OPERATION MANAGEMENT
2nd Edition
ISBN: 9781260242423
Author: CACHON
Publisher: MCG
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Chapter 17, Problem 8CQ
Summary Introduction
To determine: The statement which express the motivation behind the expressing “buffer or suffer”?
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Process time is part of cycle time. The process time of a business process refers to:
a. alWways is the largest part of cycle time.
b. timMe a customer spends waiting in a queue (e.g., time customer spends waiting in a drive-thru line)
c. is ofFten considered to be value-added time to the customer.
d. timMe from beginning to completion of the business process.
Mrs. Freddy Mitchell, in her lecture, stated that a transaction processing system (TPS) is software that ensures the completion of business transactions and keeps track of those business transactions. An online transaction processing system (OTPS) is an equivalent system that online merchants use for e-commerce. The TPS ensures that each transaction is successful by storing, sending, and receiving information via a database. She added that because the process is lengthy, it is broken down into cycles, which are broken further into systems and subsystems.
Zara- Lee, a participant in Mrs. Freddy Mitchell’s Lecture series, got confused as Mrs. Freddy Mitchell began to elaborate on the many different systems, and Zara- Lee mentioned to YOU that she is experiencing information overload.
YOU then responded that Mrs. Freddy Mitchell’s explanation was clear and concise, and YOU would explain the revenue cycle, its components, and the sub-systems that constitute that cycle after class.…
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