Nonbottleneck management principles

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Reference no: EM131791646

1. Based upon your readings in the textbook, consider the following scenario: Marina Hotels is a leading chain of hotels. Its managers reserve 30% of the rooms available only to the members of its club. They also provide the rooms at subsidized prices to these members. In this scenario, which of the following components of revenue management system is most likely used by Marina Hotels?

a. Investment

b. Allocation

c. Capacity expansion

d. Capacity sharing

2. Customers entering a queue (waiting line) at a cafeteria on a first come, first served basis. The arrival rate follows a Poisson distribution, and the maximum length is unlimited. If the average number of arrivals is 6 customers per minute and the average service rate per minute of a single server is 10 per minute, what is the average number of customers in the system? Assume Model 1.

a. 0.6

b. 0.9

c. 1.50

d. 0.25

e. none of the above

3. Thinking in terms of the Theory of Constraints, Lumeris Inc., an automobile manufacturer, has an inflexible work schedule and requires its workers to work nine hours a day and six days a week. Its laborers do not have adequate skills to perform their job efficiently. The inflexible work schedule and inadequate labor skills are examples of _____.

a. physical constraints

b. nonphysical constraints

c. bottleneck activities

d. work orders

e. idle time

4. Under the Theory of Constraints, nonbottleneck management principles differ from bottleneck management principles because according to nonbottleneck management principles, _____.

a. idle time is acceptable if there is no work to do

b. an hour lost at a nonbottleneck resource is an hour lost for the entire process or factory output

c. the input should always exceed the capacity

d. An hour lost at a nonbottleneck resource is an hour gained at another nonbottleneck point in the factory output

e. large order sizes should be used to minimize setup time and maximize resource utilization

5. Inventory that represents partially completed products waiting further processing is called ____ inventory.

a. Raw materials

b. Work-in-process

c. Cycle

d. Safety stock

e. Perishable stocks in use

Reference no: EM131791646

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