Question 1

The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as
A)design capacity.
B)available capacity.
C)actual capacity.
D)rough capacity.

Accepted Answer

Actual capacity takes into account the inefficiencies, scrap, and rework that occur in any production process, providing a realistic measure of what a system can produce.

Question 2

The rate of capacity utilization that minimizes average product cost is known as
A)economies of scale.
B)diseconomies of scale.
C)best operating level.
D)efficiency.

Accepted Answer

The best operating level refers to the rate of capacity utilization where the average product cost is minimized, indicating the most efficient scale of operation for a firm.

Question 3

The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as ________.

Accepted Answer

The answer of The capacity for a machine or system...

Question 4

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate.Hence the actual capacity of the printer is 36 pages per minute (ppm).

Accepted Answer

The actual capacity considering a 5% jamming rate would be 95% of 40 ppm, which is 38 ppm, not 36 ppm.

Question 5

The capacity for a machine or system that is available after accounting for scrap and rework is known as
A)design capacity.
B)available capacity.
C)actual capacity.
D)rough capacity.

Accepted Answer

Available capacity is the capacity of a machine or system that is available after accounting for scrap and rework.

Question 6

Which of these factors need to be considered when computing the actual capacity of a machine or system?
A)Scrap
B)Inefficiencies
C)Rework
D)All of the above
E)A and C above

Accepted Answer

All of the above factors - scrap, inefficiencies, and rework - need to be considered when computing the actual capacity of a machine or system, as they all can reduce the effective output.

Question 7

Increasing the capacity of the operation just before a bottleneck operation will increase the output of the process.

Accepted Answer

Increasing the capacity just before a bottleneck does not increase the overall output because the bottleneck operation determines the maximum throughput of the process.

Question 8

The capacity for a machine or system that is available after accounting only for scrap and rework is known as actual capacity.

Accepted Answer

Actual capacity refers to the total capacity a machine or system can achieve under real-world conditions, taking into account not only scrap and rework but also downtime, maintenance, and other operational inefficiencies.

Question 9

The capacity that a machine or system should realize given optimal operating conditions is known as
A)design capacity.
B)available capacity.
C)actual capacity.
D)rough capacity.

Accepted Answer

Design capacity refers to the maximum output that a system or machine is designed to handle under ideal or optimal conditions. This contrasts with actual capacity, which is what the system or machine achieves in real-world conditions, often influenced by various constraints and inefficiencies.

Question 10

The capacity that a machine or system should realize given optimal operating conditions is known as ________.

Accepted Answer

The answer of The capacity that a machine or system...

Question 11

The productive capability of a firm is known as ________.

Accepted Answer

The answer of The productive capability of a firm is...

Question 12

The design capacity of a machine or system refers to the maximum output that can possibly be attained given optimal operating conditions.

Accepted Answer

Design capacity is the maximum output that a machine or system can theoretically produce under ideal or optimal conditions, assuming everything operates perfectly without any disruptions or inefficiencies.

Question 13

A step in a process that constraints the throughput of the process is known as ________.

Accepted Answer

The answer of A step in a process that constraints...

Question 14

The capacity for a machine or system that is available after accounting for scrap and rework is known as ________.

Accepted Answer

The answer of The capacity for a machine or system...

Question 15

The phenomenon where producing more such that the average cost of production for the item decreases is known as
A)economies of scale.
B)diseconomies of scale.
C)best operating level.
D)efficiency.

Accepted Answer

Economies of scale refer to the cost advantage experienced by firms when production becomes efficient, leading to a decrease in the average cost of production as the scale of production is increased.

Question 16

The phenomenon where production of more units results in higher average cost per item is known as
A)economies of scale.
B)diseconomies of scale.
C)best operating level.
D)disefficiency.

Accepted Answer

Diseconomies of scale occur when producing more units results in a higher average cost per item, typically due to inefficiencies that arise from scaling up production.

Question 17

The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as available capacity.

Accepted Answer

The capacity described is known as "effective capacity," not "available capacity." Effective capacity accounts for inefficiencies, scrap, and rework.

Question 18

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate,and also on average 20% of the time is lost on account of the operator loading the paper,aligning the print cartridge,etc.Thus,effectively the printer can print how many pages per minute (ppm)?
A)30.4
B)36
C)28.8
D)24.6

Accepted Answer

The printer can print 40 pages per minute, but it has a 5% jamming rate, which means that 5% of the time, the printer will be jammed and unable to print. This means that the printer can effectively print 40 * 0.95 = 38 pages per minute. Additionally, 20% of the time is lost on account of the operator loading the paper, aligning the print cartridge, etc., which means that the printer can effectively print 38 * 0.8 = 30.4 pages per minute.

Question 19

The capacity that a machine or system should realize given optimal operating conditions is the design capacity.

Accepted Answer

Design capacity refers to the maximum output that a machine or system is theoretically able to produce under ideal or optimal conditions, assuming everything operates perfectly without any interruptions or slowdowns.

Question 20

A printer has been rated by the manufacturer to print 40 pages per minute (ppm).This is the ________ capacity of the printer.

Accepted Answer

The answer of A printer has been rated by the...

Quiz 10: Sales and Operations Planning and Enterprise Resource Planning

The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as

The rate of capacity utilization that minimizes average product cost is known as