Capsim Simulation Study Guide | UPDATED Questions with
100% Verified Answers
Q1: Maximum plant utilization capacity
A: 180% (achieved via a double shift plus 80% overtime).
Q2: The five market segments in Capsim
A: Traditional, Low End, High End, Performance, and Size.
Q3: Maximum sales budget for diminishing returns
A: $3,000,000 per segment.
Q4: Most direct way to decrease material costs
A: Lowering MTBF or repositioning products closer to the lowerleft of the perceptual map.
Q5: Does the Courier show competitor promo/sales?
A: Yes.
Q6: Segment to refrain from repositioning early
A: Traditional segment.
Q7: Single most important lowend buying criterion
A: Price.
Q8: Two priceinsensitive market segments
A: High End and Performance.
Q9: What promotion budget increases
A: Product awareness.
, Q10: How to decrease product age
A: Repositioning the product via R&D or introducing a new product.
Q11: How to increase product age
A: Doing nothing (age increases naturally over time).
Q12: Budget affecting the segment as a whole
A: Sales budget (affects accessibility).
Q13: Price expectations change rate each round
A: They drop by $0.50 each year.
Q14: Do all segments grow at the same rate?
A: No, each segment grows at its own unique rate.
Q15: Aiming for zero ending inventory
A: No, you should aim to have about one month's worth (78%) left over to prevent
stockouts.
Q16: Customer survey forecasting formula
A: Segment potential sales × (Your CSS / Total CSS in the segment).
Q17: Years before longterm debt is due
A: 10 years.
Q18: Impact of increasing accounts payable time
A: Increases available cash by delaying payments to suppliers.
Q19: Percentage of awareness and accessibility lost each round
A: 33% (onethird).
100% Verified Answers
Q1: Maximum plant utilization capacity
A: 180% (achieved via a double shift plus 80% overtime).
Q2: The five market segments in Capsim
A: Traditional, Low End, High End, Performance, and Size.
Q3: Maximum sales budget for diminishing returns
A: $3,000,000 per segment.
Q4: Most direct way to decrease material costs
A: Lowering MTBF or repositioning products closer to the lowerleft of the perceptual map.
Q5: Does the Courier show competitor promo/sales?
A: Yes.
Q6: Segment to refrain from repositioning early
A: Traditional segment.
Q7: Single most important lowend buying criterion
A: Price.
Q8: Two priceinsensitive market segments
A: High End and Performance.
Q9: What promotion budget increases
A: Product awareness.
, Q10: How to decrease product age
A: Repositioning the product via R&D or introducing a new product.
Q11: How to increase product age
A: Doing nothing (age increases naturally over time).
Q12: Budget affecting the segment as a whole
A: Sales budget (affects accessibility).
Q13: Price expectations change rate each round
A: They drop by $0.50 each year.
Q14: Do all segments grow at the same rate?
A: No, each segment grows at its own unique rate.
Q15: Aiming for zero ending inventory
A: No, you should aim to have about one month's worth (78%) left over to prevent
stockouts.
Q16: Customer survey forecasting formula
A: Segment potential sales × (Your CSS / Total CSS in the segment).
Q17: Years before longterm debt is due
A: 10 years.
Q18: Impact of increasing accounts payable time
A: Increases available cash by delaying payments to suppliers.
Q19: Percentage of awareness and accessibility lost each round
A: 33% (onethird).
