1.
award:
0 out of
10 points
The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of labor-intensive resources.
| False |
2.
award:
10 out of
10 points
Best operating level is the volume of output at which average unit cost is minimized.
| True | 4. award: 10 out of
10 points
Overtime and personnel transfers are solutions to capacity problems in the intermediate term.
| False |
5.
award:
10 out of
10 points
Capacity flexibility means having the ability to rapidly increase or decrease production levels, or to shift production capacity quickly from one product or service to another.
| True | 6. award: 10 out of
10 points
A production facility works best when it focuses on a fairly limited set of production objectives.
| True |
7. award: 0 out of
10 points
Low rates of capacity utilization in service organizations are never appropriate.
→ | False |
10.
award:
0 out of
30 points
If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate?
→ | 1.25 | 11. award: 0 out of
30 points
Compared with a service operation, a manufacturing operation's capacity is which of the following?
→ | Demand can be smoothed by inventory policies |
-------------------------------------------------
Top of Form
13.
award:
30 out of
30 points
The capacity focus concept can be put into practice through a mechanism called which of the following?
| Plants within plants (PWP) | 0 out of
30 points Regarding Capacity Expansion Decision which of the following is/are TRUE?
I. The decision includes timing of capacity increments. II. A reactive expansion strategy is risky. | II only | → | I only