11. Unlike a focused factory, an unfocused factory is best characterized by: a.
ID: 377756 • Letter: 1
Question
11. 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.
12. 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
13. 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
14. 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
15. 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.
16. 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
Explanation / Answer
11) The answer is D - Dissimilar product line, A focused factory is focused on the single product line, whereas the unfocused factory has the various product line, hence called unfocused factories.
12) The Answer is A - The economies of scales, it is what the question says, it saves the cost by manufacturing large amount of products in a single batch.
13) The Answer is C - capacity straddle strategy, this means increments in small quantity whenever to meet the demand
14) The Answer is e, Small capacity increases to match demand, the production is adjusted as per to match the demand, when the demand is over it would see a few spikes in production.
15) The Answer is B, the appointment time and associated revenue is perishable, and the doctor may lose revenue. If the patient does not show up, it will lead to loss of his consultation fees and the prospect patient who did not get appointment due to this
16) The Answer is A, a minimum rate of output per unit time, more the output an service provides in the stipulated time more revenue it generates.
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