TB Ch 9 - OPM Ch 9 Study online at quizlet.com_22fx01 1 1...

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1. 1. Capacity planning can occur at all but which level: a) organization b) division c) assembly line d) machine level e) board of directors level Ans: e Section Ref: Capacity Planning Level: moderate 2. 2. Which of the following is a reason capacity and location decisions are usually made simultaneously? a) in order to get them in the operating budget on a consistent basis b) it makes it easier to understand capacity c) often there is not enough time available to separate them d) they require the same types of information e) the size of a new facility may affect its location Ans: e Section Ref: Capacity Planning Level: moderate 3. 3. The maximum output that can be achieved by a facility is ____________. 4. 4. Capacity decisions at the strategic level include ____________________. 5. 5. If capacity is excessive, a company may have to ______________________. 6. 6. Capacity planning is complicated by the fact that ___________________. a) capital markets are complex b) existing facilities may become obsolete c) capacity is difficult to define d) capacity is usually purchased in chunks, rather than smooth increments e) depreciation must be calculated Ans: d Section Ref: Capacity Planning Level: moderate 7. 7. Investments in building or purchasing long-term production facilities are inherently risky due to __________. a) uncertainty in forecasting future demands b) unexpected changes in interest rates c) durability of materials d) corporate mergers e) rapid technology changes Ans: a Section Ref: Capacity Planning Level: hard 8. 8. Capacity planning is difficult because 9. 9. An example of an input measure of capacity is _____________________.
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