Deck 7: Managing Capacity and Demand

Question 1

The maximum possible output of an operation is known as the ______________?

A) Effective capacity
B) Design capacity
C) Theoretical capacity
D) Expected capacity

Answer 1

B

Question 2

The actual output from an operation is known as the __________________?

A) Effective capacity
B) Design capacity
C) Achieved capacity
D) Expected capacity

Answer 2

C

Question 3

How is the efficiency of an operation measured?

A) Achieved capacity/Design capacity
B) Effective capacity/ Design capacity
C) Achieved capacity/Effective capacity
D) Effective capacity/Achieved capacity

Answer 3

C

Question 4

If an operation has a design capacity of 168 hours, a planned downtime of 42 hours and an unplanned downtime of 6 hours, what is its efficiency?

A) 71.4%
B) 95.2%
C) 85.1%
D) 75.3%

Question 5

A measure which takes into account availability of equipment, performance output and the quality of output is called _________________?

A) Overall Machine Efficiency
B) Overall Machine Utilization
C) Overall Equipment Effectiveness
D) Overall Design Effectiveness

Question 6

A qualitative method of forecasting demand is ________________?

A) Moving average
B) Exponential smoothing
C) Delphi method
D) Regression analysis

Question 7

A method of looking back at previous data to predict the future demand is _______________________?

A) Moving average
B) Scenario planning
C) Delphi method
D) Regression analysis

Question 8

Which of the following is an advantage of a level capacity strategy?

A) Output levels can be varied in line with demand
B) Output levels are predictable
C) Customer order levels are predictable
D) There is always enough capacity to meet demand

Question 9

Arranging flexible working shifts for employees in a retail operation is an example of ____________________?

A) A chase demand strategy
B) A demand management strategy
C) A level capacity strategy
D) A capacity lagging strategy

Question 10

Advertising certain products at reduced prices is an example of which type of capacity strategy?

A) Level capacity
B) Chase demand
C) Demand management
D) Capacity leading