MGSC 395 Midterm 2 Exam Questions with Correct Answers Latest Update 2025/2026
Capacity - Answers Maximum output rate a process/system can sustain.
Output measure - Answers Based on physical units produced; best for standardized products.
Input measure - Answers Based on resources consumed; used for customized or varied outputs.
Processing rate - Answers Units produced per unit time.
Processing time - Answers Time required per unit.
Capacity requirement - Answers Needed capacity to meet demand = (Processing hours required
/ Available time).
Utilization - Answers (Average output rate / Maximum capacity) × 100%.
Buffering vs. Efficiency tradeoff - Answers Lower utilization = more flexibility but less efficiency.
Economies of scale - Answers Lower cost per unit as output increases due to spreading fixed
costs, learning effects, etc.
Diseconomies of scale - Answers Higher per-unit costs as output grows due to complexity or
inefficiency.
Multiple products capacity - Answers Weighted by demand or time requirements per product.
Throughput - Answers Average output rate of a process.
Little's Law - Answers L = λW → Average inventory (L) = Throughput rate (λ) × Average time in
system (W).
Assumptions of Little's Law - Answers Steady state system, consistent average inflow/outflow.
Throughput vs. Capacity - Answers Throughput limited by system capacity and demand.
Importance of throughput - Answers Directly affects efficiency, customer satisfaction, and
profitability.
Constraint/Bottleneck - Answers Step that limits overall system capacity.
Theory of Constraints (TOC) - Answers Management philosophy to identify and elevate
bottlenecks.
Drum-Buffer-Rope (DBR) - Answers Drum: bottleneck pace; Buffer: protects bottleneck; Rope:
coordinates flow.
Throughput time - Answers Total time for a product to pass through the system.
Capacity - Answers Maximum output rate a process/system can sustain.
Output measure - Answers Based on physical units produced; best for standardized products.
Input measure - Answers Based on resources consumed; used for customized or varied outputs.
Processing rate - Answers Units produced per unit time.
Processing time - Answers Time required per unit.
Capacity requirement - Answers Needed capacity to meet demand = (Processing hours required
/ Available time).
Utilization - Answers (Average output rate / Maximum capacity) × 100%.
Buffering vs. Efficiency tradeoff - Answers Lower utilization = more flexibility but less efficiency.
Economies of scale - Answers Lower cost per unit as output increases due to spreading fixed
costs, learning effects, etc.
Diseconomies of scale - Answers Higher per-unit costs as output grows due to complexity or
inefficiency.
Multiple products capacity - Answers Weighted by demand or time requirements per product.
Throughput - Answers Average output rate of a process.
Little's Law - Answers L = λW → Average inventory (L) = Throughput rate (λ) × Average time in
system (W).
Assumptions of Little's Law - Answers Steady state system, consistent average inflow/outflow.
Throughput vs. Capacity - Answers Throughput limited by system capacity and demand.
Importance of throughput - Answers Directly affects efficiency, customer satisfaction, and
profitability.
Constraint/Bottleneck - Answers Step that limits overall system capacity.
Theory of Constraints (TOC) - Answers Management philosophy to identify and elevate
bottlenecks.
Drum-Buffer-Rope (DBR) - Answers Drum: bottleneck pace; Buffer: protects bottleneck; Rope:
coordinates flow.
Throughput time - Answers Total time for a product to pass through the system.
