Question 1

Economies of scope exist when multiple products can be produced at a lower cost in combination than they can separately.

Accepted Answer

A) True 
 B)False

Question 2

The larger the capacity cushion the better.

Accepted Answer

A) True 
 B)False

Question 3

decision tree problem does not need probabilities or payoffs to generate a solution.

Accepted Answer

A) True 
 B)False

Question 4

Capacity can be defined as the ability to hold,receive,store,or accommodate.

Accepted Answer

A) True 
 B)False

Question 5

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%?

Accepted Answer

A) Machine A 
B) Machine B 
C) Machine C 
D) You would be indifferent between machines A and C 
A) Machine A 
B) Machine B 
C) Machine C 
D) You would be indifferent between machines A and C

Question 6

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 long-range competitive strategy.

Accepted Answer

A) True 
 B)False

Question 7

The ultimate in plant flexibility is a one-hour-changeover time plant.

Accepted Answer

A) True 
 B)False

Question 8

Best operating level is usually a multiple of the level of capacity for which a process was designed.

Accepted Answer

A) True 
 B)False

Question 9

Long-range capacity planning requires top management participation.

Accepted Answer

A) True 
 B)False

Question 10

Making adjustments to eliminate the variance between planned and actual output is tied into intermediate range capacity planning.

Accepted Answer

A) True 
 B)False

Question 11

Capacity can be defined as the amount of available resource inputs relative to requirements for output over a particular period of time.

Accepted Answer

A) True 
 B)False

Question 12

The optimal utilization rate of a service operation is context specific.Planning for low utilization rates is appropriate when both the degree of uncertainty and the stakes are high as in emergency response services.Which of the following services should plan for a high utilization rate?

Accepted Answer

A) The fire department 
B) An expensive restaurant 
C) A hospital ambulance service 
D) A stage performance 
E) A customer help line 
A) The fire department 
B) An expensive restaurant 
C) A hospital ambulance service 
D) A stage performance 
E) A customer help line

Question 13

The capacity cushion is the ratio of capacity used to the best capacity level.

Accepted Answer

A) True 
 B)False

Question 14

Compared with a service operation,a manufacturing operation's capacity is which of the following?

Accepted Answer

A) More dependent on time and location 
B) Subject to more volatile demand fluctuations 
C) Utilization more directly impacts quality 
D) Demand can be smoothed by inventory policies 
E) More capable of reacting to demand fluctuations 
A) More dependent on time and location 
B) Subject to more volatile demand fluctuations 
C) Utilization more directly impacts quality 
D) Demand can be smoothed by inventory policies 
E) More capable of reacting to demand fluctuations

Question 15

In decision tree analysis the time value of money is ignored because you are only concerned with cash costs.

Accepted Answer

A) True 
 B)False

Economies of scope exist when multiple products can be produced at a lower cost in combination than they can separately.

The larger the capacity cushion the better.

decision tree problem does not need probabilities or payoffs to generate a solution.

Capacity can be defined as the ability to hold,receive,store,or accommodate.

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 long-range competitive strategy.

The ultimate in plant flexibility is a one-hour-changeover time plant.

Best operating level is usually a multiple of the level of capacity for which a process was designed.

Long-range capacity planning requires top management participation.

Making adjustments to eliminate the variance between planned and actual output is tied into intermediate range capacity planning.

Capacity can be defined as the amount of available resource inputs relative to requirements for output over a particular period of time.

The optimal utilization rate of a service operation is context specific.Planning for low utilization rates is appropriate when both the degree of uncertainty and the stakes are high as in emergency response services.Which of the following services should plan for a high utilization rate?

The capacity cushion is the ratio of capacity used to the best capacity level.

Compared with a service operation,a manufacturing operation's capacity is which of the following?

In decision tree analysis the time value of money is ignored because you are only concerned with cash costs.

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

PART-A: Learning Curves

Projects Manufacturing and Service Processes

Manufacturing Processes

PART-A: Break-Even Analysis

Service Processes

Sales and Operations Planning

Material Requirements Planning

Quality Management and Six-Sigma Supply Chain Processes and Analytics

Inventory Management

Lean Supply Chains

Global Sourcing and Procurement

Location, Logistics and Distribution

Filters

Exam 4: Strategic Capacity Management

Economies of scope exist when multiple products can be produced at a lower cost in combination than they can separately.

The larger the capacity cushion the better.

decision tree problem does not need probabilities or payoffs to generate a solution.

Capacity can be defined as the ability to hold,receive,store,or accommodate.

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 long-range competitive strategy.

The ultimate in plant flexibility is a one-hour-changeover time plant.

Best operating level is usually a multiple of the level of capacity for which a process was designed.

Long-range capacity planning requires top management participation.

Making adjustments to eliminate the variance between planned and actual output is tied into intermediate range capacity planning.

Capacity can be defined as the amount of available resource inputs relative to requirements for output over a particular period of time.

The optimal utilization rate of a service operation is context specific.Planning for low utilization rates is appropriate when both the degree of uncertainty and the stakes are high as in emergency response services.Which of the following services should plan for a high utilization rate?

The capacity cushion is the ratio of capacity used to the best capacity level.

Compared with a service operation,a manufacturing operation's capacity is which of the following?

In decision tree analysis the time value of money is ignored because you are only concerned with cash costs.

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

PART-A: Learning Curves

Projects Manufacturing and Service Processes

Manufacturing Processes

PART-A: Break-Even Analysis

Service Processes

Sales and Operations Planning

Material Requirements Planning

Quality Management and Six-Sigma Supply Chain Processes and Analytics

Inventory Management

Lean Supply Chains

Global Sourcing and Procurement

Location, Logistics and Distribution

Filters