Test Bank For Operations Management Processes And Supply Chains 12th Edition

Test Bank For Operations Management Processes And Supply Chains 12th Edition

Chapter 5 Constraint Management

5.1 The Theory of Constraints

1) A bottleneck is an operation that has the lowest effective capacity of any operation in the process.

Answer: TRUE

Difficulty: Easy

Keywords: bottleneck, effective capacity

Learning Outcome: Explain options for managing bottlenecks and managing capacity in service and manufacturing processes

AACSB: Application of Knowledge

Learning Obj.: Explain the theory of constraints.

2) The process with the least capacity is called a bottleneck if its output is less than market demand.

Answer: TRUE

Difficulty: Moderate

Keywords: bottleneck, capacity

Learning Outcome: Explain options for managing bottlenecks and managing capacity in service and manufacturing processes

AACSB: Application of Knowledge

Learning Obj.: Explain the theory of constraints.

3) Constraints at any step causes imbalance in the capacity of a process. As a result, the overall performance of a system is affected which in turn leads to low customer satisfaction and loss of money even with high sales level.

Answer: TRUE

Difficulty: Moderate

Keywords: capacity, customer satisfaction

Learning Outcome: Explain options for managing bottlenecks and managing capacity in service and manufacturing processes

AACSB: Application of Knowledge

Learning Obj.: Explain the theory of constraints.

4) The Theory of Constraints method is also referred to as the drum-buffer-rope method.

Answer: FALSE

Difficulty: Easy

Keywords: TOC, theory of constraints, drum-buffer-rope

Learning Outcome: Explain options for managing bottlenecks and managing capacity in service and manufacturing processes

AACSB: Application of Knowledge

Learning Obj.: Explain the theory of constraints.

5) Any system composed of resources that are operating at maximum output will, by definition, have maximum output for the entire system.

Answer: FALSE

Difficulty: Moderate

Keywords: constraint, bottleneck, TOC

Learning Outcome: Explain options for managing bottlenecks and managing capacity in service and manufacturing processes

AACSB: Application of Knowledge

Learning Obj.: Explain the theory of constraints.