ISDS Exam 2 Chapter S7 Questions and
Answers 100% Solved | Graded A+
What is sometimes referred to as rated capacity? - ✔✔d. expected output
Effective capacity is the - ✔✔b. capacity a firm expects to achieve given the
current operating constraints
Which of the following represents an aggressive approach to demand
management in the service
sector when demand and capacity are not particularly well matched? -
✔✔a. inexpensive rates for weekend phone calls
Which of the following represents a common way to manage capacity in the
service sector? - ✔✔c. changes in staffing levels
If demand exceeds capacity at a new facility, an organization can use
which of the following to move demand to an existing facility? - ✔✔a.
aggressive marketing
Adding a complementary product to what is currently being produced is a
demand management
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strategy used when - ✔✔c. the existing product has seasonal or cyclical
demand
An organization whose capacity is on that portion of the average unit cost
curve that falls as output
rises - ✔✔a. has a facility that is below optimum operating level and should
build a larger facility
Of the four approaches to capacity expansion, the approach that
"straddles" demand
a. uses incremental expansion
b. uses one-step expansion
c. at some times leads demand, and at other times lags
d. works best when demand is not growing but is stable
e. Choices a and c are both correct. - ✔✔e. Choices a and c are both
correct.
What are the four approaches to capacity expansion? - ✔✔a. average
capacity with incremental expansion
b. lead demand with incremental expansion
c. lag demand with incremental expansion
d. lead demand with one-step expansion