MGT 3900 Chapter 05 Test Bank KEY1. All flow units should have the same exit point in a production process.
FALSE
Attrition loss is an example of when
... [Show More] flow units exit the process before completion. Therefore, some flow units exit the process earlier than others.
2. A bottleneck resource must have an implied utilization less than 100%.
FALSE
An implied utilization less than 100% simply means that the resource has capacity to meet demand. It has no bearing on if the resource is a bottleneck.
3. The overall process yield is the sum of the yields of all resources.
FALSE
The overall process yield is the product of the yields of all resources.
4. When analyzing a process flow with flow unit dependent processing times, the unit of analysis should be a unit of demand.
FALSE
The unit of analysis for a flow unit becomes a minute or hour of work instead of a unit of demand when analyzing a process flow with flow unit dependent processing times.
5. Rework always lowers the process capacity.
FALSE
Rework lowers the process capacity only when it involves a bottleneck resource in restoring reworked units.
6. Reworked units consume more time at a resource involved with rework than good units.
TRUE
Reworked units revisit a resource and therefore consume more time at that resource than good units.
7. Customers at an e-retailer site abandon their shopping carts without completing their purchase. This is an example of .
a. attrition loss
b. attrition gain
c. attention loss
d. attention gain
Attrition loss refers to flow units leaving the process without completion.
8. A store manager at C&A notices that 20% of customers come to browse but not buy, 5% of them need assistance to complete their purchases, and 3% simply window shop. This is a situation where customers take different paths through the shopping process.
a. process mix
b. operation mix
c. product mix
d. market mix
A product mix refers to a combination of different flow unit types moving through a process.
9. A store manager at C&A notices that not all customers who walk into the store will make a purchase. About 20% come to browse but not buy, 10% need assistance from an assistant manager, and 5% need assistance from the store manager. C&A has one greeter, two assistant managers, one store manager, and six cashiers. In setting up a demand matrix, how many rows of resource type and columns of customer type does C&A need?
a. 10, 3
b. 10, 4
c. 4, 4
d. 5, 5
There are four types of resources and four types of customers. Resources = one greeter, two assistants, one store manager. Cashiers don’t count.
10. Not all the 100 customers who walk into the C&A store per day will make a purchase. About 20% come to browse but not buy, 10% need assistance to complete a purchase, and 5% need assistance but leave without making a purchase. The other 65% purchase something without requiring assistance. C&A has one greeter (who greets every customer), two assistants (who deal with customers who need assistance), and two cashiers (who serve customers who purchase something). What does the demand matrix for C&A look like? [Show Less]