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SCM 303 Exam 2 Questions and Correct Answers the Latest Update
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An inspection _____ checks or verifies the results of another activity. Identify the characteristics of a strategic capacity change. - It includes large increases or decreases in capacity. -It takes long time to implement. - It requires changes to labor, equipment, and space. ______ is ...

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  • November 7, 2024
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  • 2024/2025
  • Exam (elaborations)
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SCM 303 Exam 2 Questions and Correct
Answers the Latest Update
An inspection _____


✓ checks or verifies the results of another activity.



Identify the characteristics of a strategic capacity change.


✓ - It includes large increases or decreases in capacity.
✓ -It takes long time to implement.
✓ - It requires changes to labor, equipment, and space.



______ is defined as the percentage of process capacity that is actually used.


✓ Utilization



Match the limiting resource with its time frame with the type of capacity change

required.


✓ - Equipment, space - short term --> Rental or leasing
✓ - Low-skilled labor - short term --> hiring part time or overtime
✓ -Physical plant - long term --> New building, outsourcing



Identify the four primary reasons for economies of scale in operations.


✓ -Allocation of fixed costs
✓ -Equipment and construction costs
✓ -Lower cost for purchases
✓ -Learning curves or practice improves output volume as employees gain skill


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A car manufacturing firm uses a special type of alloy to manufacture its car

chassis. As a result of the process, environmental waste is produced. In this

scenario, environmental waste is an example of ______.


✓ unintended output



The constraining activity in a process that limits the overall output is called a

______.


✓ bottleneck



Match the outputs with their respective business process.


✓ -Supply management--> Order fulfillment, production schedules, goods and services
✓ -Innovation --> New products and new production technologies
✓ -Strategic planning --> Vision and long-term objectives and plans
✓ -Customer service --> Order entry, delivery commitments, resolve customer
problems
✓ - Performance measurement --> performance variances, trends



______ is the percentage of units successfully produced as a percentage of inputs.


✓ Yield rate



A ____ is a system of structured activities that use resources to transform inputs

into valuable outputs.


✓ process



Identify the statements that are true of maximum capacity.


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✓ - Maximum capacity is also known as design capacity.
✓ -Design capacity is an engineering assessment of maximum output, assuming
continuous operation except for maintenance and repair time.
✓ -An assumption of maximum capacity is that all equipment and workers are fully
operational for the maximum amount of available time.
✓
✓ -Producing at a rate of maximum capacity can only be sustained for a short time.



______ time is the amount that an item spends waiting.


✓ Wait



Identify the three general strategies involved while determining when to change

capacity relative to demand.


✓ -Capacity lag strategy
✓ -Capacity lead strategy
✓ -Adding or removing capacity



A _________ is a measure, a standard, and a consequence that work together to

close the gap between what is valued by the customer and what is intended by

the organization.


✓ metric



Match the process activity with its associated resources that limit capacity.




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