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Chapter 5 Multiple Choice Quiz
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1

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.
2

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
3

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
4

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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