Operations Management 2nd Edition By Gerard Cachon – Test Bank

Operations Management 2nd Edition By Gerard Cachon – Test Bank

Operations Management, 2e (Cachon)
Chapter 7 Process Interruptions

1) Setup involves different amounts of time depending on the actual number of units to be made.

Answer: FALSE
Explanation: Setup involves a fixed amount of time that is not directly related to the amount actually produced.
Difficulty: 1 Easy
Topic: Setup Time
Learning Objective: 07-01 Identify the setup time in a process.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible

2) The capacity of a resource with setups is dependent on the batch size.

Answer: TRUE
Explanation: An increase in batch size will increase the capacity of a resource with setups with diminishing returns.
Difficulty: 1 Easy
Topic: Capacity of a Process with Setups
Learning Objective: 07-02 Evaluate the capacity of a resource that has a setup time and is operated with a given batch size.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible

3) A resource with setups can achieve a flow rate that is equal to its capacity.

Answer: FALSE
Explanation: The traditional formula for utilization = flow rate/capacity. A resource with setups cannot be utilized 100%, as production must stop when it is doing a setup.
Difficulty: 1 Easy
Topic: Utilization in a Process with Setups
Learning Objective: 07-03 Evaluate the utilization of a resource that has a setup time.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible

4) A batch size should be chosen for a process with setups to make a trade-off between capacity and inventory.

Answer: TRUE
Explanation: A batch size should be chosen for a process with setups so that it is not so large as to incur high inventory holding costs and it is not so small as to constrain the capacity of the process.
Difficulty: 1 Easy
Topic: Choose the Batch Size in a Process with Setups
Learning Objective: 07-05 Find the batch size that minimizes inventory while not constraining the flow through a process.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible

5) The average inventory of all items produced by a resource with setups will increase when there is an increase in the variety of products produced on that resource.

Answer: TRUE
Explanation: Producing a variety of products requires more setups, which leads to larger batch sizes and therefore more inventory.
Difficulty: 1 Easy
Topic: Setup Times and Product Variety
Learning Objective: 07-06 Find the production quantities of each item produced by a resource such that the resource minimizes inventory while satisfying all demand.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible

6) It is impossible to increase efficiency and variety at the same time.

Answer: FALSE
Explanation: SMED and heijunka are ideas that enable Toyota to increase both efficiency and variety at the same time.
Difficulty: 1 Easy
Topic: Managing Processes with Setup Times
Learning Objective: 07-07 Explain the different approaches for managing a process with setup times.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation; Screen Reader Compatible