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| 1 |  |  Which of the following statements is not true about capacity management in operations? |
|  | A) | When looking at capacity, operations managers need to look at both resource input and product outputs. |
|  | B) | An operations management view also emphasizes the time dimension of capacity. |
|  | C) | Capacity planning itself has different meaning to individuals at different levels within the operations management hierarchy. |
|  | D) | The definition of capacity, in an operations management context, makes a clear distinction between efficient and inefficient use of capacity. |
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| 2 |  |  Capacity utilization rate can be computed as: |
|  | A) | Capacity used - best operating level |
|  | B) | Capacity used x best operating level |
|  | C) | Capacity used / best operating level |
|  | D) | Capacity used + best operating level |
|  | E) | None of the above |
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| 3 |  |  Capacity flexibility can be achieved through: |
|  | A) | Flexible plants |
|  | B) | Flexible processes |
|  | C) | Flexible workers |
|  | D) | Strategies that use the capacity of other organizations |
|  | E) | All of the above |
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| 4 |  |  The assumptions of learning curve theory include: |
|  | A) | The amount of time required to complete a given task will be less each time the task is undertaken. |
|  | B) | The unit time will decrease at an increasing rate |
|  | C) | The reduction in time will follow a predictable pattern |
|  | D) | Both A and B |
|  | E) | A and C |
|  | F) | A, B, and C |
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| 5 |  |  Which of the following statements are true about learning curves? |
|  | A) | Learning curves can be applied to individuals and organizations. |
|  | B) | A learning curve may be developed from an arithmetic tabulation, by logarithms, or by some other curve-fitting method. |
|  | C) | Time per unit and units of output per time period are two ways to think about the improved performance that comes with learning curves. |
|  | D) | A and B |
|  | E) | A and C |
|  | F) | A, B, and C |
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| 6 |  |  If firm experiences a learning rate of 70% and unit number 1 took 10 hours, then how many hours will unit number 9 take? |
|  | A) | 7 |
|  | B) | 4.9 |
|  | C) | 3.23 |
|  | D) | 3.43 |
|  | E) | none of the above |
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| 7 |  |  Which of the following is an accurate statement for an 80% learning process? |
|  | A) | The time for the second unit should be approximately 80% of the time required for the first unit. |
|  | B) | The time for the 8th unit should be approximately 64% of the time required for the second unit. |
|  | C) | The time for the 3rd unit is 80% of the time for the 2nd unit. |
|  | D) | Both A and B. |
|  | E) | None of the answers are correct. |
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| 8 |  |  What would be the labor hours required for the 80th unit if the first unit took 12.5 hours and the learning rate is 80%? |
|  | A) | 3. 05 hours |
|  | B) | 14.5 hours |
|  | C) | 0.31 hours |
|  | D) | 4.56 hours |
|  | E) | 3.8 hours |
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| 9 |  |  Considerations in adding capacity include: |
|  | A) | Maintaining system balance |
|  | B) | Frequency of capacity additions |
|  | C) | External sources of capacity |
|  | D) | A and B |
|  | E) | A and C |
|  | F) | A, B, and C |
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| 10 |  |  The types of costs to consider when adding capacity are the cost of upgrading frequently and the cost of upgrading too infrequently. |
|  | A) | True |
|  | B) | False |
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| 11 |  |  The steps to determining capacity requirements include: |
|  | A) | Using decision trees to evaluate capacity alternatives |
|  | B) | Calculating equipment and labor requirements to meet product line forecasts |
|  | C) | Projecting labor and equipment availabilities over the planning horizon |
|  | D) | A and B |
|  | E) | B and C |
|  | F) | A, B, and C |
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| 12 |  |  Service capacity: |
|  | A) | is highly time and location dependent |
|  | B) | is subject to less volatile demand fluctuations |
|  | C) | utilization directly impacts service quality |
|  | D) | A and B |
|  | E) | A and C |
|  | F) | A, B, and C |
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