Question 1

In solving a decision tree problem,calculations start at the ends of the "branches" of the tree and work backwards to the base of the tree.

Accepted Answer

A) True 
 B)False  True

Question 2

Capacity flexibility means having the ability to rapidly increase or decrease production levels,or to shift production capacity quickly from one product or service to another.

Accepted Answer

A) True 
 B)False  True

Question 3

The larger the capacity cushion the better.

Accepted Answer

A) True 
 B)False  False

Question 4

When a firm's design capacity is less than the capacity required to meet its demand,it is said to have a negative capacity cushion.

Accepted Answer

A) True 
 B)False

Question 5

The way to build in greater flexibility in your workers is to do which of the following?

Accepted Answer

A)  Pay higher wages to motivate a willingness to do a variety to tasks 
B)  Provide a broader range of training 
C)  Provide a wide variety of technology to augment workers skills 
D)  Institute a "pay for skills" program 
E)  Use part-time employees with specialized skills as needed 
A)  Pay higher wages to motivate a willingness to do a variety to tasks 
B)  Provide a broader range of training 
C)  Provide a wide variety of technology to augment workers skills 
D)  Institute a "pay for skills" program 
E)  Use part-time employees with specialized skills as needed

Question 6

Because services cannot be stored for later use,service managers consider time as one of their supplies or resources.

Accepted Answer

A) True 
 B)False

Question 7

A chance node on a decision tree has four possible outcomes each worth $100,000.The probabilities of the outcomes occurring are assessed as 10%,27%,43% and 20%.What is the expected value of this chance node? ____________________

Accepted Answer

$100,000
Explanation: Since th

Question 8

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 9

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 short-range competitive strategy.

Accepted Answer

A) True 
 B)False

Question 10

What is an important difference between capacity planning in services as contrasted to capacity planning in manufacturing operations?

Accepted Answer

A)  Time 
B)  Location 
C)  Demand volatility 
D)  Utilization impacts service 
E)  All of the above 
A)  Time 
B)  Location 
C)  Demand volatility 
D)  Utilization impacts service 
E)  All of the above

Question 11

Overtime and personnel transfers are solutions to capacity problems in the intermediate term.

Accepted Answer

A) True 
 B)False

Question 12

If the actual output of a piece of equipment during an hour is 500 units and it's best operating level is at a rate of 400 units per hour,which of the following is the capacity utilization rate?

Accepted Answer

A)  0.75 
B)  1.00 
C)  1.25 
D)  1.33 
E)  100 
A)  0.75 
B)  1.00 
C)  1.25 
D)  1.33 
E)  100

Question 13

Low rates of capacity utilization in service organizations are never appropriate.

Accepted Answer

A) True 
 B)False

Question 14

The problem of keeping demand sufficiently high to keep a large factory busy is a sales issue and not a diseconomy of scale.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Best operating level is the volume of output at which average unit cost is minimized.

Accepted Answer

A) True 
 B)False

Question 17

Capacity planning is generally viewed in three time durations: Immediate,Intermediate and Indeterminate.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following models uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step?

Accepted Answer

A)  Probability indexing 
B)  Johnson's sequencing rule 
C)  Decision trees 
D)  Activity System Maps 
E)  Decision mapping 
A)  Probability indexing 
B)  Johnson's sequencing rule 
C)  Decision trees 
D)  Activity System Maps 
E)  Decision mapping

Question 19

Sharing capacity is a common source of external capacity.

Accepted Answer

A) True 
 B)False

Question 20

The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as:

Accepted Answer

A)  Economies of scale 
B)  Economies of size 
C)  Economies of shape 
D)  Economies of scope 
E)  Economies of shipping 
A)  Economies of scale 
B)  Economies of size 
C)  Economies of shape 
D)  Economies of scope 
E)  Economies of shipping

In solving a decision tree problem,calculations start at the ends of the "branches" of the tree and work backwards to the base of the tree.

Capacity flexibility means having the ability to rapidly increase or decrease production levels,or to shift production capacity quickly from one product or service to another.

The larger the capacity cushion the better.

When a firm's design capacity is less than the capacity required to meet its demand,it is said to have a negative capacity cushion.

The way to build in greater flexibility in your workers is to do which of the following?

Because services cannot be stored for later use,service managers consider time as one of their supplies or resources.

A chance node on a decision tree has four possible outcomes each worth $100,000.The probabilities of the outcomes occurring are assessed as 10%,27%,43% and 20%.What is the expected value of this chance node? ____________________

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

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 short-range competitive strategy.

What is an important difference between capacity planning in services as contrasted to capacity planning in manufacturing operations?

Overtime and personnel transfers are solutions to capacity problems in the intermediate term.

If the actual output of a piece of equipment during an hour is 500 units and it's best operating level is at a rate of 400 units per hour,which of the following is the capacity utilization rate?

Low rates of capacity utilization in service organizations are never appropriate.

The problem of keeping demand sufficiently high to keep a large factory busy is a sales issue and not a diseconomy of scale.

Best operating level is the volume of output at which average unit cost is minimized.

Capacity planning is generally viewed in three time durations: Immediate,Intermediate and Indeterminate.

Which of the following models uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step?

Sharing capacity is a common source of external capacity.

The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as:

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

Projects

Manufacturing and Service Processes

Service Processes

Sales and Operations Planning

Material Requirements Planning

Quality Management and Six Sigma

Inventory Management

Lean Supply Chains

Global Sourcing and Procurement

Location, Logistics, and Distribution

Filters

Exam 4: Strategic Capacity Management

In solving a decision tree problem,calculations start at the ends of the "branches" of the tree and work backwards to the base of the tree.

Capacity flexibility means having the ability to rapidly increase or decrease production levels,or to shift production capacity quickly from one product or service to another.

The larger the capacity cushion the better.

When a firm's design capacity is less than the capacity required to meet its demand,it is said to have a negative capacity cushion.

The way to build in greater flexibility in your workers is to do which of the following?

Because services cannot be stored for later use,service managers consider time as one of their supplies or resources.

A chance node on a decision tree has four possible outcomes each worth $100,000.The probabilities of the outcomes occurring are assessed as 10%,27%,43% and 20%.What is the expected value of this chance node? ____________________

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

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 short-range competitive strategy.

What is an important difference between capacity planning in services as contrasted to capacity planning in manufacturing operations?

Overtime and personnel transfers are solutions to capacity problems in the intermediate term.

If the actual output of a piece of equipment during an hour is 500 units and it's best operating level is at a rate of 400 units per hour,which of the following is the capacity utilization rate?

Low rates of capacity utilization in service organizations are never appropriate.

The problem of keeping demand sufficiently high to keep a large factory busy is a sales issue and not a diseconomy of scale.

Best operating level is the volume of output at which average unit cost is minimized.

Capacity planning is generally viewed in three time durations: Immediate,Intermediate and Indeterminate.

Which of the following models uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step?

Sharing capacity is a common source of external capacity.

The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as:

Operations and Supply Chain Management

Strategy and Sustainability

Forecasting

Projects

Manufacturing and Service Processes

Service Processes

Sales and Operations Planning

Material Requirements Planning

Quality Management and Six Sigma

Inventory Management

Lean Supply Chains

Global Sourcing and Procurement

Location, Logistics, and Distribution

Filters