Question 1

If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has one machine capable of producing 4,500 units per week,how many similar machines might you plan to acquire? ___________________

Accepted Answer

The answer of If demand for product "A" were forecast...

Question 2

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

Accepted Answer

Many issues must be considered when adding or decreasing capacity.Three important ones are maintaining system balance,frequency of capacity additions or reductions,and the use of external capacity.In many cases,the size of a plant may be influenced by factors other than the internal equipment,labor,and other capital expenditures.A major factor may be the cost to transport raw materials

Question 3

Which of the following is not a step used in determining production capacity requirements?

Accepted Answer

In determining capacity requirements,we must address the demands for individual product lines,individual plant capabilities,and allocation of production throughout the plant network.Typically this is done according to the following steps:1.Use forecasting techniques to predict sales for individual products within each product line.2.Calculate equipment and labor requirements to meet product line forecasts.3.Project labor and equipment availabilities over the planning horizon.

Question 4

Capacity planning involving acquisition or disposal of fixed assets such as buildings,equipment or facilities is considered as which one of the following planning horizons?

Accepted Answer

Long range: greater than one year.Where productive resources (such as buildings,equipment,or facilities)take a long time to acquire or dispose of,long-range capacity planning requires top management participation and approval.

Question 5

The capacity focus concept can be put into practice through a mechanism called which of the following?

Accepted Answer

The capacity focus concept can be operationalized through the mechanism of plant within a plant (PWP).

Question 6

What is an important difference between capacity planning in services as contrasted to capacity planning in manufacturing operations?

Accepted Answer

Although capacity planning in services is subject to many of the same issues as manufacturing capacity planning,and facility sizing can be done in much the same way,there are several important differences.Service capacity is more time and location dependent,it is subject to more volatile demand fluctuations,and utilization directly impacts service quality.

Question 7

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units,what is the capacity utilization rate? ____________________

Accepted Answer

The answer of If the best operating level of a...

Question 8

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

Accepted Answer

Short range: less than one month.This is tied into the daily or weekly scheduling process and involves making adjustments to eliminate the variance between planned and actual output.

Question 9

A chance node on a decision tree has four possible outcomes each worth $100,000.The probabilities of the outcomes occurring are assessed as 10%,27%,43% and 20%.What is the expected value of this chance node? ____________________

Accepted Answer

The answer of A chance node on a decision tree...

Question 10

If the actual output of a piece of equipment during an hour is 500 units and it's best operating level is at a rate of 400 units per hour,which of the following is the capacity utilization rate?

Accepted Answer

500 units of output divided by 400 units best operating level = 1.25

Question 11

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units,which of the following is the capacity utilization rate?

Accepted Answer

300 units of output divided by 400 units best operating level = 0.75

Question 12

At a decision point in a decision tree,which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%;the expected benefit of selecting machine B is $80,000 with a probability of 50% and the expected benefit of selecting machine C is $60,000 with a probability of 75%?

Accepted Answer

The answer of At a decision point in a decision...

Question 13

A chance node on a decision tree has four possible outcomes worth $10,000,$20,000,$30,000 and minus $100,000 respectively.The probabilities of these outcomes occurring are assessed as 10%,25%,50% and 15% correspondingly.What is the expected value of this chance node? _________________________

Accepted Answer

The answer of A chance node on a decision tree...

Question 14

Compared with a service operation,a manufacturing operation's capacity is which of the following?

Accepted Answer

Service capacity is more time- and location-dependent, (than manufacturing capacity)it is subject to more volatile demand fluctuations,and utilization directly impacts service quality.Also,unlike goods,services cannot be stored for later use.

Question 15

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units,which of the following is the capacity cushion?

Accepted Answer

A capacity cushion is an amount of capacity in excess of expected demand

Question 16

If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has trained labor and equipment sufficient to produce 150,000 units per month,is the capacity cushion positive or negative? ____________________

Accepted Answer

The answer of If demand for product "A" were forecast...

Question 17

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

Accepted Answer

Intermediate range: monthly or quarterly plans for the next 6 to 18 months.Here,capacity may be varied by such alternatives as hiring,layoffs,new tools,minor equipment purchases,and subcontracting.

Question 18

If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has one machine capable of producing 75,000 units per month,how much of product "A" might you plan to acquire through outsourcing? _______________

Accepted Answer

The answer of If demand for product "A" were forecast...

Question 19

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

Accepted Answer

Flexible workers have multiple skills and the ability to switch easily from one kind of task to another.They require broader training than specialized workers.

Question 20

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?

Accepted Answer

A decision tree is a schematic model of the sequence of steps in a problem and the conditions and consequences of each step.

Quiz 4: Strategic Capacity Management

If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has one machine capable of producing 4,500 units per week,how many similar machines might you plan to acquire? ___________________

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

Which of the following is not a step used in determining production capacity requirements?

Capacity planning involving acquisition or disposal of fixed assets such as buildings,equipment or facilities is considered as which one of the following planning horizons?

The capacity focus concept can be put into practice through a mechanism called which of the following?

What is an important difference between capacity planning in services as contrasted to capacity planning in manufacturing operations?

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units,what is the capacity utilization rate? ____________________

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

A chance node on a decision tree has four possible outcomes each worth $100,000.The probabilities of the outcomes occurring are assessed as 10%,27%,43% and 20%.What is the expected value of this chance node? ____________________

If the actual output of a piece of equipment during an hour is 500 units and it's best operating level is at a rate of 400 units per hour,which of the following is the capacity utilization rate?

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units,which of the following is the capacity utilization rate?

A chance node on a decision tree has four possible outcomes worth $10,000,$20,000,$30,000 and minus $100,000 respectively.The probabilities of these outcomes occurring are assessed as 10%,25%,50% and 15% correspondingly.What is the expected value of this chance node? _________________________

Compared with a service operation,a manufacturing operation's capacity is which of the following?

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units,which of the following is the capacity cushion?

If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has trained labor and equipment sufficient to produce 150,000 units per month,is the capacity cushion positive or negative? ____________________

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

If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has one machine capable of producing 75,000 units per month,how much of product "A" might you plan to acquire through outsourcing? _______________

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

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?