Exam 12: Capacity Planning

Correct Answer

verified

Show 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 of time.
D) The 'maximum output' of a process is not a meaningful measure.

Correct Answer

verified

Show Answer

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

Correct Answer

verified

Show Answer

A) 25%
B) 50%
C) 75%
D) There is not enough information to determine the answer

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

A) They are generally short-range in nature.
B) They are not critical as they only determine future availability of output.
C) They involve all organizational units and are often made at the highest corporate level.
D) They are simple and easy to analyze.

Correct Answer

verified

Show Answer

A) A make-to-stock process is used
B) A firm is attempting to capture market share in a growing industry
C) The market for its products or services is shrinking
D) A firm wants its capacity to match average demand

Correct Answer

verified

Show 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.

Correct Answer

verified

Show Answer

A) Using overtime
B) Carrying inventory
C) Subcontracting
D) Pricing

Correct Answer

verified

Show Answer

A) Are medium-range capacity decisions
B) Should consider one of the five crucial questions of how much,how large,when,where,and what type
C) Constrain all other capacity decisions
D) Require planning for one year only

Correct Answer

verified

Show Answer

A) 340,000 tons
B) 360,000 tons
C) >1,000,000 tons
D) It cannot be computed from this information

Correct Answer

verified

Show Answer

A) Varying the number of workers
B) Using advertising and price changes
C) Varying inventory levels
D) All of the above

Correct Answer

verified

Show Answer

A) Should only consider supply management options
B) Only affects marketing and production,but human resources is not involved in decisions
C) Should only consider demand management options
D) Needs to consider multiple tradeoffs such as customer service level,inventory levels,labor force stability,and costs

Correct Answer

verified

Show Answer

A) Aggregate planning is concerned with matching supply and demand of output.
B) Aggregate planning determines not only the output levels planned but also the appropriate resource mix to be used.
C) The aim of aggregate planning is to set overall output levels for the medium-range future.
D) All of the above

Correct Answer

verified

Show Answer

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

Correct Answer

verified

A

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 decline for larger facilities due to size is not always accurate
D) It requires consideration of quality,dependability,and flexibility

Correct Answer

verified

Show Answer

Correct Answer

verified

Short-range: Decisions are constrained by aggregate planning and facility decisions.Allocate the available capacity by assigning it to specific activities. Medium-range: Determine the workforce level and production output level within the facility capacity available. Long-range: Obtain physical capacity that must be planned,developed,and constructed before its intended use.

Correct Answer

verified

Show Answer