Question 1

Which of the following statements about capacity strategies is NOT correct?

Accepted Answer

A lag capacity strategy is more cautious, increasing capacity only after demand has been demonstrated, which might not be well-suited for a period of high growth where not meeting demand could mean lost market share. Lead and match strategies are more proactive approaches to capacity planning in periods of growth.

Question 2

In general, higher conformance quality reduces capacity since the extra care taken during production slows the output rate.

Accepted Answer

Higher conformance quality often leads to more efficient production processes and less waste, which can actually increase capacity by reducing the need for rework and repairs.

Question 3

How could the following service organizations measure capacity - a university, a restaurant, and pet groomer?

Accepted Answer

Answers will vary. A university might measure capacity by the number of classes, majors, student credit hours, residential students, and other measures. A restaurant may measure capacity by the number of patrons or number of tables or perhaps by the number of seatings per night. A pet groomer measures capacity by the number of grooming stations or the number of a certain type of animal that can be groomed in a day.

Question 4

Capacity is the capability of a worker, machine, work center, plant, or organization to produce output per time period.

Accepted Answer

Capacity refers to the ability of a system, unit, or organization to perform or produce something in a given period of time.

Question 5

Which is a benefit of a virtual supply chain?

Accepted Answer

The answer of Which is a benefit of a virtual...

Question 6

A bottling machine has a theoretical capacity of 100 bottles per minute. During every ten hour shift it operates continuously but is shut down once for 30 minutes for cleaning, inspection, and lubrication. What is its rated capacity?

Accepted Answer

The machine operates continuously for 10 hours, which is equal to 600 minutes. During this time, it is shut down once for 30 minutes, so the actual operating time is 570 minutes.

The rated capacity is the maximum output that can be achieved with ideal conditions. In this case, the theoretical capacity is 100 bottles per minute, but because the machine is shut down for 30 minutes, the actual production time is reduced.

So, the rated capacity is calculated as:
Rated capacity = (actual operating time / total operating time) x theoretical capacity
Rated capacity = (570 / 600) x 100
Rated capacity = 95 bottles/minute

Therefore, the best choice is B.

Question 7

The maximum output capability of a system, allowing for no adjustments for preventive maintenance or unplanned downtime is the ________.

Accepted Answer

The answer of The maximum output capability of a system,...

Question 8

A lead capacity strategy has the advantage of:

Accepted Answer

A lead capacity strategy involves adding capacity in anticipation of an increase in demand to ensure that the organization can meet customer needs during all types of growth. This approach contrasts with lagging strategies, where capacity is added only after demand has been proven, or a match strategy, which tries to closely align capacity additions with predicted demand increases.

Question 9

Which of these capacity strategies has the benefit of a good balance of productive resources?

Accepted Answer

The match capacity strategy involves balancing capacity with the demand, resulting in a good balance of productive resources. This is because it avoids excess or idle capacity, which can be costly, while ensuring that there is enough capacity to meet demand. The lead capacity strategy involves having excess capacity ahead of demand, which can lead to unnecessary costs, while the lag capacity strategy involves having capacity after demand, which can result in lost sales opportunities. The flux capacity strategy involves varying capacity according to demand fluctuations, which can be difficult to manage and optimize.

Question 10

How does conformance quality impact capacity?

Accepted Answer

The answer of How does conformance quality impact capacity?...

Question 11

Which of the following is NOT an appropriate measure of capacity?

Accepted Answer

Thickness of laminate on a desktop is not a measure of capacity, but rather a measure of physical properties. The other options all measure a rate of productivity or output in terms of quantity per unit of time.

Question 12

Define theoretical and rated capacity and name four factors that affect a company's capacity. Indicate how each factor impacts rated capacity.

Accepted Answer

The answer of Define theoretical and rated capacity and name...

Question 13

A firm's capacity can be limited by members of its supply chain.

Accepted Answer

A firm's capacity can be limited by the capacity constraints, capabilities, and performance of its suppliers, distributors, and other members of its supply chain. Any disruption or bottleneck in the supply chain can impact a firm's ability to produce and deliver goods or services.

Question 14

A firm is able to meet current demand. If it adopts a lead capacity strategy, then it is probably making the assumption that demand will increase in the future.

Accepted Answer

A lead capacity strategy involves increasing capacity in anticipation of future demand rather than waiting until the demand exceeds current capacity. Therefore, it is based on the assumption that demand will increase in the future.

Question 15

Which of the following statements about theoretical capacity is best?

Accepted Answer

Theoretical capacity refers to the maximum output that could be achieved in an ideal scenario without any downtime, including breaks, maintenance, or unexpected issues. Running a factory at its theoretical capacity for a short period can be a strategy to meet unusually high demand without the long-term costs of increasing resource levels permanently. Choices A, C, and D describe considerations more aligned with practical or rated capacity, which accounts for real-world limitations and inefficiencies.

Question 16

________ capacity is always greater than or equal to ________ capacity.

Accepted Answer

The answer of ________ capacity is always greater than or...

Question 17

A traditional university classroom has room for 30 students and is scheduled for use during 12 consecutive one hour periods from 8:00 a.m. to 8:00 p.m. in the spring semester. Its theoretical capacity is therefore half of its rated capacity.

Accepted Answer

The theoretical capacity of the classroom is based on its full utilization during the scheduled periods, meaning if it can accommodate 30 students for each of the 12 one-hour periods, it is operating at its rated or maximum capacity, not half.

Question 18

Which of these capacity strategies has the benefit of the greatest level of productivity?

Accepted Answer

The answer of Which of these capacity strategies has the...

Question 19

Virtual supply chains have the advantage of efficiency, but this advantage is gained in a trade-off with decreased flexibility.

Accepted Answer

Virtual supply chains actually increase flexibility because they allow companies to quickly adjust to changes in demand, supply, and market conditions by leveraging digital technologies and networks.

Question 20

The long-term, expected output capability of a resource or system is the ________.

Accepted Answer

The answer of The long-term, expected output capability of a...

Quiz 6: Managing Capacity