Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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A measure of capacity that generally does not include adjustments for preventive
maintenance or unplanned downtime is called
a. | Sustainable capacity | b. | Effective capacity | c. | Theoretical
capacity | d. | Safety capacity |
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2.
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The capacity expansion approach that utilizes the most safety capacity is
a. | One large capacity increase | b. | Small capacity increases that match
demand | c. | Small capacity increases that lead demand | d. | Small capacity
increases that lag demand |
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3.
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All the following are means to adjust short-term capacity except
a. | Add peripheral goods and/or services | b. | Add or share equipment | c. | Sell unused
capacity | d. | Change labor skill mix |
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4.
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All the following are means to manage capacity by shifting and stimulating
demand except
a. | Vary price of goods or services | b. | Add peripheral goods and/or
services | c. | Provide reservations | d. | Shift work to slack
periods |
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5.
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Overbooking
a. | Guarantees all perishable resources will be used | b. | Keeps customers
happy | c. | May mean some customers will be turned away | d. | Means customers will
be billed if they do not show |
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6.
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An assembly line normally operates two shifts a day, five days per week. Under
ideal conditions, each shift can produce 475 assemblies. Under normal conditions, 380 assemblies can
be completed per shift. What is the daily theoretical capacity?
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7.
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An assembly line normally operates two shifts a day, five days per week. Under
ideal conditions, each shift can produce 475 assemblies. Under normal conditions, 380 assemblies can
be completed per shift. Determine the actual utilization if 700 items are assembled a day.
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8.
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A ____ is a one-time variation that is explainable.
a. | Cyclical pattern | b. | Random Variation | c. | Irregular
variation | d. | Seasonal pattern |
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9.
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Which of the following is not a statistical method?
a. | Delphi | b. | Exponential smoothing | c. | Moving
average | d. | Linear regression |
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10.
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Which of the following is not a capacity planning decision option?
a. | Promotion and advertising | b. | Subcontracting | c. | Layoffs | d. | Building a new
plant |
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11.
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Which planning strategy generally would result in the least amount of
inventory?
a. | Level | b. | Chase | c. | Mixed | d. | Lot-for-Lot
(LFL) |
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12.
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The purpose of production planning is to
a. | Minimize the work force size | b. | Maximize the production
rate | c. | Minimize the cost of meeting demand | d. | Optimize the inventory
level |
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13.
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Which approach is most appropriate for forecasting demand for a new
product?
a. | A causal model | b. | A Delphi study | c. | A time-series
model | d. | A regression model |
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14.
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____ must jointly attack the waiting time problem.
a. | Marketing and accounting | b. | Operations and finance | c. | Marketing and
operations | d. | Sales and HR |
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15.
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As processes are standardized, the variance in service times
a. | Increases | b. | Becomes zero | c. | Decreases | d. | Stays approximately the
same |
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