Exam 10: Capacity Planning

What type of service business is more likely to seek 100% utilization?

Using input measures to assess capacity is more common when

A capacity gap is the difference between projected demand and current capacity.

Capacity decisions have to do with all the following except

Experience curves express an inverse relationship between labor and the quantity produced.

A wait-and-see capacity strategy typically fits best with what type of industries?

As service utilization increases,costs and service quality will also increase.

Which of the following is not a term used to describe service capacity?

Compare and contrast a "wait-and-see" capacity strategy with an "aggressive expansion" strategy.

Because services have much more volatile demand than manufactured products,capacity planning must look at the averages instead of peak periods.

Qualitative factors are relatively unimportant in capacity decisions.

The variability of demand will determine the amount of capacity cushion that is required.

Capacity management is a strategic long-term business decision.

Diseconomies of scale mean that inefficiencies occur when an organization gets too big.

When are yield management techniques appropriate for an organization?

Describe the implications of either a low or high utilization rate?

Capacity decisions are relevant to supply chains and individual companies.

The decision to outsource is seldom part of a capacity decision-making process.

Economies of scale suggest that products will have a lower per unit cost.

The amount of capacity that is unused on average refers to what term?