Question 1

Facilities decisions:

Accepted Answer

A) Are medium-range capacity decisions 
B) Should consider the five crucial questions independently 
C) Constrain all other capacity decisions 
D) Require planning for one year only 
A) Are medium-range capacity decisions 
B) Should consider the five crucial questions independently 
C) Constrain all other capacity decisions 
D) Require planning for one year only C

Question 2

The most popular type of facility used by Fortune 500 companies is:

Accepted Answer

A) Product-focused 
B) Process-focused 
C) Market-focused 
D) Price-focused 
E) General-purpose 
A) Product-focused 
B) Process-focused 
C) Market-focused 
D) Price-focused 
E) General-purpose A

Question 3

Demand management variables include:

Accepted Answer

A) Pricing,inventory,and advertising 
B) Reservations,pricing,and advertising 
C) Subcontracting,advertising,and pricing 
D) Inventory,reservations,and pricing 
A) Pricing,inventory,and advertising 
B) Reservations,pricing,and advertising 
C) Subcontracting,advertising,and pricing 
D) Inventory,reservations,and pricing B

Question 4

Which of the following departments is NOT affected directly by the facilities decision?

Accepted Answer

A) Operations 
B) Marketing 
C) Finance 
D) None of the above 
A) Operations 
B) Marketing 
C) Finance 
D) None of the above

Question 5

Aggregate Planning,Facilities Planning,and Scheduling form a hierarchy of decisions extending from long-range to medium-range to short-range,respectively,concerning the capacity of operations.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements regarding capacity is incorrect?

Accepted Answer

A) Capacity can be measured in several units such as hours of output,number of units produced,number of customers served,etc. 
B) Effective capacity is generally less than the theoretical capacity. 
C) Capacity is the maximum output that could be produced over a period. 
D) It does not make sense to define the term 'maximum capacity' of a process. 
E) None of the above 
A) Capacity can be measured in several units such as hours of output,number of units produced,number of customers served,etc. 
B) Effective capacity is generally less than the theoretical capacity. 
C) Capacity is the maximum output that could be produced over a period. 
D) It does not make sense to define the term 'maximum capacity' of a process. 
E) None of the above

Question 7

Aggregate Planning assumes that the facility decisions are made and cannot be changed for a given product.

Accepted Answer

A) True 
 B)False

Question 8

Why can justifying capacity expansion with economies of scale be dangerous?

Accepted Answer

A) It is far too specific to use as a basis for capacity decisions 
B) Because volume,capacity,and process considerations are looked at individually 
C) Because the common notion that unit costs will decline for larger facilities due to size is not necessarily accurate 
D) It requires consideration of quality,dependability,and flexibility 
A) It is far too specific to use as a basis for capacity decisions 
B) Because volume,capacity,and process considerations are looked at individually 
C) Because the common notion that unit costs will decline for larger facilities due to size is not necessarily accurate 
D) It requires consideration of quality,dependability,and flexibility

Question 9

One way of leveling the demand during the off-peak season is by employing a differential pricing strategy.

Accepted Answer

A) True 
 B)False

Question 10

Aggregate planning costs do NOT include:

Accepted Answer

A) Hiring and layoff costs 
B) Overtime and undertime costs 
C) Part-time labor costs 
D) Subcontracting costs 
E) Inventory ordering costs 
A) Hiring and layoff costs 
B) Overtime and undertime costs 
C) Part-time labor costs 
D) Subcontracting costs 
E) Inventory ordering costs

Question 11

It is possible in the short term for a firm to operate above 100% utilization.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following accurately describes a chase strategy?

Accepted Answer

A) The firm produces the same amount each day over the planning period and deals with the variations in demand with inventory or overtime. 
B) The firm produces at the same level for several months,and then adjusts production to another level and produces at that level for several more months. 
C) The firm produces exactly what is needed each month. 
D) All of the above could describe the strategy depending on the organization. 
E) None of the above accurately describes it. 
A) The firm produces the same amount each day over the planning period and deals with the variations in demand with inventory or overtime. 
B) The firm produces at the same level for several months,and then adjusts production to another level and produces at that level for several more months. 
C) The firm produces exactly what is needed each month. 
D) All of the above could describe the strategy depending on the organization. 
E) None of the above accurately describes it.

Question 13

In aggregate planning:

Accepted Answer

A) The concern is over the long-time range. 
B) Output levels are set in the face of certain demand. 
C) "Aggregate" implies that planning is done for a single overall measure of output or at most a few products. 
D) Decisions should not consider overtime,hiring,firing,subcontracting,and inventory levels together. 
A) The concern is over the long-time range. 
B) Output levels are set in the face of certain demand. 
C) "Aggregate" implies that planning is done for a single overall measure of output or at most a few products. 
D) Decisions should not consider overtime,hiring,firing,subcontracting,and inventory levels together.

Question 14

Aggregate planning differs from scheduling in that:

Accepted Answer

A) The former refers to the long-range and the latter refers to the short-range. 
B) The former is concerned with allocating available resources and the latter with the acquisition of resources. 
C) The former refers to the long-range and the latter refers to the medium-range. 
D) The former is concerned with the acquisition of resources and the latter with allocating available resources. 
A) The former refers to the long-range and the latter refers to the short-range. 
B) The former is concerned with allocating available resources and the latter with the acquisition of resources. 
C) The former refers to the long-range and the latter refers to the medium-range. 
D) The former is concerned with the acquisition of resources and the latter with allocating available resources.

Question 15

A wait-and-see facility approach uses a positive capacity cushion.

Accepted Answer

A) True 
 B)False

Question 16

The aggregate planning problem:

Accepted Answer

A) Is narrow in nature 
B) Only affects marketing and production 
C) Is solved using either (but not both)demand management variables or supply management variables 
D) Needs to consider multiple tradeoffs such as customer service level,inventory levels,labor force stability,and costs 
A) Is narrow in nature 
B) Only affects marketing and production 
C) Is solved using either (but not both)demand management variables or supply management variables 
D) Needs to consider multiple tradeoffs such as customer service level,inventory levels,labor force stability,and costs

Question 17

Supply management variables include:

Accepted Answer

A) Inventory,subcontracting,and cooperative arrangements 
B) Complementary offerings,inventory,and overtime 
C) Subcontracting,hiring,and reservations 
D) b and c 
E) a and c 
A) Inventory,subcontracting,and cooperative arrangements 
B) Complementary offerings,inventory,and overtime 
C) Subcontracting,hiring,and reservations 
D) b and c 
E) a and c

Question 18

Capacity Utilization = Actual Output/Capacity x 100%.

Accepted Answer

A) True 
 B)False

Question 19

One option for altering the pattern of demand through aggregate planning is:

Accepted Answer

A) Hiring employees 
B) Using overtime 
C) Carrying inventory 
D) Subcontracting 
E) Pricing 
A) Hiring employees 
B) Using overtime 
C) Carrying inventory 
D) Subcontracting 
E) Pricing

Question 20

Which of the following is NOT true about aggregate planning in service organizations?

Accepted Answer

A) A time horizon of 12 months,on average,is used 
B) The possibility of changing both supply and demand variables 
C) A variety of management objectives 
D) Requires inventory and capacity tradeoff 
E) Facilities are fixed 
A) A time horizon of 12 months,on average,is used 
B) The possibility of changing both supply and demand variables 
C) A variety of management objectives 
D) Requires inventory and capacity tradeoff 
E) Facilities are fixed

Facilities decisions:

The most popular type of facility used by Fortune 500 companies is:

Demand management variables include:

Which of the following departments is NOT affected directly by the facilities decision?

Aggregate Planning,Facilities Planning,and Scheduling form a hierarchy of decisions extending from long-range to medium-range to short-range,respectively,concerning the capacity of operations.

Which of the following statements regarding capacity is incorrect?

Aggregate Planning assumes that the facility decisions are made and cannot be changed for a given product.

Why can justifying capacity expansion with economies of scale be dangerous?

One way of leveling the demand during the off-peak season is by employing a differential pricing strategy.

Aggregate planning costs do NOT include:

It is possible in the short term for a firm to operate above 100% utilization.

Which of the following accurately describes a chase strategy?

In aggregate planning:

Aggregate planning differs from scheduling in that:

A wait-and-see facility approach uses a positive capacity cushion.

The aggregate planning problem:

Supply management variables include:

Capacity Utilization = Actual Output/Capacity x 100%.

One option for altering the pattern of demand through aggregate planning is:

Which of the following is NOT true about aggregate planning in service organizations?

The Operations Function

Operations and Supply Chain Strategy

Product Design

Process Selection

Service Process Design

Process-Flow Analysis

Lean Thinking and Lean Systems

Managing Quality

Quality Control and Improvement

Supply Chain Management

Forecasting

Scheduling Operations

Project Planning and Scheduling

Independent Demand Inventory

Materials Requirements Planning and ERP

Filters

Exam 12: Capacity Planning

Facilities decisions:

The most popular type of facility used by Fortune 500 companies is:

Demand management variables include:

Which of the following departments is NOT affected directly by the facilities decision?

Aggregate Planning,Facilities Planning,and Scheduling form a hierarchy of decisions extending from long-range to medium-range to short-range,respectively,concerning the capacity of operations.

Which of the following statements regarding capacity is incorrect?

Aggregate Planning assumes that the facility decisions are made and cannot be changed for a given product.

Why can justifying capacity expansion with economies of scale be dangerous?

One way of leveling the demand during the off-peak season is by employing a differential pricing strategy.

Aggregate planning costs do NOT include:

It is possible in the short term for a firm to operate above 100% utilization.

Which of the following accurately describes a chase strategy?

In aggregate planning:

Aggregate planning differs from scheduling in that:

A wait-and-see facility approach uses a positive capacity cushion.

The aggregate planning problem:

Supply management variables include:

Capacity Utilization = Actual Output/Capacity x 100%.

One option for altering the pattern of demand through aggregate planning is:

Which of the following is NOT true about aggregate planning in service organizations?

The Operations Function

Operations and Supply Chain Strategy

Product Design

Process Selection

Service Process Design

Process-Flow Analysis

Lean Thinking and Lean Systems

Managing Quality

Quality Control and Improvement

Supply Chain Management

Forecasting

Scheduling Operations

Project Planning and Scheduling

Independent Demand Inventory

Materials Requirements Planning and ERP

Filters