MGSC 395 Exam 2 Branner Complete Questions With Accurate Answers Graded A+.

Capacity - correct answers The maximum rate of output of a process or a system Measures of Capacity - correct answers Input and Output Input Examples: Hospital - number of beds, Airline - number of planes, Restaurant - number of seats Output Examples: Hospital - number of patients treated per day, Airline - seat miles flown per day, Restaurant - customers served per day Utilization - correct answers The degree to which equipment, space, or labor is being used Economies of Scale - correct answers The average unit of cost of a service or goods can be reduced by increasing its output rate Diseconomies of Scale - correct answers A facility can become so large that the average cost per unit increases as the facility's size increases Capacity Cushion - correct answers The amount of reserve capacity a process uses to handle sudden increases in demand or temporary losses of production capacity Expansionist Strategy - correct answersStays ahead of demand; can preempt the expansion of other firms Little's Law - correct answersLaw that states the number of customers in a waiting-line system to the arrival rate and waiting time of customers Bottleneck - correct answersA type of constraint that is defined as any resource whose available capacity limits the organization's ability Seven Key Principles of the Theory of Constraints (Most important: 1 & 4) - correct answers1. The focus should be on balancing flow, not on balancing capacity. 2. Maximizing the output and efficiency of every resource may not maximize the throughput of the entire system. 3. An hour lost at a bottleneck or constrained resource is an hour lost for the whole system. In contrast, an hour saved at a non-bottleneck resource is a mirage, because it does not make the whole system more productive. 4. Inventory is needed only in front of bottlenecks to prevent them from sitting idle and in front of assembly and shipping points to protect customer schedules 5. Work should be released into the system only as frequently as needed by the bottlenecks. Bottleneck flows should be equal to the market demand. 6. Activating a non-bottleneck resource is not the same as utilizing a bottleneck resource. It doesn't increase throughput or promote better performance. 7. Every capital investment must be viewed from the perspective of the global impact on overall throughput, inventory, and operating e Traditional Method - correct answers Select the product mix according to the highest overall contribution margin of each product Bottleneck Method - correct answers Select the product mix according to the dollar contribution margin per minute of processing time at the bottleneck Line Balancing - correct answers the assignment of work to stations in a line process so as to achieve the desired output rate with the smallest number of workstations Objective Function - correct answers What is being maximized or minimized (mathematically); provides the scorecard which attractiveness of different solutions is judged Constraints - correct answers Limitations that restrict the permissible choices for the decision variables Linearity - correct answers A characteristic of linear programming models that implies proportionality and additivity—there can be no products or powers of decision variables. Nonnegativity - correct answers- The decision variables must be positive or zero. - Expressed as ≥ 0 constraint for each decision variable Critical Path - correct answers The sequence of activities in a project that is expected to take the longest to complete Activity Slack - correct answers The maximum length of time that an activity can be delayed without delaying the entire project Earliest Start - correct answers Earliest Finish of previous activity Earliest Finish - correct answers Earliest Start + Estimated Time Latest Start - correct answers Latest Finish - Estimated Time Latest Finish - correct answers Latest Start of activity that immediately follows