Question 1

Describe three ways capacity planning for services are different than capacity planning for manufacturing.

Accepted Answer

Time related¾services cannot be inventor

Question 2

A company has two similar plants,one is small and the other is large.In terms of utilization,which plant is better utilized? The small plant can produce a maximum of 9,000 units a week,and the large plant can produce a maximum of 22,000 units a week.Over the last 16 weeks,the small plant averaged 8,100 units and the large plant averaged 20,200 units per week.

Accepted Answer

Small plant = 8,100/9,000 = 90

Question 3

Sketch and briefly describe an experience curve.

Accepted Answer

The curve should look something like Fig

Question 4

For machines,the peak capacity is also known as the rated capacity.

Accepted Answer

A) True 
 B)False

Question 5

In a typical experience curve,the time per unit for the first 100 to 200 units

Accepted Answer

A) Increases slowly 
B) Increases rapidly 
C) Decreases slowly 
D) Decreases rapidly 
E) Remains constant 
A) Increases slowly 
B) Increases rapidly 
C) Decreases slowly 
D) Decreases rapidly 
E) Remains constant

Question 6

Which is not an approach for maximizing the utility of existing capacity?

Accepted Answer

A) Incorporating flexibility 
B) Accounting for life-cycle stage 
C) Dealing with capacity increments 
D) Smoothing out capacity 
E) Focusing on component's individual capacity 
A) Incorporating flexibility 
B) Accounting for life-cycle stage 
C) Dealing with capacity increments 
D) Smoothing out capacity 
E) Focusing on component's individual capacity

Question 7

Capacity strategies refer to all of the following aspects of capacity management except

Accepted Answer

A) Timing of expansion 
B) Timing of contraction 
C) Sizing of facilities 
D) Linkage with business plans 
E) Economies of scale 
A) Timing of expansion 
B) Timing of contraction 
C) Sizing of facilities 
D) Linkage with business plans 
E) Economies of scale

Question 8

Why should services be near to the customer?

Accepted Answer

A) To keep out competition 
B) Because the customer is normally involved in the service 
C) To serve customers with limited transportation 
D) To make services convenient 
E) None of these options are reasons to be near customers 
A) To keep out competition 
B) Because the customer is normally involved in the service 
C) To serve customers with limited transportation 
D) To make services convenient 
E) None of these options are reasons to be near customers

Question 9

A company runs an assembly line two shifts a day; however,the first shift runs the line 7.5 hours and the second shift runs the line 9 hours.The machine has a maximum output of 120 units per hour.Over the last 28 shifts,the first shift averaged 825 units a shift and the second shift averaged 972 units.Which shift better utilizes the machine?

Accepted Answer

First shift utilization = 825 units per

Question 10

Capacity is only measured in terms of output.

Accepted Answer

A) True 
 B)False

Question 11

Meals served would not be an appropriate measure of capacity for a restaurant.

Accepted Answer

A) True 
 B)False

Question 12

Uncertain demand requires cushion capacity.

Accepted Answer

A) True 
 B)False

Question 13

Utilization is the ratio of what variable to effective/peak capacity?

Accepted Answer

A) Average output 
B) Minimum output 
C) Maximum output 
D) Desired output 
E) Weekly output 
A) Average output 
B) Minimum output 
C) Maximum output 
D) Desired output 
E) Weekly output

Question 14

A small hamburger stand has seating for 12 people.They are considering adding seating for 6 or 12 more people.Profit is currently 28,800 per year.The owner thinks the profit would be 46,080 if 6 additional seats and 63,360 if 12 more seats are added.What is the present value of each option,assuming a 15% discount rate for the next year?

Accepted Answer

28,800/1.15 = $24,04

Question 15

Identify five issues related to maximizing the utility of existing capacity.

Accepted Answer

Flexibility Accounting for lif

Describe three ways capacity planning for services are different than capacity planning for manufacturing.

Sketch and briefly describe an experience curve.

For machines,the peak capacity is also known as the rated capacity.

In a typical experience curve,the time per unit for the first 100 to 200 units

Which is not an approach for maximizing the utility of existing capacity?

Capacity strategies refer to all of the following aspects of capacity management except

Why should services be near to the customer?

Capacity is only measured in terms of output.

Meals served would not be an appropriate measure of capacity for a restaurant.

Uncertain demand requires cushion capacity.

Utilization is the ratio of what variable to effective/peak capacity?

Identify five issues related to maximizing the utility of existing capacity.

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

Describe three ways capacity planning for services are different than capacity planning for manufacturing.

Sketch and briefly describe an experience curve.

For machines,the peak capacity is also known as the rated capacity.

In a typical experience curve,the time per unit for the first 100 to 200 units

Which is not an approach for maximizing the utility of existing capacity?

Capacity strategies refer to all of the following aspects of capacity management except

Why should services be near to the customer?

Capacity is only measured in terms of output.

Meals served would not be an appropriate measure of capacity for a restaurant.

Uncertain demand requires cushion capacity.

Utilization is the ratio of what variable to effective/peak capacity?

Identify five issues related to maximizing the utility of existing capacity.

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