chapter 4

Question 1

When evaluating capacity , managers need to consider both resource inputs and product outputs

Answer 1

true

Question 1

When a firm design capacity is less than the capacity required to meet its demand, it is said to have a negative capacity cushion

Answer 1

True

Question 2

outsourcing is a common source of external capacity

Answer 2

True

Question 3

in solving a decision tree problem, calculations start at the ends of the “branches” of the tree and work backwards to the base of the tree

Answer 3

true

Question 4

best operating level is usually a multiple of the level of capacity for which a process was designed

Answer 4

false

Question 5

compared with a service operation, a manufacturing operations capacity is which of the following?

Answer 5

demand can be smoothed by inventory policies

Question 6

capacity planning that involves hiring, layoffs, some new tooling, minor equipment purchases, and subcontracting is considered as which of the following planning horizons?

Answer 6

intermediate range

Question 7

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 untis per hour, which of the following is the capacity utilization rate?

Answer 7

1.25

cur= 500 units/400 units= 1/25

Question 8

when deciding to add capacity to a factory which of the following need not be considered?

Answer 8

immediate product demand

Question 9

the capacity utilization rate is found by dividing best operating level by capacity used?

Answer 9

False

Question 10

the way to build in greater flexibility in your workers is to do which of the following?

Answer 10

provide a broader range of training

Question 11

because services can not be stored for later use, service managers consider time as one of their supplies or resources

Answer 11

True

Question 12

a production facility works best when it focuses on a fairly limited set of production objectives

Answer 12

true

Question 13

in practice, achieving a perfectly balanced plant is usually desirable but impossible

Answer 13

false

Question 14

the ultimate in plant flexibility is a one hour changeover time plant

Answer 14

false

Question 15

capacity planning involving consideration of prodution scheduling and inventory position is characterized by which one of the following time durations?

Answer 15

short range

Question 16

sharing capacity is a common source of external capacity

Answer 16

true

Question 17

which of the following models uses a schematic model of the sequence of steps in a problem and the conditions and consequences of each step?

Answer 17

decision trees

Question 18

a decision tree problem does not need probabilities or payoffs to generate a solution

Answer 18

false

Question 19

low rates of capacity utilization in service organizations are never appropriate

Answer 19

false

Question 20

overtime and personnel transfers are solutions to capacity problems in the intermediate term

Answer 20

false

Question 21

the larger the capacity cushion the better

Answer 21

false

Question 22

capacity can be defined as the ability to hold, receive, store, or accomodate

Answer 22

true