Question 1

The basic notion of economies of scale is that as a plant gets larger and volume increases, the average cost per unit of output drops.

Accepted Answer

A) True 
 B)False

Question 2

Making adjustments to eliminate the variance between planned and actual output is tied into intermediate-range capacity planning.

Accepted Answer

A) True 
 B)False

Question 3

At some point, the size of a growing plant can become too large and diseconomies of scale become a capacity planning problem.

Accepted Answer

A) True 
 B)False

Question 4

The smaller the capacity cushion, the better.

Accepted Answer

A) True 
 B)False

Question 5

The ultimate in plant flexibility is a one-hour-changeover plant.

Accepted Answer

A) True 
 B)False

Question 6

The time duration in which capacity planning is greater than one year is?

Accepted Answer

A)   Immediate range
B)   Short range
C)   Medium range
D)   Intermediate range
E)   Long rangeF) A) and C)
G) C) and D)

Question 7

The capacity cushion is the ratio of capacity used to the best capacity level.

Accepted Answer

A) True 
 B)False

Question 8

Service capacity planning is performed almost identically to manufacturing capacity planning. The only difference is that workers are a major capacity issue for services.

Accepted Answer

A) True 
 B)False

Question 9

The capacity utilization rate is found by dividing best operating level by capacity used.

Accepted Answer

A) True 
 B)False

Exam 5: Strategic Capacity Management

The basic notion of economies of scale is that as a plant gets larger and volume increases, the average cost per unit of output drops.

Correct Answer
verified

The ultimate in plant flexibility is a one-hour-changeover plant.

Correct Answer
verified

The time duration in which capacity planning is greater than one year is?

Correct Answer
verified

The smaller the capacity cushion, the better.

Correct Answer
verified

Making adjustments to eliminate the variance between planned and actual output is tied into intermediate-range capacity planning.

Correct Answer
verified

At some point, the size of a growing plant can become too large and diseconomies of scale become a capacity planning problem.

Correct Answer
verified

The capacity utilization rate is found by dividing best operating level by capacity used.

Correct Answer
verified

Service capacity planning is performed almost identically to manufacturing capacity planning. The only difference is that workers are a major capacity issue for services.

Correct Answer
verified

The capacity cushion is the ratio of capacity used to the best capacity level.

Correct Answer
verified

Exam 5: Strategic Capacity Management

The basic notion of economies of scale is that as a plant gets larger and volume increases, the average cost per unit of output drops.

Correct AnswerverifiedShow Answer

The ultimate in plant flexibility is a one-hour-changeover plant.

Correct AnswerverifiedShow Answer

The time duration in which capacity planning is greater than one year is?

Correct AnswerverifiedShow Answer

The smaller the capacity cushion, the better.

Correct AnswerverifiedShow Answer

Making adjustments to eliminate the variance between planned and actual output is tied into intermediate-range capacity planning.

Correct AnswerverifiedShow Answer

At some point, the size of a growing plant can become too large and diseconomies of scale become a capacity planning problem.

Correct AnswerverifiedShow Answer

The capacity utilization rate is found by dividing best operating level by capacity used.

Correct AnswerverifiedShow Answer

Service capacity planning is performed almost identically to manufacturing capacity planning. The only difference is that workers are a major capacity issue for services.

Correct AnswerverifiedShow Answer

The capacity cushion is the ratio of capacity used to the best capacity level.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified