Question 1

Which of the following is a factor that affects service capacity planning?

Accepted Answer

A) the need to be near customers 
B) the inability to store services 
C) the degree of volatility of demand 
D) the customer's willingness to wait 
E) all of the above 
A) the need to be near customers 
B) the inability to store services 
C) the degree of volatility of demand 
D) the customer's willingness to wait 
E) all of the above E

Question 2

When determining the timing and degree of capacity change, one can use the approach of:

Accepted Answer

A) lead time flexibility strategy 
B) expand early strategy 
C) wait-and-see strategy 
D) backordering 
E) delayed differentiation 
A) lead time flexibility strategy 
B) expand early strategy 
C) wait-and-see strategy 
D) backordering 
E) delayed differentiation B

Question 3

Operation X feeds into Operation Y.Operation X has an effective capacity of 55 units per hour.Operation Y has an effective capacity of 50 units per hour.Increasing X's effective capacity to ensure that Y's utilization is maximized would be an example of ________ a constraint.

Accepted Answer

A) overcoming 
B) outsourcing 
C) insourcing 
D) cushioning 
E) none of the above 
A) overcoming 
B) outsourcing 
C) insourcing 
D) cushioning 
E) none of the above E

Question 4

The ratio of actual output to effective capacity is:

Accepted Answer

A) design capacity 
B) effective capacity 
C) actual capacity 
D) efficiency 
E) utilization 
A) design capacity 
B) effective capacity 
C) actual capacity 
D) efficiency 
E) utilization

Question 5

Capacity decisions often involve a long-term commitment of resources which, when implemented, are difficult or impossible to modify without major added costs.

Accepted Answer

A) True 
 B)False

Question 6

If her available land has design and effective capacities of 3,000 and 2,000 rosebushes per year, respectively, and she expects to be 80% efficient in her use of this land, how many rosebushes does Rose plan to grow each year on this land?

Accepted Answer

A) 1,600 
B) 2,400 
C) 3,000 
D) 2,000 
E) 1,000 
A) 1,600 
B) 2,400 
C) 3,000 
D) 2,000 
E) 1,000

Question 7

Design capacity refers to the maximum output that can possibly be attained.

Accepted Answer

A) True 
 B)False

Question 8

If the output rate is increased but the average unit costs also increase we are experiencing:

Accepted Answer

A) market share erosion. 
B) economies of scale. 
C) diseconomies of scale. 
D) value added accounting. 
E) step-function scale up. 
A) market share erosion. 
B) economies of scale. 
C) diseconomies of scale. 
D) value added accounting. 
E) step-function scale up.

Question 9

Utilization is defined as the ratio of:

Accepted Answer

A) actual output to effective capacity 
B) actual output to design capacity 
C) design capacity to effective capacity 
D) effective capacity to actual output 
E) design capacity to actual output 
A) actual output to effective capacity 
B) actual output to design capacity 
C) design capacity to effective capacity 
D) effective capacity to actual output 
E) design capacity to actual output

Question 10

Students at a major university must go through several registration steps.Officials have observed that it is typically the case that the waiting line at the fee-payment station is the longest.This would seem to suggest that the fee-payment station is the ___________ in the student registration process.

Accepted Answer

A) capacity cushion 
B) restraint 
C) bottleneck 
D) economy of scale 
E) diseconomy of scale 
A) capacity cushion 
B) restraint 
C) bottleneck 
D) economy of scale 
E) diseconomy of scale

Question 11

What profit (loss) would there be for a quantity of 27,000?

Accepted Answer

The answer of What profit (loss) would there be for...

Question 12

An investment proposal will have annual fixed costs of $60,000, variable costs of $35 per unit of output, and revenue of $55 per unit of output.
(A) Determine the break-even quantity.
(B) What volume of output will be necessary for an annual profit of $60,000?

Accepted Answer

FC = $60,000 per yea

Question 13

What is the anticipated efficiency?

Accepted Answer

The answer of What is the anticipated efficiency?...

Question 14

Cost and competitive priorities reduce effective capacities.

Accepted Answer

A) True 
 B)False

Question 15

Increasing capacity just before a bottleneck operation will improve the output of the process.

Accepted Answer

A) True 
 B)False

Question 16

What quantity would be required for a profit of $2,000?

Accepted Answer

The answer of What quantity would be required for a...

Question 17

The maximum possible output given a product mix, scheduling difficulties, quality factors, and so on, is:

Accepted Answer

A) utilization 
B) design capacity 
C) efficiency 
D) effective capacity 
E) available capacity 
A) utilization 
B) design capacity 
C) efficiency 
D) effective capacity 
E) available capacity

Question 18

An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of $70 per unit.The break-even point volume is:

Accepted Answer

A) 100 
B) 2,000 
C) 500 
D) 1,000 
E) none of these 
A) 100 
B) 2,000 
C) 500 
D) 1,000 
E) none of these

Question 19

The utilization of a machine is 50%.The machine has a design capacity of 70 units per hour and an effective capacity of 60 units per hour.Find the efficiency of the machine.

Accepted Answer

The answer of The utilization of a machine is 50%.The...

Question 20

Outsourcing some production is a means of supporting a constraint.

Accepted Answer

A) True 
 B)False

Exam 5: Strategic Capacity Planning for Products and Services

Which of the following is a factor that affects service capacity planning?

When determining the timing and degree of capacity change, one can use the approach of:

Operation X feeds into Operation Y.Operation X has an effective capacity of 55 units per hour.Operation Y has an effective capacity of 50 units per hour.Increasing X's effective capacity to ensure that Y's utilization is maximized would be an example of ________ a constraint.

The ratio of actual output to effective capacity is:

Capacity decisions often involve a long-term commitment of resources which, when implemented, are difficult or impossible to modify without major added costs.

If her available land has design and effective capacities of 3,000 and 2,000 rosebushes per year, respectively, and she expects to be 80% efficient in her use of this land, how many rosebushes does Rose plan to grow each year on this land?

Design capacity refers to the maximum output that can possibly be attained.

If the output rate is increased but the average unit costs also increase we are experiencing:

Utilization is defined as the ratio of:

What profit (loss) would there be for a quantity of 27,000?

An investment proposal will have annual fixed costs of $60,000, variable costs of $35 per unit of output, and revenue of $55 per unit of output. (A) Determine the break-even quantity. (B) What volume of output will be necessary for an annual profit of $60,000?

What is the anticipated efficiency?

Cost and competitive priorities reduce effective capacities.

Increasing capacity just before a bottleneck operation will improve the output of the process.

What quantity would be required for a profit of $2,000?

The maximum possible output given a product mix, scheduling difficulties, quality factors, and so on, is:

An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of $70 per unit.The break-even point volume is:

The utilization of a machine is 50%.The machine has a design capacity of 70 units per hour and an effective capacity of 60 units per hour.Find the efficiency of the machine.

Outsourcing some production is a means of supporting a constraint.

Introduction to Operations Management

Competitiveness, Strategy, and Productivity

Forecasting

Product and Service Design

Process Selection and Facility Layout

Work Design and Measurement

Location Planning and Analysis

Management of Quality

Quality Control

Aggregate Planning and Master Scheduling

MRP and ERP

Inventory Management

Jit and Lean Operations

Supply Chain Management

Scheduling

Project Management

Management of Waiting Lines

Linear Programming

Extension 4: Reliability

Extension 5: Decision Theory

Extension 7: Learning Curves

Extension 8: The Transportation Model

Extension 10: Acceptance Sampling

Extension 14: Maintenance

Filters