ITM410 - TB Chapter 6

Operations Management: Processes and Supply Chains, 10e (Krajewski et al.)
Chapter 6 Capacity Planning

28) Long-term capacity plans deal with:
A) investments in new facilities.
B) workforce size.
C) inventories.
D) overtime budgets.

Answer: A

29) Long-term capacity decisions that confront managers include all of the following except:
A) capital equipment.
B) additional land.
C) buildings.
D) workforce size.

Answer: D

30) 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

31) Input measures include such metrics as:
A) the number of customers served per hour.
B) the number of trucks produced per day.
C) the number of machine hours available.
D) the number of bills processed in a week.

Answer: C

32) 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

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