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Mixed Quiz
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1

Our estimates regarding short-run variations in demand can influence our desired design capacity.
A)True
B)False
2

Design capacity is just another term used to indicate effective capacity.
A)True
B)False
3

Peak loads and seasonal requirements affect design capacity planning, as well as effective capacity and actual output.
A)True
B)False
4

The efficiency of our operations will increase as the ratio of design capacity to actual output increases (Design capacity divided by actual output).
A)True
B)False
5

Understanding and matching the timing of demand is more important when doing capacity planning for services than it is for capacity planning for manufacturing.
A)True
B)False
6

Demand management is a strategy that can be used to offset capacity limitations.
A)True
B)False
7

Efficiency, in capacity terms, is the ratio of:
A)actual output to design capacity.
B)units produced to labor hours useeffective capacity to actual output.
C)design capacity to effective capacity.
D)design capacity to actual capacity.
8

Seasonal variations are often easier to deal with in capacity planning than random variation, because seasonal factors tend to be:
A)predictablsmaller.
B)larger.
C)controllable
D)inversely related to random variations
9

Given the following information, the utilization is: Effective capacity = 20 units per day Design capacity = 60 units per day Actual output = 15 units per day
A)25%
B)33.3%
C)50%
D)75%
E)none of these
10

Capacity management might include:
A)Price reduction
B)Promotions
C)Inventory level adjustments
D)Increased lead time and back ordering
E)All are capacity management options





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