Exam 4: Strategic Capacity Management

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

The smaller the capacity cushion the better.

In solving a decision tree problem,calculations start at the ends of the "branches" of the tree and work backwards to the base of the tree.

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

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

At some point,the size of a growing plant can become too large and diseconomies of scale becomes a capacity planning problem.

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

The objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities,equipment,and overall labor force size)that best supports the company's short-range competitive strategy.

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?

piece of equipment with twice the capacity of another piece typically costs twice as much to purchase and to operate.

Capacity planning that involves hiring,layoffs,some new tooling,minor equipment purchases,and subcontracting is considered as which one of the following planning horizons?

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

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?

The problem of keeping demand sufficiently high to keep a large factory busy is a sales issue and not a diseconomy of scale.

Capacity planning involving acquisition or disposal of fixed assets such as buildings,equipment or facilities is considered as which one of the following planning horizons?

Capacity planning is generally viewed in three time durations: Immediate,Intermediate,and Indeterminate.

The way to build in greater flexibility in your workers is to do which of the following?

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

What is an important difference between capacity planning in services as contrasted to capacity planning in manufacturing operations?

Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations?