Exam 5: Strategic Capacity Management

If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate?

Specialized workers require broader training than flexible workers.

A capacity cushion is the amount of capacity less than expected demand.

The level of capacity for which the process was designed and the volume of output at which average unit cost is minimized is?

The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as?

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity cushion?

When deciding to add capacity to a factory, which of the following need not be considered?

A production facility develops virtuosity and works best when it is focused on a widely varied set of production objectives.

Outsourcing is a common source of external capacity.

A production facility works best when it focuses on a fairly limited set of production objectives.

Which of the following is not a step used in determining production capacity requirements?

The volatility of demand on a service delivery system is much higher than that on a manufacturing production.

Low rates of capacity utilization in service organizations are never appropriate.

The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of labor-intensive resources.

Overtime and personnel transfers are solutions to capacity problems in the intermediate term.

The time duration in which capacity planning is monthly or quarterly is?

The frequency of adding to production capacity should balance the costs of upgrading too frequently and the costs of upgrading too infrequently.

The output that a system is capable of achieving over a period of time is?

At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000, with a probability of 90%; the expected benefit of selecting machine B is $80,000, with a probability of 50%; and the expected benefit of selecting machine C is $60,000, with a probability of 75%?

Which of the following models uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step?