Question 1

When a company pursues a lagging strategy,______.

Accepted Answer

A) it increases its capacity only when there is a sizeable increase in demand 
B) it increases its capacity only when there is a small increase in demand 
C) it increases its capacity only when there is no change in demand 
D) it increases its capacity only when there is sufficient capital investment available 
A) it increases its capacity only when there is a sizeable increase in demand 
B) it increases its capacity only when there is a small increase in demand 
C) it increases its capacity only when there is no change in demand 
D) it increases its capacity only when there is sufficient capital investment available A

Question 2

The popularity behind Target's partnership with Italian fashion house Missoni was due to ______.

Accepted Answer

A) easy availability of expensive versions of fashion by high-end designers for high-end stores 
B) popularity of cheaper versions of fashions created by high-end designers for lower-end stores 
C) availability of high-end fashion items at high prices 
D) the publicity from having items listed on eBay 
A) easy availability of expensive versions of fashion by high-end designers for high-end stores 
B) popularity of cheaper versions of fashions created by high-end designers for lower-end stores 
C) availability of high-end fashion items at high prices 
D) the publicity from having items listed on eBay B

Question 3

Consulting firms,banks,IT outsourcing firms,and restaurants ______.

Accepted Answer

A) typically experience economies of scale 
B) are service organizations 
C) suffer from excess capacity 
D) experience diseconomies of scope 
A) typically experience economies of scale 
B) are service organizations 
C) suffer from excess capacity 
D) experience diseconomies of scope B

Question 4

Which of the following is NOT a result of inadequate capacity in offering services?

Accepted Answer

A) inventory stock out 
B) customer dissatisfaction 
C) delays in the delivery of a service 
D) lost customers 
A) inventory stock out 
B) customer dissatisfaction 
C) delays in the delivery of a service 
D) lost customers

Question 5

What is the goal of strategic capacity planning?

Accepted Answer

A) to prevent a shortage of finished products 
B) to minimize the gap between the capacity available in the system and the capacity that is required to meet demand 
C) to minimize the inventory of finished products 
D) to maximize product availability 
A) to prevent a shortage of finished products 
B) to minimize the gap between the capacity available in the system and the capacity that is required to meet demand 
C) to minimize the inventory of finished products 
D) to maximize product availability

Question 6

Which of the following is NOT a step in the capacity planning process?

Accepted Answer

A) Identify new markets. 
B) Develop capacity alternatives. 
C) Evaluate alternatives and select and implement the best long-term alternative. 
D) Monitor capacity performance results. 
A) Identify new markets. 
B) Develop capacity alternatives. 
C) Evaluate alternatives and select and implement the best long-term alternative. 
D) Monitor capacity performance results.

Question 7

In effective global capacity management,the time horizon for monitoring and response is ______.

Accepted Answer

A) short to intermediate term (0-1 year) 
B) intermediate to long term (1-4 or more years) 
C) short to intermediate term (3-4 weeks) 
D) intermediate to long term (15-20 or more years) 
A) short to intermediate term (0-1 year) 
B) intermediate to long term (1-4 or more years) 
C) short to intermediate term (3-4 weeks) 
D) intermediate to long term (15-20 or more years)

Question 8

Capacity-reservation contracts ______.

Accepted Answer

A) provide the manufacturer with the option of reserving additional production capacity with the supplier to be exercised in the future as needed 
B) have the potential to reduce the manufacturer's procurement costs 
C) are an increasingly popular method for allocating risks across suppliers and buyers in high-tech supply chains 
D) have the potential to reduce the use of the supplier's capacity 
A) provide the manufacturer with the option of reserving additional production capacity with the supplier to be exercised in the future as needed 
B) have the potential to reduce the manufacturer's procurement costs 
C) are an increasingly popular method for allocating risks across suppliers and buyers in high-tech supply chains 
D) have the potential to reduce the use of the supplier's capacity

Question 9

Which of the following is usually NOT true about managing operations and supply chains in a sustainable and ethical manner?

Accepted Answer

A) It helps a firm's bottom line. 
B) It will improve the environment. 
C) It will result in added costs. 
D) It will improve the lives of people around the globe. 
A) It helps a firm's bottom line. 
B) It will improve the environment. 
C) It will result in added costs. 
D) It will improve the lives of people around the globe.

Question 10

Capacity planning is LEAST likely to focus on ______.

Accepted Answer

A) the company's acquisition of resources 
B) the organization of resources 
C) the deployment of resources 
D) the manufacturing of these resources 
A) the company's acquisition of resources 
B) the organization of resources 
C) the deployment of resources 
D) the manufacturing of these resources

Question 11

Which of the following is FALSE with regard to the make or buy option?

Accepted Answer

A) The advantage of outsourcing activities that do not directly contribute to the company's bottom line reduces production costs. 
B) The advantage of outsourcing activities that do not directly contribute to the company's bottom line reduces capital investment. 
C) The advantage of outsourcing is the opportunity for the primary firm to avoid responsibility for product failure due to outsourced production. 
D) The disadvantage of outsourcing is possible loss of control over the outsourced production of the work that has been outsourced. 
A) The advantage of outsourcing activities that do not directly contribute to the company's bottom line reduces production costs. 
B) The advantage of outsourcing activities that do not directly contribute to the company's bottom line reduces capital investment. 
C) The advantage of outsourcing is the opportunity for the primary firm to avoid responsibility for product failure due to outsourced production. 
D) The disadvantage of outsourcing is possible loss of control over the outsourced production of the work that has been outsourced.

Question 12

The Car Service Center has the design capacity to perform an average of 60 repairs per day.The effective capacity of this repair shop is an average of 40 repairs day,while the actual repairs number an average of 36 per day.Given this information,the capacity utilization percentage is ______.

Accepted Answer

A) (36/40)* 100% 
B) (36/60)* 100% 
C) (40/60)* 100% 
D) ((36*40)/60)* 100% 
A) (36/40)* 100% 
B) (36/60)* 100% 
C) (40/60)* 100% 
D) ((36*40)/60)* 100%

Question 13

The primary impact of poorly developed global capacity plans ______.

Accepted Answer

A) is the failure to deliver the product or service on time 
B) is the failure to price the product accurately 
C) is the failure to ensure a full complement of product features 
D) is the failure to meet international design requirements for the product 
A) is the failure to deliver the product or service on time 
B) is the failure to price the product accurately 
C) is the failure to ensure a full complement of product features 
D) is the failure to meet international design requirements for the product

Question 14

Which of the following is NOT one of the steps taken by Pratt & Whitney to address concerns about on-time delivery?

Accepted Answer

A) Pratt offered various financial incentives for completing on time,as well as financial and legal penalties for not completing on time. 
B) Pratt took a long-term view to ensure that capacity and suppliers were coordinated for future deliveries. 
C) Pratt started monitoring suppliers 100 weeks ahead of when parts were due to arrive at the manufacturing centers. 
D) If a supplier was not meeting its quality or production goals,Pratt sent engineers to help fix the problem at the source. 
A) Pratt offered various financial incentives for completing on time,as well as financial and legal penalties for not completing on time. 
B) Pratt took a long-term view to ensure that capacity and suppliers were coordinated for future deliveries. 
C) Pratt started monitoring suppliers 100 weeks ahead of when parts were due to arrive at the manufacturing centers. 
D) If a supplier was not meeting its quality or production goals,Pratt sent engineers to help fix the problem at the source.

Question 15

Design capacity is ______.

Accepted Answer

A) the maximum rate of output achieved by an operation,a process,or a manufacturing or service facility that is producing under ideal conditions 
B) the capacity that can be achieved given the actual changes in product mix,machines and equipment that require periodic maintenance,scheduling changes,and workers who take time off for lunch,absences,and other needs 
C) less than effective capacity 
D) dependent on the company's market share 
A) the maximum rate of output achieved by an operation,a process,or a manufacturing or service facility that is producing under ideal conditions 
B) the capacity that can be achieved given the actual changes in product mix,machines and equipment that require periodic maintenance,scheduling changes,and workers who take time off for lunch,absences,and other needs 
C) less than effective capacity 
D) dependent on the company's market share

Question 16

Which of the following is NOT a characteristic of capacity planning in service firms?

Accepted Answer

A) Services are generally consumed at the time they are produced. 
B) It is not possible to have an inventory,or buffer stock,of services. 
C) The capacity of service firms at all times has to be less than what is needed to meet demand. 
D) Periodic capacity underuse is inevitable for service firms. 
A) Services are generally consumed at the time they are produced. 
B) It is not possible to have an inventory,or buffer stock,of services. 
C) The capacity of service firms at all times has to be less than what is needed to meet demand. 
D) Periodic capacity underuse is inevitable for service firms.

Question 17

The purpose of capacity control is ______.

Accepted Answer

A) to achieve as balanced a workload as possible among the various work centers 
B) to ensure there is no shortage or surplus of inventory 
C) to ensure there is no stock out or excess of finished goods 
D) to ensure excess capacity is productively used and not wasted 
A) to achieve as balanced a workload as possible among the various work centers 
B) to ensure there is no shortage or surplus of inventory 
C) to ensure there is no stock out or excess of finished goods 
D) to ensure excess capacity is productively used and not wasted

Question 18

Which of the following is NOT a requirement of strategic capacity planning?

Accepted Answer

A) forecasting demand over several years 
B) looking at demand and growth trends 
C) looking at cyclical demand patterns 
D) establishing a policy on discounts and rebates 
A) forecasting demand over several years 
B) looking at demand and growth trends 
C) looking at cyclical demand patterns 
D) establishing a policy on discounts and rebates

Question 19

In the context of operations,the maximum amount of output an operation is capable of producing in a given time period is given by the ______.

Accepted Answer

A) firm's managerial efficiency 
B) responsiveness of the firm's suppliers 
C) firm's capacity 
D) manufacturing lead time 
A) firm's managerial efficiency 
B) responsiveness of the firm's suppliers 
C) firm's capacity 
D) manufacturing lead time

Question 20

Which of the following is NOT a step in the capacity planning process?

Accepted Answer

A) Analyze available capacity and identify capacity gaps. 
B) Develop capacity alternatives. 
C) Evaluate alternatives and select and implement the best short-term alternative. 
D) Monitor capacity performance results. 
A) Analyze available capacity and identify capacity gaps. 
B) Develop capacity alternatives. 
C) Evaluate alternatives and select and implement the best short-term alternative. 
D) Monitor capacity performance results.

Exam 9: Capacity Planning

When a company pursues a lagging strategy,______.

The popularity behind Target's partnership with Italian fashion house Missoni was due to ______.

Consulting firms,banks,IT outsourcing firms,and restaurants ______.

Which of the following is NOT a result of inadequate capacity in offering services?

What is the goal of strategic capacity planning?

Which of the following is NOT a step in the capacity planning process?

In effective global capacity management,the time horizon for monitoring and response is ______.

Capacity-reservation contracts ______.

Which of the following is usually NOT true about managing operations and supply chains in a sustainable and ethical manner?

Capacity planning is LEAST likely to focus on ______.

Which of the following is FALSE with regard to the make or buy option?

The Car Service Center has the design capacity to perform an average of 60 repairs per day.The effective capacity of this repair shop is an average of 40 repairs day,while the actual repairs number an average of 36 per day.Given this information,the capacity utilization percentage is ______.

The primary impact of poorly developed global capacity plans ______.

Which of the following is NOT one of the steps taken by Pratt & Whitney to address concerns about on-time delivery?

Design capacity is ______.

Which of the following is NOT a characteristic of capacity planning in service firms?

The purpose of capacity control is ______.

Which of the following is NOT a requirement of strategic capacity planning?

In the context of operations,the maximum amount of output an operation is capable of producing in a given time period is given by the ______.

Which of the following is NOT a step in the capacity planning process?

Introduction to Managing Global Operations and Supply Chains

Operations and Supply Chain Strategies

Project Management

Supplement: Project Management

Product and Service Innovations

Supplement: Reliability

Managing for Quality

Quality Improvement and Control Tools

Supply Chain Design and Location Planning

Process Design and Layout Planning

Supplement: Tools for Analyzing, Designing, and Selecting Processes and Layouts

Supplier Management

Logistics Management

Demand Management and Customer Service

Demand Forecasting Methods

Lean Operations and Supply Chains

Inventory Management

Inventory Control Models

Sales and Operations Planning

Master Scheduling and Material Requirements Planning

Supplement: Capacity Requirements Planning, MRP II, ERP, and DRP

Detailed Scheduling

Linear Programming

The Transportation Models

Waiting Line Models

Simulation

Learning Curves

Decision-Making Tools

Filters