Question 1

The effective capacity can be maintained for an extended period of time.

Accepted Answer

A) True 
 B)False  True

Question 2

An experience curve displays the relationship between total direct labor per unit and

Accepted Answer

A) Annual quantity of products produced 
B) Average quantity of products produced 
C) Cumulative quantity of products produced 
D) Years of worker experience 
E) Difficulty of product design 
A) Annual quantity of products produced 
B) Average quantity of products produced 
C) Cumulative quantity of products produced 
D) Years of worker experience 
E) Difficulty of product design C

Question 3

Put the following steps for assessing future capacity needs in the correct order.

Accepted Answer

A) i,ii,iii,iv 
B) ii,i,iv,iii 
C) iv,iii,ii,i 
D) i,iv,iii,ii 
E) iii,ii,iv,i 
A) i,ii,iii,iv 
B) ii,i,iv,iii 
C) iv,iii,ii,i 
D) i,iv,iii,ii 
E) iii,ii,iv,i B

Question 4

Experience curves generally display a linear relationship between labor and quantity produced.

Accepted Answer

A) True 
 B)False

Question 5

Yield management is probably not effective for which of the following items?

Accepted Answer

A) Movie theaters 
B) Restaurants 
C) Selling cars 
D) Apartment rentals 
E) Airlines 
A) Movie theaters 
B) Restaurants 
C) Selling cars 
D) Apartment rentals 
E) Airlines

Question 6

Capacity only has to do with building square footage.

Accepted Answer

A) True 
 B)False

Question 7

A local company supplies city schools with supply packages.How many assembly lines are needed if the company works 10 hours a day during July to meet demand.They wish to have a 20% capacity cushion.How many assembly lines should they have?

Accepted Answer

M = ((2400 +120)+ (4500 + 180)

Question 8

Why is it often difficult to match capacity and demand?

Accepted Answer

A) Capacity is expensive 
B) Determining capacity is difficult 
C) Capacity increases often come in large increments 
D) Forecasting capacity is difficult 
E) It is easy to match capacity and demand 
A) Capacity is expensive 
B) Determining capacity is difficult 
C) Capacity increases often come in large increments 
D) Forecasting capacity is difficult 
E) It is easy to match capacity and demand

Question 9

The Home-Cooking Gourmet provides four meal packs that can be prepared at home in four minutes.Each meal pack is prepared on a separate production line.The company works five days per week with a single shift for 8 hours.Management wants a 20% capacity cushion.All meals can be prepared on a standard assembly line.Assembly lines are added on the basis of demand.How many production lines are required for the following parameters?

Accepted Answer

M = ((2250 + 81)+ (2975 + 102)

Question 10

Identify five factors that affect the size of a capacity cushion.

Accepted Answer

1. Variability of demand
2. Availability

Question 11

In services,capacity must be available when the customer wants the service.

Accepted Answer

A) True 
 B)False

Question 12

Capacity measures must be tailored to fit specific situations.

Accepted Answer

A) True 
 B)False

Question 13

What are the implications for utilization if the maximum capacity is increased,and everything else remains constant?

Accepted Answer

A) Utilization will stay the same 
B) Utilization will increase 
C) Utilization will decrease 
D) Utilization will vary randomly 
E) None of these options 
A) Utilization will stay the same 
B) Utilization will increase 
C) Utilization will decrease 
D) Utilization will vary randomly 
E) None of these options

Question 14

When is an aggressive expansion strategy most advantageous?

Accepted Answer

A) In a steady market 
B) In a declining market 
C) In a growing market 
D) In a competitive market 
E) In a dominant market 
A) In a steady market 
B) In a declining market 
C) In a growing market 
D) In a competitive market 
E) In a dominant market

Question 15

Revenue management focuses on maximizing revenue rather than simply maximizing utilization.

Accepted Answer

A) True 
 B)False

Question 16

The more variation a company has in demand,the easier it is to determine the capacity requirement of a facility.

Accepted Answer

A) True 
 B)False

Question 17

A difference between projected demand and current capacity is

Accepted Answer

A) Capacity cushion 
B) Capacity gap 
C) Capacity projection 
D) Required capacity 
E) Resources needed 
A) Capacity cushion 
B) Capacity gap 
C) Capacity projection 
D) Required capacity 
E) Resources needed

Question 18

The school supply company can process any of the course packs for shipping in the same amount of time,shown below.Should additional processing or shipping be expanded? That is,what is the bottleneck in this operation?

Accepted Answer

@#IMG-DLM& 74.5 units per hour are produ

Question 19

A bottleneck is the step in a process that has the longest cycle time.

Accepted Answer

A) True 
 B)False

Question 20

As service utilization increases,what will the effect on quality be?

Accepted Answer

A) Quality levels will remain the same 
B) Quality levels will increase 
C) Quality levels will decrease 
D) They will change inversely 
E) The effect is random 
A) Quality levels will remain the same 
B) Quality levels will increase 
C) Quality levels will decrease 
D) They will change inversely 
E) The effect is random

The effective capacity can be maintained for an extended period of time.

An experience curve displays the relationship between total direct labor per unit and

Put the following steps for assessing future capacity needs in the correct order.

Experience curves generally display a linear relationship between labor and quantity produced.

Yield management is probably not effective for which of the following items?

Capacity only has to do with building square footage.

A local company supplies city schools with supply packages.How many assembly lines are needed if the company works 10 hours a day during July to meet demand.They wish to have a 20% capacity cushion.How many assembly lines should they have?

Why is it often difficult to match capacity and demand?

Identify five factors that affect the size of a capacity cushion.

In services,capacity must be available when the customer wants the service.

Capacity measures must be tailored to fit specific situations.

What are the implications for utilization if the maximum capacity is increased,and everything else remains constant?

When is an aggressive expansion strategy most advantageous?

Revenue management focuses on maximizing revenue rather than simply maximizing utilization.

The more variation a company has in demand,the easier it is to determine the capacity requirement of a facility.

A difference between projected demand and current capacity is

The school supply company can process any of the course packs for shipping in the same amount of time,shown below.Should additional processing or shipping be expanded? That is,what is the bottleneck in this operation?

A bottleneck is the step in a process that has the longest cycle time.

As service utilization increases,what will the effect on quality be?

Operations and Supply Chain Strategy

Quality Management

New Product Development

Process Design and Analysis

Forecasting

Independent Demand Inventory

Dependent Demand Inventory

Project Management

Optimization and Simulation Modeling

Quality Improvement Methods

Lean Enterprise

Technology and Integrated Supply Management

Global Supply Chain and Service Integration

Filters

Exam 10: Capacity Planning

The effective capacity can be maintained for an extended period of time.

An experience curve displays the relationship between total direct labor per unit and

Put the following steps for assessing future capacity needs in the correct order.

Experience curves generally display a linear relationship between labor and quantity produced.

Yield management is probably not effective for which of the following items?

Capacity only has to do with building square footage.

A local company supplies city schools with supply packages.How many assembly lines are needed if the company works 10 hours a day during July to meet demand.They wish to have a 20% capacity cushion.How many assembly lines should they have?

Why is it often difficult to match capacity and demand?

Identify five factors that affect the size of a capacity cushion.

In services,capacity must be available when the customer wants the service.

Capacity measures must be tailored to fit specific situations.

What are the implications for utilization if the maximum capacity is increased,and everything else remains constant?

When is an aggressive expansion strategy most advantageous?

Revenue management focuses on maximizing revenue rather than simply maximizing utilization.

The more variation a company has in demand,the easier it is to determine the capacity requirement of a facility.

A difference between projected demand and current capacity is

The school supply company can process any of the course packs for shipping in the same amount of time,shown below.Should additional processing or shipping be expanded? That is,what is the bottleneck in this operation?

A bottleneck is the step in a process that has the longest cycle time.

As service utilization increases,what will the effect on quality be?

Operations and Supply Chain Strategy

Quality Management

New Product Development

Process Design and Analysis

Forecasting

Independent Demand Inventory

Dependent Demand Inventory

Project Management

Optimization and Simulation Modeling

Quality Improvement Methods

Lean Enterprise

Technology and Integrated Supply Management

Global Supply Chain and Service Integration

Filters