Test3MultipleChoice

Test3MultipleChoice - Chapter 6 1. Long-term capacity plans...

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Chapter 6 1. Long-term capacity plans deal with: a. investments in new facilities. b. workforce size. c. inventories. d. overtime budgets. 2. Long-term capacity decisions that confront managers include all of the following except: a. capital equipment. b. additional land. c. buildings. d. workforce size. 3. Regarding the measurement of capacity, when a firm provides a relatively small number of standardized products and services: a. capacity cannot be determined reliably. b. input measures are typically used. c. output measures are typically used. d. utilization becomes equal to capacity. 4. Input measures include such metrics as: a. the number of customers served per hour. b. the number of trucks produced per day. c. the number of machine hours available. d. the number of bills processed in a week. Answer: c 5. The degree to which equipment, space, or labor is being used is commonly referred to as: a. capacity. b. output. c. utilization. d. cushion. 6. The transition from economies of scale to diseconomies of scale: a. is more likely to occur in a service operation. b. is more likely to occur in a manufacturing operation. c. is more likely to occur when utilization is low. d. contains the point at which average unit costs are at their lowest. 7. Large, infrequent jumps in capacity are characteristic of companies that: a. have an expansionist strategy. b. have a wait-and-see strategy. c. have low utilization. d. have high utilization. 8. Which one of the following factors usually motivates a smaller capacity cushion? a. Unevenly distributed demands b. High capital intensity c. High penalty costs for overtime usage d. Requests for quick customer services 9. Which one of the following factors usually calls for a larger capacity cushion?
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a. Uncertain demand b. High capital intensity c. More reliable equipment d. High worker flexibility 10. Which one of the following statements about capacity cushions is best? a. Companies with flexible flow processes tend to have small capacity cushions. b. Companies with high capital costs tend to have large capacity cushions. c. Companies that have considerable customization tend to have larger capacity cushions. d. Constant demand rates require larger-capacity cushions. 11. Which one of the following statements concerning capacity cushions is best? a. Large capacity cushions are used more often when future demand is level and known. b. Small capacity cushions are used extensively in capital intensive firms. c. Capacity cushions are used primarily in manufacturing organizations, not in service organizations. d. Small cushions are used in organizations where the products and services produced often change. 12. If a system is well balanced, which one of the following changes usually calls for a larger capacity cushion? a.
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Test3MultipleChoice - Chapter 6 1. Long-term capacity plans...

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