Question 1

What is the utilization of a packaging machine that can package a maximum of 120 units per hour if the unit has averaged 108 units per hour over the last month?

Accepted Answer

Utilizatio

Question 2

Describe a process to assess future capacity needs.

Accepted Answer

Estimate future capacity requirements,th

Question 3

Utilization is based on average capacity.

Accepted Answer

A) True 
 B)False

Question 4

Which is a reason that services experience greater demand volatility for multiple reasons?

Accepted Answer

A) Services cannot be stored 
B) More customer interaction 
C) Different customer needs 
D) Service demand is dependent on customer behavior 
E) All of these options are reasons 
A) Services cannot be stored 
B) More customer interaction 
C) Different customer needs 
D) Service demand is dependent on customer behavior 
E) All of these options are reasons

Question 5

Which of the following is not a measure of capacity?

Accepted Answer

A) Number of meals served in a restaurant 
B) Visitors per day at a zoo 
C) Number of packages delivered per day 
D) Chairs made per day 
E) Demand for services provided 
A) Number of meals served in a restaurant 
B) Visitors per day at a zoo 
C) Number of packages delivered per day 
D) Chairs made per day 
E) Demand for services provided

Question 6

Capacity decisions only have to do with expansion and not with shrinking capacity.

Accepted Answer

A) True 
 B)False

Question 7

How does economy of scale result in an increase in effective capacity?

Accepted Answer

A) Because more time will be spent processing instead of setting up 
B) Because setup time will be increased 
C) Because quantity discounts will be less 
D) Because average inventory levels are decreased 
E) Because fewer managers are needed 
A) Because more time will be spent processing instead of setting up 
B) Because setup time will be increased 
C) Because quantity discounts will be less 
D) Because average inventory levels are decreased 
E) Because fewer managers are needed

Question 8

Which of the following can serve as a substitute for adding capacity?

Accepted Answer

A) Incorporating flexibility 
B) Capacity cushion 
C) Aggressive expansion 
D) Economies of scale 
E) Master scheduling 
A) Incorporating flexibility 
B) Capacity cushion 
C) Aggressive expansion 
D) Economies of scale 
E) Master scheduling

Question 9

What average output should a company have that has a maximum manufacturing capacity of 3000 units per week if they want to outperform other facilities in the company that maintain utilization rates of 88% ?

Accepted Answer

The answer of What average output should a company have...

Question 10

Low utilization suggests that equipment is being underused.

Accepted Answer

A) True 
 B)False

Question 11

Identify three quantitative factors for making capacity decisions.

Accepted Answer

Fixed costs of adding or remov

Question 12

The campus bookstore averages 150 customers per day.The store is open for 12 hours per day,and each customer takes an average of 4 minutes to check out.How many checkout lanes should the bookstore have if the manager wants a 25% capacity cushion?

Accepted Answer

M = ((150 customers/day * 4 mi

Question 13

Incorporating flexibility into a design is a way to vary capacity.

Accepted Answer

A) True 
 B)False

Question 14

Identify three factors that affect the estimation of capacity,and briefly describe each.

Accepted Answer

Economies of scale¾a positive result whe

Question 15

Yield management attempts to reshape the demand curve.

Accepted Answer

A) True 
 B)False

Question 16

What term describes the situation when the benefits associated with a company increasing in size outweigh the benefits?

Accepted Answer

A) Economies of scale 
B) Diseconomies of scale 
C) Capacity strategy 
D) Effective capacity 
E) Peak capacity 
A) Economies of scale 
B) Diseconomies of scale 
C) Capacity strategy 
D) Effective capacity 
E) Peak capacity

Question 17

A wait-and-see capacity strategy is most appropriate in a fast-growing industry that does not require major facilities.

Accepted Answer

A) True 
 B)False

Question 18

Output measures are generally employed to assess processes that have a high degree of customization.

Accepted Answer

A) True 
 B)False

Question 19

The maximum output rate a process can achieve in the short-term under ideal conditions refers to

Accepted Answer

A) Effective capacity 
B) Peak capacity 
C) Average capacity 
D) Minimum capacity 
E) Economic capacity 
A) Effective capacity 
B) Peak capacity 
C) Average capacity 
D) Minimum capacity 
E) Economic capacity

Question 20

The campus bookstore averages 150 customers per day.The store is open for 12 hours per day.Periodically,the store is not able to use the automated credit card machine and the average checkout time increases to 6 minutes.How many checkout lanes should the bookstore have if the manager wants a 30% capacity cushion?

Accepted Answer

M = ((150 customers/day * 7 mi

What is the utilization of a packaging machine that can package a maximum of 120 units per hour if the unit has averaged 108 units per hour over the last month?

Describe a process to assess future capacity needs.

Utilization is based on average capacity.

Which is a reason that services experience greater demand volatility for multiple reasons?

Which of the following is not a measure of capacity?

Capacity decisions only have to do with expansion and not with shrinking capacity.

How does economy of scale result in an increase in effective capacity?

Which of the following can serve as a substitute for adding capacity?

What average output should a company have that has a maximum manufacturing capacity of 3000 units per week if they want to outperform other facilities in the company that maintain utilization rates of 88% ?

Low utilization suggests that equipment is being underused.

Identify three quantitative factors for making capacity decisions.

The campus bookstore averages 150 customers per day.The store is open for 12 hours per day,and each customer takes an average of 4 minutes to check out.How many checkout lanes should the bookstore have if the manager wants a 25% capacity cushion?

Incorporating flexibility into a design is a way to vary capacity.

Identify three factors that affect the estimation of capacity,and briefly describe each.

Yield management attempts to reshape the demand curve.

What term describes the situation when the benefits associated with a company increasing in size outweigh the benefits?

A wait-and-see capacity strategy is most appropriate in a fast-growing industry that does not require major facilities.

Output measures are generally employed to assess processes that have a high degree of customization.

The maximum output rate a process can achieve in the short-term under ideal conditions refers to

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

What is the utilization of a packaging machine that can package a maximum of 120 units per hour if the unit has averaged 108 units per hour over the last month?

Describe a process to assess future capacity needs.

Utilization is based on average capacity.

Which is a reason that services experience greater demand volatility for multiple reasons?

Which of the following is not a measure of capacity?

Capacity decisions only have to do with expansion and not with shrinking capacity.

How does economy of scale result in an increase in effective capacity?

Which of the following can serve as a substitute for adding capacity?

What average output should a company have that has a maximum manufacturing capacity of 3000 units per week if they want to outperform other facilities in the company that maintain utilization rates of 88% ?

Low utilization suggests that equipment is being underused.

Identify three quantitative factors for making capacity decisions.

The campus bookstore averages 150 customers per day.The store is open for 12 hours per day,and each customer takes an average of 4 minutes to check out.How many checkout lanes should the bookstore have if the manager wants a 25% capacity cushion?

Incorporating flexibility into a design is a way to vary capacity.

Identify three factors that affect the estimation of capacity,and briefly describe each.

Yield management attempts to reshape the demand curve.

What term describes the situation when the benefits associated with a company increasing in size outweigh the benefits?

A wait-and-see capacity strategy is most appropriate in a fast-growing industry that does not require major facilities.

Output measures are generally employed to assess processes that have a high degree of customization.

The maximum output rate a process can achieve in the short-term under ideal conditions refers to

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