All of the above

Question 4

Which of the following statements best describes process management?

Accepted Answer

A)   It increases capacity by removing constraint points (bottlenecks)  in the system.
B)   It can increase capacity by redesigning work flows.
C)   Techniques such as queuing theory rearrange resources to achieve more customers in the system.
D)   All of the above are correct in describing process management.E) A) and B)
F) B) and D)

Question 5

Capacity management is an operational activity that primarily focuses on the intelligent utilization of capacity.

Accepted Answer

A) True 
 B)False

Question 6

Price changes are useful ways for shifting demand to meet available capacity of a facility.

Accepted Answer

A) True 
 B)False

Question 7

Waiting line remedies come in two forms: mental and psychological.

Accepted Answer

A) True 
 B)False

Question 8

If demand cannot be segmented into price- and time-sensitive categories, then this is the best situation for yield management to work.

Accepted Answer

A) True 
 B)False

Question 9

Capacity management techniques have found nontraditional applications in areas such finance, telecom, and hospitals.

Accepted Answer

A) True 
 B)False

Question 10

Yield management can be used by all of the following industries except

Accepted Answer

A)   hotels
B)   automobile manufacturers
C)   airlines
D)   cruise linesE) All of the above
F) B) and C)

Question 11

All of the following can be done when the resources that provide capacity are fixed except

Accepted Answer

A)   workforce scheduling
B)   production scheduling
C)   both choices A and B
D)   none of the aboveE) A) and D)
F) None of the above

Question 12

An example of a fixed capacity/flexible demand scenario is

Accepted Answer

A)   a cellular network provider
B)   an automobile repair facility
C)   a fast food restaurant
D)   a post office branchE) A) and B)
F) B) and C)

Question 13

Capacity planning is

Accepted Answer

A)   a strategic task
B)   the acquisition of capacity in order to meet future market needs
C)   arranging for capacity needs to meet guaranteed customer service levels
D)   all of the aboveE) A) and B)
F) All of the above

Question 14

Variance in planned capacity expenditures and cost of underutilized capacity are two financial measures of managing capacity.

Accepted Answer

A) True 
 B)False

Question 15

Management of demand and management of resources constitute the two broad content areas of capacity management.

Accepted Answer

A) True 
 B)False  True

Question 16

Maximizing yield is the same as maximizing capacity utilization.

Accepted Answer

A) True 
 B)False

Question 17

Customer involvement and frequent communication can affect customer psychological perceptions of waiting time.

Accepted Answer

A) True 
 B)False

Question 18

__________ can increase capacity by redesigning work flows and identifying and managing constraint points in a system.

Accepted Answer

The answer of __________ can increase capacity by redesigning work...

Question 19

All of the following actions can be taken if demand falls suddenly except

Accepted Answer

A)   shifting capacity to growth markets
B)   closing facilities
C)   increasing the variety of products
D)   increasing advertisingE) C) and D)
F) B) and C)

Question 20

What are the assumptions of the basic waiting line model? Are these valid in real life? Give examples in which the model might be the most accurate and the most inaccurate.

Accepted Answer

The basic waiting line model, also known as the queuing theory, makes several assumptions:

1. Arrival rate: The model assumes that customers arrive at a constant rate over time, following a Poisson distribution.

2. Service rate: The model assumes that service times are constant and follow an exponential distribution.

3. Queue discipline: The model assumes that customers join a single queue and are served on a first-come, first-served basis.

4. Queue capacity: The model assumes that there is an infinite or finite but large capacity for the queue.

5. Population: The model assumes that the population of potential customers is infinite or very large.

In real life, these assumptions may not always hold true. For example, in a fast-food restaurant, the arrival rate of customers may vary throughout the day, with peaks during lunch and dinner times. Additionally, the service times for different customers may vary based on their orders and the efficiency of the staff. In some cases, customers may also have the option to choose between multiple queues, such as at a supermarket with multiple checkout lanes.

The model might be the most accurate in situations where the assumptions closely align with the actual system, such as in a call center with a large number of incoming calls and a standardized service process. In contrast, the model might be the most inaccurate in situations with highly variable arrival and service rates, limited queue capacity, or a small population of potential customers, such as a small doctor's office with limited appointment slots.

Overall, while the basic waiting line model provides a useful framework for understanding and analyzing queues, it is important to consider the specific characteristics of the system in question and adjust the model's assumptions accordingly.

Exam 7: Managing Capacity

__________ is a strategic task that involves the future development and acquisition of capacity in order to meet future market needs.

Correct Answer
verified
CAPACITY PLANNING

The basic M/M/1 queuing model has all of the following properties except

Correct Answer
verified

Powerful scheduling software that can accommodate multiple constraints for managing fixed capacity and inflexible demand can be used to schedule

Correct Answer
verified

Which of the following statements best describes process management?

Correct Answer
verified

Capacity management is an operational activity that primarily focuses on the intelligent utilization of capacity.

Correct Answer
verified

Price changes are useful ways for shifting demand to meet available capacity of a facility.

Correct Answer
verified

Waiting line remedies come in two forms: mental and psychological.

Correct Answer
verified

If demand cannot be segmented into price- and time-sensitive categories, then this is the best situation for yield management to work.

Correct Answer
verified

Capacity management techniques have found nontraditional applications in areas such finance, telecom, and hospitals.

Correct Answer
verified

Yield management can be used by all of the following industries except

Correct Answer
verified

All of the following can be done when the resources that provide capacity are fixed except

Correct Answer
verified

An example of a fixed capacity/flexible demand scenario is

Correct Answer
verified

Capacity planning is

Correct Answer
verified

Variance in planned capacity expenditures and cost of underutilized capacity are two financial measures of managing capacity.

Correct Answer
verified

Management of demand and management of resources constitute the two broad content areas of capacity management.

Correct Answer
verified
True

Maximizing yield is the same as maximizing capacity utilization.

Correct Answer
verified

Customer involvement and frequent communication can affect customer psychological perceptions of waiting time.

Correct Answer
verified

__________ can increase capacity by redesigning work flows and identifying and managing constraint points in a system.

Correct Answer
verified

All of the following actions can be taken if demand falls suddenly except

Correct Answer
verified

What are the assumptions of the basic waiting line model? Are these valid in real life? Give examples in which the model might be the most accurate and the most inaccurate.

Exam 7: Managing Capacity

__________ is a strategic task that involves the future development and acquisition of capacity in order to meet future market needs.

Correct AnswerverifiedCAPACITY PLANNING

The basic M/M/1 queuing model has all of the following properties except

Correct AnswerverifiedShow Answer

Powerful scheduling software that can accommodate multiple constraints for managing fixed capacity and inflexible demand can be used to schedule

Correct AnswerverifiedShow Answer

Which of the following statements best describes process management?

Correct AnswerverifiedShow Answer

Capacity management is an operational activity that primarily focuses on the intelligent utilization of capacity.

Correct AnswerverifiedShow Answer

Price changes are useful ways for shifting demand to meet available capacity of a facility.

Correct AnswerverifiedShow Answer

Waiting line remedies come in two forms: mental and psychological.

Correct AnswerverifiedShow Answer

If demand cannot be segmented into price- and time-sensitive categories, then this is the best situation for yield management to work.

Correct AnswerverifiedShow Answer

Capacity management techniques have found nontraditional applications in areas such finance, telecom, and hospitals.

Correct AnswerverifiedShow Answer

Yield management can be used by all of the following industries except

Correct AnswerverifiedShow Answer

All of the following can be done when the resources that provide capacity are fixed except

Correct AnswerverifiedShow Answer

An example of a fixed capacity/flexible demand scenario is

Correct AnswerverifiedShow Answer

Capacity planning is

Correct AnswerverifiedShow Answer

Variance in planned capacity expenditures and cost of underutilized capacity are two financial measures of managing capacity.

Correct AnswerverifiedShow Answer

Management of demand and management of resources constitute the two broad content areas of capacity management.

Correct AnswerverifiedTrue

Maximizing yield is the same as maximizing capacity utilization.

Correct AnswerverifiedShow Answer

Customer involvement and frequent communication can affect customer psychological perceptions of waiting time.

Correct AnswerverifiedShow Answer

__________ can increase capacity by redesigning work flows and identifying and managing constraint points in a system.

Correct AnswerverifiedShow Answer

All of the following actions can be taken if demand falls suddenly except

Correct AnswerverifiedShow Answer

What are the assumptions of the basic waiting line model? Are these valid in real life? Give examples in which the model might be the most accurate and the most inaccurate.

Correct Answer
verified
CAPACITY PLANNING

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True

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