ISOM 351 STUDY GUIDE TEST PAPER
QUESTIONS AND SOLUTIONS GRADED A+
RESOURCE
●● Regarding the measurement of capacity, when a firm provides a
relatively small number of standardized products and services:
a. capacity cannot be determined reliably
b. input measures are typically used
c. output measures are typically used
d. utilization becomes equal to capacity
Answer: c. output measures are typically used
●● The degree to which equipment, space, or labor is being used is
commonly referred to as:
a. capacity
b. output
c.utilization
d. cushion
Answer: c.utilization
●● A lumber mill is capable of producing 10,000 board feet of lumber
per day, when it runs ten hours per day with minimal breaks. Over the
past year, forestry legislation has reduced the availability of raw
,materials, so the mill has produced an average of 4,575 board feet per
day. What is the capacity of the plant?
a. 4,575 board feet/day
b. 10,000 board feet/day
c. 45.75%
d. 219%
Answer: b. 10,000 board feet/day
●● A lumber mill is capable of producing 10,000 board feet of lumber
per day, when it runs ten hours per day with minimal breaks. Over the
past year, forestry legislation has reduced the availability of raw
materials, so the mill has produced an average of 4,575 board feet per
day. What is the utilization of the plant?a. 4,575 board feet/day
b. 10,000 board feet/day
c. 219%
d. 45.75%
Answer: d. 45.75%
●● Large, infrequent jumps in capacity are characteristic of companies
that:
a. have an expansionist strategy
b. have a wait-and-see strategy
c. have low utilization
d. have high utilization
, Answer: a. have an expansionist strategy
●● Which one of the following factors usually motivates a smaller
capacity cushion?
a. unevenly distributed demands
b. high capital intensity
c. high penalty costs for overtime usage
d. requests for quick customer services
Answer: b. high capital intensity
●● Which one of the following factors usually calls for a larger capacity
cushion?
a. uncertain demand
b. high capital intensity
c. more reliable equipment
d. higher worker flexibility
Answer: a. uncertain demand
●● If a system is well balanced, which one of the following changes
usually calls for a larger capacity cushion?
a. higher capital intensity
b. higher worker flexibility
c. requests for fast delivery times
QUESTIONS AND SOLUTIONS GRADED A+
RESOURCE
●● Regarding the measurement of capacity, when a firm provides a
relatively small number of standardized products and services:
a. capacity cannot be determined reliably
b. input measures are typically used
c. output measures are typically used
d. utilization becomes equal to capacity
Answer: c. output measures are typically used
●● The degree to which equipment, space, or labor is being used is
commonly referred to as:
a. capacity
b. output
c.utilization
d. cushion
Answer: c.utilization
●● A lumber mill is capable of producing 10,000 board feet of lumber
per day, when it runs ten hours per day with minimal breaks. Over the
past year, forestry legislation has reduced the availability of raw
,materials, so the mill has produced an average of 4,575 board feet per
day. What is the capacity of the plant?
a. 4,575 board feet/day
b. 10,000 board feet/day
c. 45.75%
d. 219%
Answer: b. 10,000 board feet/day
●● A lumber mill is capable of producing 10,000 board feet of lumber
per day, when it runs ten hours per day with minimal breaks. Over the
past year, forestry legislation has reduced the availability of raw
materials, so the mill has produced an average of 4,575 board feet per
day. What is the utilization of the plant?a. 4,575 board feet/day
b. 10,000 board feet/day
c. 219%
d. 45.75%
Answer: d. 45.75%
●● Large, infrequent jumps in capacity are characteristic of companies
that:
a. have an expansionist strategy
b. have a wait-and-see strategy
c. have low utilization
d. have high utilization
, Answer: a. have an expansionist strategy
●● Which one of the following factors usually motivates a smaller
capacity cushion?
a. unevenly distributed demands
b. high capital intensity
c. high penalty costs for overtime usage
d. requests for quick customer services
Answer: b. high capital intensity
●● Which one of the following factors usually calls for a larger capacity
cushion?
a. uncertain demand
b. high capital intensity
c. more reliable equipment
d. higher worker flexibility
Answer: a. uncertain demand
●● If a system is well balanced, which one of the following changes
usually calls for a larger capacity cushion?
a. higher capital intensity
b. higher worker flexibility
c. requests for fast delivery times
