Docsity
Log inSign up
Docsity
Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity

Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan

Guidelines and tips
Guidelines and tips
Sell on Docsity
Sell on Docsity
Log inSign up

Prepare for your exams

Study with the several resources on Docsity

Find documents

Prepare for your exams with the study notes shared by other students like you on Docsity

Search Store documents

The best documents sold by students who completed their studies

Search through all study resources
Docsity AINEW

Summarize your documents, ask them questions, convert them into quizzes and concept maps

Explore questions

Clear up your doubts by reading the answers to questions asked by your fellow students

Earn points to download

Earn points by helping other students or get them with a premium plan

Share documents
download point icon20 Points

For each uploaded document

Answer questions
download point icon5 Points

For each given answer (max 1 per day)

All the ways to get free points
Get points immediately

Choose a premium plan with all the points you need

Study Opportunities

Choose your next study program

Get in touch with the best universities in the world. Search through thousands of universities and official partners

Community

Ask the community

Ask the community for help and clear up your study doubts

University Rankings

Discover the best universities in your country according to Docsity users

Free resources

Our save-the-student-ebooks!

Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors

From our blog

Exams and Study
Go to the blog

MGSC 395 Exam 2 Questions and Answers 2024, Exams of Marketing Business-to-business (B2B)

Henderson State University (HSU)Marketing Business-to-business (B2B)

MGSC 395 Exam 2 Questions and Answers 2024 Capacity - Ans - The max rate of output of a process or system What do long-term capacity plans involve? - Ans - Investments in new facilities and equip at the organizational level, and require top mgmt participation and approval bc they are not easily reversed When choosing a capacity strategy, what do managers need to consider? - Ans - How much of a cushion is needed for variable demand & should we expand capacity ahead of demand or wait until demand is more certain 2 ways capacity can be expressed - Ans - 1. output measures 2. input measures When are output measures of capacity best utilized? - Ans - When applied to individual processes within the firm or when the firm provides a relatively small number of standardized services or products

Typology: Exams

2023/2024

Available from 09/11/2024

lect-henry
lect-henry 🇺🇸

34 documents

1 / 14

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
MGSC 395 Exam 2 Questions and Answers 2024
Capacity - Ans - The max rate of output of a process or system
What do long-term capacity plans involve? - Ans - Investments in new facilities and
equip at the organizational level, and require top mgmt participation and approval bc
they are not easily reversed
When choosing a capacity strategy, what do managers need to consider? - Ans -
How much of a cushion is needed for variable demand & should we expand capacity
ahead of demand or wait until demand is more certain
2 ways capacity can be expressed - Ans - 1. output measures
2. input measures
When are output measures of capacity best utilized? - Ans - When applied to
individual processes within the firm or when the firm provides a relatively small
number of standardized services or products
When are input measures of capacity best utilized? - Ans - Low volume, flexible
processes
What is the problem w/ input measures? - Ans - Demand is invariably expressed as
an output rate
Utilzation - Ans - The degree to which a resource such as equipment, space, or the
workforce is currently being used
Utilization formula - Ans - U= Average output rate / Max capacity * 100%
Deciding on the best level of capacity involves consideration for the __ of ___ - Ans -
Efficiency of operations
Economies of scale - Ans - States that the average unit cost of a service or good can
be reduced by increasing its output rate
4 reasons why economies of scale can drive costs down when output increases -
Ans - 1. fixed costs are spread over more units
2. construction costs are reduced
3. costs of purchased materials are cut
4. process advantages are found
Diseconomies of scale - Ans - Occurs when the average cost per unit increases as
the facility's size increases
3 dimensions of capacity strategy - Ans - 1. sizing capacity cushions
2. timing and sizing expansion
3. linking process capacity and other operating decisions
pf3
pf4
pf5
pf8
pf9
pfa
pfd
pfe

Partial preview of the text

Download MGSC 395 Exam 2 Questions and Answers 2024 and more Exams Marketing Business-to-business (B2B) in PDF only on Docsity!

MGSC 395 Exam 2 Questions and Answers 2024

Capacity - Ans - The max rate of output of a process or system What do long-term capacity plans involve? - Ans - Investments in new facilities and equip at the organizational level, and require top mgmt participation and approval bc they are not easily reversed When choosing a capacity strategy, what do managers need to consider? - Ans - How much of a cushion is needed for variable demand & should we expand capacity ahead of demand or wait until demand is more certain 2 ways capacity can be expressed - Ans - 1. output measures

  1. input measures When are output measures of capacity best utilized? - Ans - When applied to individual processes within the firm or when the firm provides a relatively small number of standardized services or products When are input measures of capacity best utilized? - Ans - Low volume, flexible processes What is the problem w/ input measures? - Ans - Demand is invariably expressed as an output rate Utilzation - Ans - The degree to which a resource such as equipment, space, or the workforce is currently being used Utilization formula - Ans - U= Average output rate / Max capacity * 100% Deciding on the best level of capacity involves consideration for the __ of ___ - Ans - Efficiency of operations Economies of scale - Ans - States that the average unit cost of a service or good can be reduced by increasing its output rate 4 reasons why economies of scale can drive costs down when output increases - Ans - 1. fixed costs are spread over more units
  2. construction costs are reduced
  3. costs of purchased materials are cut
  4. process advantages are found Diseconomies of scale - Ans - Occurs when the average cost per unit increases as the facility's size increases 3 dimensions of capacity strategy - Ans - 1. sizing capacity cushions
  5. timing and sizing expansion
  6. linking process capacity and other operating decisions

Capacity cushion - Ans - The amount of reserve capacity a process uses to handle sudden increases in demand or temporary losses of production capacity Capacity cushion formula - Ans - CC= 100% - Average Utilization Rate % In a capital intensive industry, a capacity cushion of __ % is preferred - Ans - 10% or under In less capital intensive industries, the capacity cushion should be around __ % - Ans - 30 - 40% Businesses find large capacity cushions appropriate when ___ varies - Ans - demand 2 extreme strategies for expanding capacity - Ans - 1. expansionist strategy (large, infrequent jumps in capacity)

  1. wait & see strategy (smaller. more frequent jumps) A ___ approach is needed for long term capacity decisions - Ans - systematic 4 steps for a sound capacity decision (assuming mgmt already determined existing capacity & whether current capacity cushion is appropriate) - Ans - 1. estimate future capacity requirements
  2. identify gaps by comparing requirements w/ available capacity
  3. develop alt plans for reducing the gaps
  4. evaluate each alt, both quant and qual, and make a final choice Capacity requirements - Ans - What a process's capacity should be for some future time period to meet the demand of customers (ext or int) given the firm's desired capacity cushion 2 ways capacity requirements can be expressed - Ans - 1. output measure
  5. input measure 4 potential foundations for the estimate of capacity requirements - Ans - 1. forecasts of demand
  6. productivity
  7. competition
  8. technological change Planning horizon - Ans - The set of consecutive time periods considered for planning purposes What is the simplest way to express capacity requirements? - Ans - an output rate 4 situations output measures might be insignificant - Ans - 1. product variety and process divergence is high
  9. the product or service mix is changing
  10. productivity rates are expected to change
  11. significant learning effects are expected

A customer population in which the number of customers in the system does not affect the rate at which the population generates new customers is said to be ___ - Ans - infinite 2 ways that can describe the service system - Ans - 1. number of lines

  1. arraignment of facilities channel - Ans - One or more facilities required to perform a given service phase - Ans - a single step in providing a service In a ___-channel, ___-phase system all services demanded by a customer can be performed by a single server facility (ex. car wash) - Ans - single, single The __-channel, ___-phase arraignment is used when the services are best performed in sequence by more than one facility, yet customer vol or other constraints limit the design to one channel (ex. McDonalds drive thru) - Ans - single, multiple The __-channel, ___-phase arraignment is used when demand is large enough to warrant providing the same service at more than one facility or when the services offered by the facilities are different - Ans - multiple, single The __-channel, ___-phase arraignment is used when customers can be served by one of the first-phase facilities but then require service from a second-phase facility, and so on. - Ans - multiple, multiple Determines which customer to serve next - Ans - priority rule preemptive discipline - Ans - A rule that allows a customer of higher priority to interrupt the service of another customer The sources of variation in waiting line problems comes from 2 things: - Ans - 1. random arrivals of customers
  2. variations in service times interarrival times - Ans - The time between customer arrivals Op mgrs should be concerned with these operating characteristics of a system: - Ans
    1. line length
  1. number of customers in the system
  2. waiting time in line
  3. total time in system
  4. service facility utilization 3 models that show how waiting-line models can help op mgrs make decisions - Ans
    1. single-server
  1. multiple-server
  2. finite-source models

After analyzing a waiting-line problem, mgmt can approve the service system by making changes in one of the 7 following service areas - Ans - 1. arrival rates

  1. number of service facilities
  2. number of phases
  3. number of servers per facility
  4. server efficiency
  5. priority rule
  6. line arraignment Theory of Constraints (TOC) - Ans - A systematic mgmt approach that focuses on actively managing those constraints that impede a firm's progress toward its goal of maximizing profits and effectively using its resources How do TOC methods increase the firm's profits? - Ans - By focusing on making materials move rapidly through the entire system. Looks at the big picture. What is the main concept behind the TOC? - Ans - The bottlenecks should be scheduled to maximize their throughput of services or products while adhering to promised completion dates What is the underlying assumption of TOC? - Ans - Demand is greater or equal to the capacity of the process that produces the service or product, otherwise marketing must work toward increasing demand 7 key principles of the Theory of Constraints - Ans - 1. The focus should be on balancing flow, not on balancing capacity
  7. Maximizing output and efficiency of every resource may not maximize throughput of the entire system
  8. An hour lost at a bottleneck or constrained resource is an hour lost for the whole system (an hour saved at bottleneck doesn't improve system)
  9. Inventory is needed only in front of the bottlenecks in order to prevent them from sitting idle. Building inventories elsewhere should be avoided
  10. Work (materials, info, customers) should be released into the system only as frequently as the bottlenecks need it
  11. Activating a nonbottleneck resource cannot increase throughput
  12. Every capital investment must be viewed from the perspective of its global impact on overall throughput, inventory, & operating expenses Practical application of the TOC involves the implementation of these 5 steps - Ans -
  13. Identify the system bottlenecks
  14. Exploit the bottlenecks
  15. Subordinate all other decisions to step 2
  16. Elevate the bottlenecks
  17. Do not let inertia set in Throughput time - Ans - Total elapsed time from the start to finish of a job or a customer being processed at one or more workcenters 2 ways to identify a bottleneck - Ans - 1. it has the highest time per unit processed
  18. it has the highest average utilization and total workload
  1. different cycle times Pacing - Ans - The movement of product from one station to the next as soon as the cycle time has elapsed What does pacing allow for? - Ans - Materials handling to be automated and requires less inventory storage area What is the most controversial aspect of line-flow layouts? - Ans - Behavioral response Mixed-model line - Ans - A production line that produces several items belonging to the same family 2 positives and 2 negatives to the mixed-model line - Ans - 1. achieves high-volume production
  2. product variety
  3. complicates scheduling
  4. increases need for good communication What does a line's cycle time depend on? - Ans - The desired output rate Linear programming - Ans - A technique that is useful for allocating scarce resources among competing demands 7 characteristics of all linear programming models - Ans - 1. objective function
  5. decision variables
  6. constraints
  7. feasible region
  8. parameters
  9. linearity
  10. nonnegativity Linear programming is a ___ process - Ans - optimization Objective function - Ans - An expression in linear programming models that states mathematically what is being maximized or minimized Decision variables - Ans - Represent choices that the decision maker can control Linear programming is based on the assumption that decision variables are ____ - Ans - continuous Constraints - Ans - Limitations that restrict the permissible choices for the decision variables What does a < constraint do and when is it used? - Ans - It puts an upper limit on some function of decision variables. Its used with maximization problems.

What does a = constraint mean and when is it used? - Ans - It means that the constraint must equal some value. It is used for certain mandatory relationships. What does a > constraint do? - Ans - It puts an lower limit on some function of decision variables. Feasible region - Ans - Represents all permissible combinations of the decision variables in a linear programming model The objective function and constraints are functions of ___ & ____ - Ans - decision variables & parameters Parameter - Ans - A value that the decision maker cannot control and that does not change once the solution is implemented Each parameter is assumed to be known with ___ - Ans - certainty The objective function and constraint equations are assumed to be ___ - Ans - linear Linearity - Ans - A characteristic of linear programming models that implies proportionality and additivity--there can be no products or powers of decision variables Nonnegativity - Ans - An assumption that the decision variables must be positive or zero steps of linear programming applications - Ans - 1. form a model of the problem Product-mix problem - Ans - A one-period type of planning problem, the solution of which yields optimal output quantities of a group of services or products subject to resource capacity and market demand constraints 3 steps to the product-mix problem - Ans - 1. Define the decision variables

  1. Write out the objective function (what is to be maximized or minimized?)
  2. Write out the constraints 4 basic types of sensitivity analysis info provided by linear programming - Ans - 1. reduced cost
  3. shadow price
  4. range of optimality
  5. range of feasibility Reduced cost - Ans - How much the objective function coefficient of a decision variable must improve before the optimal solution changes and the decision variable enters the solution w/ some positive number Shadow price - Ans - The marginal improvement in Z caused by relaxing the constraint by one unit

Most firms using lean operations use the ___ method, in which customer demand activates the production of a good or service - Ans - pull method The method often used in conventional systems which involves using forecasts of demands and producing the item before the customer orders it - Ans - push method Quality at the source - Ans - A philosophy whereby defects are caught and corrected where they are created Jidoka - Ans - Automatically stopping the process when something is wrong and then fixing the problems on the line itself as they occur Poka-yoke - Ans - Mistake-proofing methods aimed at designing fail-safe systems that minimize human error Andon - Ans - A system that gives machines and machine operators the ability to signal the occurrence of any abnormal condition such as tool malfunctions or shortage of parts. A lean system works best if the daily load on individ workstations is ____ - Ans - uniform takt time - Ans - Cycle time needed to match the rate of production to the rate of sales Heijunka - Ans - The leveling of production load by both volume and product mix (the same amount is produced each day) 2 possible heijunka methods - Ans - 1. mixed-model assembly (small lots)

  1. one lot mixed-model assembly - Ans - A type of assembly that produces a mix of models in smaller lots Five S (5S) - Ans - A methodology consisting of 5 workplace practices that are conductive to visual controls and lean production 5 practices in the 5S - Ans - 1. sorting
  2. straightening
  3. shining
  4. standardizing
  5. sustaining Sort - Ans - Separate needed items from unneeded items Total Preventative Maintenance (TPM) - Ans - Reduces the frequency and duration of machine downtime

4 principles of the Toyota Production System - Ans - 1. All work must be completely specified

  1. Every customer-supplier relationship must be direct
  2. The pathway for every service and product must be simple and direct
  3. Any improvement to the system must be made in accordance with the scientific method Why are line flows are recommended in designing lean system layouts? - Ans - Because they eliminate waste by reducing the frequency of setups one-worker, multiple machines (OWMM) cells - Ans - A one-person cell in which a worker operates several different machines simultaneously to achieve a line flow Group technology (GT) - Ans - An option for achieving line-flow layouts with low volume processes; this technique creates cells not limited to just one worker and has a unique way of selecting work to be done by the cell Value stream mapping - Ans - A qualitative lean tool for eliminating waste or "muda" that involves a current state drawing, a future state drawing, and an implementation plan 6 operating rules for the single-card system - Ans - 1. Each container must have a card
  4. The assembly line always withdraws materials from the fabrication cell
  5. Containers of parts must never be removed from a storage area without a kanban first being posted on the receiving post
  6. The containers should always contain the same number of good parts
  7. Only nondefective parts should be passed along to the assembly line
  8. Total production should not exceed the total amount authorized on the kanbans in the system 3 kanban signals - Ans - 1. cards
  9. container system
  10. containerless system Container system - Ans - An empty container signals a need to fill it Containerless system - Ans - When containers aren't needed and workers keep parts at their station signaling other workers for when they're finished Stock-keeping unit (SKU) - Ans - An individual product or item that has an identifying code and is held in inventory somewhere along the supply chain Supply chain design - Ans - Designing a firm's supply chain to meet the competitive priorities of the firm's operations strategy What guides a firm's supply chain choices? - Ans - operations strategy and competitive priorities

What is the advantage of centralized placement? - Ans - Inventory pooling Inventory pooling - Ans - A reduction in inventory and safety stock because of the merging of variable demands from customers What is the disadvantage of centralized planning? - Ans - The added cost of shipping smaller, uneconomical quantities directly to customers over long distances Forward placement - Ans - Locating stock closer to customers at a warehouse, DC, wholesaler, or retailer 2 advantages of forward placement - Ans - 1. faster delivery times

  1. reduced transportation costs What is the disadvantage to forward placement? - Ans - Safety stocks must increase 3 competitive advantages to mass customization - Ans - 1. managing customer relationships
  2. eliminating finished goods inventory
  3. increasing perceived value of services or products Channel assembly - Ans - The process of using members of the distribution channel as if they were assembly stations in the factory Outsourcing - Ans - Paying suppliers and distributers to perform processes and provide needed services and materials 2 directions of vertical integration: - Ans - 1. backward integration
  4. forward integration Backward integration - Ans - A firm's movement upward in the supply chain toward the sources of raw materials, parts, and services through acquisitions What does backward integration have the effect of? - Ans - Reducing the risk of supply Forward integration - Ans - The firm acquires more channels of distribution, such as its own distribution centers and retail stores Offshoring - Ans - A supply chain strategy that involves moving processes to another country 8 factors when deciding whether to outsource or offshore - Ans - 1. comparative labor costs
  5. rework and product returns
  6. logistics costs
  7. tariffs and taxes
  8. market effects
  9. labor laws and unions
  1. internet 3 pitfalls of outsourcing - Ans - 1. pulling the plug too quickly
  2. technology transfer
  3. process integration