PERFECTLY ANSWERED TO PASS!!
Utilization is defined as the ratio of:
actual output to design capacity.
Efficiency is defined as the ratio of:
actual outputs to effective capacity.
Production units have an optimal rate of output where:
average unit costs are minimum.
The ratio of actual output to design capacity is:
utillization
When determining the timing and degree of capacity change, one can use the approach of:
expand-early strategy.
Unbalanced systems are evidenced by:
bottleneck operations
,Allowances for which of these factors would be subtracted from design capacity when calculating
effective capacity?
all of these choices are correct.
Which of the following is not a criterion for developing capacity alternatives?
design structured, rigid systems
Operation X feeds into operation Y. Operation X has an effective capacity of 55 units per hour. Operation
Y has an effective capacity of 50 units per hour. Finding a way to increase Y's effective capacity would be
an example of ________ a constraint.
overcoming
Which of the following is not a factor that influences how frequently or infrequently capacity choices are
made?
supply chain disruption
Which of the following is not a reason why capacity decisions are so important?
Capacity chunks can be added or deleted quickly and inexpensively.
The decision to outsource opens the firm up to certain risks, among them _________ and ________.
loss of direct control over operations; need to disclose proprietary information.
Which of the following makes using present value approaches in capacity decisions difficult?
, Capacity decisions are made amidst much uncertainty, so cash flows cannot be estimated with great
accuracy.
Which of the following is not a strategy to manage service capacity or cope with service capacity
limitations?
storing inventories of the service.
The maximum possible output given a product mix, scheduling difficulties, personal time, and so on is:
effective capacity
Maximum capacity commonly refers to the upper limit on:
the rate of output
Which of the following is the case where capacity is measured in terms of inputs?
number of passenger seats that can be filed per day on an airline route.
At the break-even point:
total cost equals total revenue
Which of the following is a key question in capacity planning?
When do we need the capacity?