Question 1

The rate of capacity utilization that minimizes average product cost is known as

Accepted Answer

A)  economies of scale.
B)  diseconomies of scale.
C)  best operating level.
D)  efficiency. C

Question 2

The strategy that varies prices in order to match capacity with demand is known as

Accepted Answer

A)  chase SOP.
B)  level SOP.
C)  yield management.
D)  rough-cut capacity management. C

Question 3

The ratio of actual output to design capacity is

Accepted Answer

A)  efficiency.
B)  throughput.
C)  utilization.
D)  productivity. C

Question 4

Breaking product families into individual products and components of products is called

Accepted Answer

A)  product breakdown.
B)  component planning.
C)  disaggregation.
D)  enterprise planning.

Question 5

Efficiency is defined as the ratio of

Accepted Answer

A)  actual output to actual capacity.
B)  actual output to design capacity.
C)  design capacity to actual capacity.
D)  actual capacity to actual output.

Question 6

The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as available capacity.

Accepted Answer

A) True 
 B)False

Question 7

An inventory management approach based on regularly scheduled counts of different classes of inventory is called a(n)

Accepted Answer

A)  cycle count report.
B)  inventory status file.
C)  Master Production Schedule.
D)  Bill of Materials.

Question 8

In a matching capacity strategy,capacity is increased at relatively the same rate that demand increases.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not an input for the Materials Requirements Plan (MRP)?

Accepted Answer

A)  Bill of Materials
B)  Production Activity Report
C)  Master Production Schedule
D)  Inventory Status File

Question 10

The capacity strategy where capacity is added in anticipation of demand is called ________.

Accepted Answer

The answer of The capacity strategy where capacity is added...

Question 11

The feasibility check of a Materials Requirement Plan (MRP)is the detailed capacity plan.

Accepted Answer

A) True 
 B)False

Question 12

The design capacity of a machine or system refers to the maximum output that can possibly be attained given optimal operating conditions.

Accepted Answer

A) True 
 B)False

Question 13

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate.Hence the actual capacity of the printer is 36 pages per minute (ppm).

Accepted Answer

A) True 
 B)False

Question 14

Given the following information,compute the efficiency of the system. Actual capacity = 80 units per day
Design capacity = 100 units per day
Utilization = 48%

Accepted Answer

A)  20%
B)  40%
C)  60%
D)  80%

Question 15

A method for planning capacity on a daily basis is known as ________.

Accepted Answer

The answer of A method for planning capacity on a...

Question 16

The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand.

Accepted Answer

A) True 
 B)False

Question 17

Systems that help managers make decisions relating to the creation of schedules that balance demand and supply are known as ________.

Accepted Answer

The answer of Systems that help managers make decisions relating...

Question 18

The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as

Accepted Answer

A)  design capacity.
B)  available capacity.
C)  actual capacity.
D)  rough capacity.

Question 19

A planning strategy that produces the same amount every period,and demand is met by varying inventory levels is known as

Accepted Answer

A)  chase SOP.
B)  level SOP.
C)  hybrid SOP.
D)  rough-cut SOP.

Question 20

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate,thus effectively printing 38 pages per minute (ppm).This is the ________ capacity of the printer.

Accepted Answer

The answer of A printer has been rated by the...

Exam 10: Sales and Operations Planning and Enterprise Resource Planning

The rate of capacity utilization that minimizes average product cost is known as

The strategy that varies prices in order to match capacity with demand is known as

The ratio of actual output to design capacity is

Breaking product families into individual products and components of products is called

Efficiency is defined as the ratio of

The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as available capacity.

An inventory management approach based on regularly scheduled counts of different classes of inventory is called a(n)

In a matching capacity strategy,capacity is increased at relatively the same rate that demand increases.

Which of the following is not an input for the Materials Requirements Plan (MRP) ?

The capacity strategy where capacity is added in anticipation of demand is called ________.

The feasibility check of a Materials Requirement Plan (MRP)is the detailed capacity plan.

The design capacity of a machine or system refers to the maximum output that can possibly be attained given optimal operating conditions.

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate.Hence the actual capacity of the printer is 36 pages per minute (ppm).

Given the following information,compute the efficiency of the system. Actual capacity = 80 units per day Design capacity = 100 units per day Utilization = 48%

A method for planning capacity on a daily basis is known as ________.

The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand.

Systems that help managers make decisions relating to the creation of schedules that balance demand and supply are known as ________.

The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as

A planning strategy that produces the same amount every period,and demand is met by varying inventory levels is known as

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate,thus effectively printing 38 pages per minute (ppm).This is the ________ capacity of the printer.