OPMA 3306 EXAM 2 | CHAPTER 4, 6, 8| 2026 |
GUARANTEED PASS
Capacity has a time dimensional aspect for operations and supply chain management.
A manager must consider capacity planning in how many time durations? - Answers -
Three time durations
Long range:
_____ than _____ _____. - Answers -Greater
one year
Intermediate range
The _____ _____ to _____ _____. - Answers -next 6
18 months
Short range
_____ than _____ _____. - Answers -Less
1 month
Strategic capacity planning involves:
c_____ a_____.
i_____ the f_____'s c_____ s_____.
_____ p_____. - Answers -capital-intensive acquisitions.
impacting
firm's cost structure.
long-term production.
The output level where average unit cost is minimized is known as the - Answers -best
operating level.
The equation, Capacity used / Best operating level, represents ____________. -
Answers -capacity utilization rate
In operations management, capacity must be stated relative to - Answers -a period of
time.
Which of the following contribute to the development of economies of scale?
Higher capacity equipment typically has lower per unit costs.
Higher capacity equipment often requires more maintenance support.
Higher production volumes can often be achieved without additional support personnel.
,Keeping high capacity equipment busy may require price discounting. - Answers -
Higher capacity equipment typically has lower per unit costs.
Higher production volumes can often be achieved without additional support personnel.
Planning for the next week is referred to as - Answers -short range capacity
management.
True or false: When plant production becomes too small, diseconomies of scale may
occur. - Answers -False
The ability to hold, receive, store, or accommodate describes - Answers -capacity.
______ is the output that a system is capable of achieving over a period of time. -
Answers -Capacity
A facility designed around a limited set of production objectives is called a - Answers -
focused factory.
The capacity utilization rate is expressed as a - Answers -percentage
Capacity flexibility is achieved by using
______ ______
______ ______
______ ______ - Answers -flexible workers.
flexible processes.
flexible plants.
The idea that as a plant volume increases, the average cost per unit drops is known as -
Answers -economies of scale.
True or false: Economies of scope can be achieved when a company focuses on a
single product. - Answers -False
The two types of costs to consider when adding capacity are
the c_____ of u_____ _____ f_____.
the c_____ of u_____ _____ i_____. - Answers -cost
upgrading too frequently.
cost
upgrading too infrequently.
True or false: When the size of a plant becomes too large, diseconomies of scale
become a problem. - Answers -True
,A production manager may p_____ b_____ i_____ to prevent bottlenecks and ensure
employees always have work to do. - Answers -produce buffer inventories
Which of the following can be used to operationalize the focused factory concept? -
Answers -Plant within a plant
What are the two strategies an organization can use when adding in-house capacity is
not cost effective? - Answers -Outsourcing or shared capacity.
The ability to rapidly increase or decrease production levels, or shift from one product or
service to another is known as - Answers -capacity flexibility.
Capacity in excess of expected demand is known as - Answers -capacity cushion
The idea that multiple products can be combined and produced at one facility at a lower
cost than they can be produced separately is known as - Answers -economies of
scope.
When building a decision tree, one should use squares to represent which of the
following? - Answers -Decision points
Which of the following are important issues to consider when changing capacity?
Ensuring economies of scale
Maintaining system balance
Use of external capacity
Frequency of additions or reductions - Answers -Maintaining system balance
Use of external capacity
Frequency of additions or reductions
Which of the following is not one of the differences between planning capacity for
services versus manufacturing?
Location
Time
Cost
Volatility of demand - Answers -Cost
What are some temporary measures to correct supply chain system imbalance?
s______ e______ for o______.
l______ e______ to ______ t______.
s______ for ______ c______. - Answers -Scheduling employees
overtime.
Leasing equipment
increase throughput.
, Subcontracting
increased capacity.
True or false: The presence of the customer in a service delivery system increases the
volatility of demand. - Answers -True
A computer manufacturer has a large order and decides to purchase extra hard drives
that will be required from another company at a lower cost rather than increase their
capacity; this is an example of? - Answers -Outsourcing
Which of the following type of service organization should aim for low utilization
because of the high level of uncertainty?
Hospitals
Airports
Amusement parks
Restaurants - Answers -Hospitals
List the steps, from first to last, required to determine capacity requirement.
f_____ to p_____ s_____
c_____ e_____ and l_____ r_____
p_____ e_____ and l_____ a_____ - Answers -Forecast
predict sales
Calculate equipment
labor requirements
Project equipment
labor availabilities
A schematic model of the sequence of steps in a problem and the conditions and
consequences of each step is called a - Answers -decision tree.
True or false: Service capacity is subject to less volatile demand fluctuations. - Answers
-False
Which of the following are reasons for the volatility of demand on a service delivery
system?
Intangibility
Customer behavior
Customer interaction
Customer choice - Answers -Intangibility
Customer behavior
Customer interaction
GUARANTEED PASS
Capacity has a time dimensional aspect for operations and supply chain management.
A manager must consider capacity planning in how many time durations? - Answers -
Three time durations
Long range:
_____ than _____ _____. - Answers -Greater
one year
Intermediate range
The _____ _____ to _____ _____. - Answers -next 6
18 months
Short range
_____ than _____ _____. - Answers -Less
1 month
Strategic capacity planning involves:
c_____ a_____.
i_____ the f_____'s c_____ s_____.
_____ p_____. - Answers -capital-intensive acquisitions.
impacting
firm's cost structure.
long-term production.
The output level where average unit cost is minimized is known as the - Answers -best
operating level.
The equation, Capacity used / Best operating level, represents ____________. -
Answers -capacity utilization rate
In operations management, capacity must be stated relative to - Answers -a period of
time.
Which of the following contribute to the development of economies of scale?
Higher capacity equipment typically has lower per unit costs.
Higher capacity equipment often requires more maintenance support.
Higher production volumes can often be achieved without additional support personnel.
,Keeping high capacity equipment busy may require price discounting. - Answers -
Higher capacity equipment typically has lower per unit costs.
Higher production volumes can often be achieved without additional support personnel.
Planning for the next week is referred to as - Answers -short range capacity
management.
True or false: When plant production becomes too small, diseconomies of scale may
occur. - Answers -False
The ability to hold, receive, store, or accommodate describes - Answers -capacity.
______ is the output that a system is capable of achieving over a period of time. -
Answers -Capacity
A facility designed around a limited set of production objectives is called a - Answers -
focused factory.
The capacity utilization rate is expressed as a - Answers -percentage
Capacity flexibility is achieved by using
______ ______
______ ______
______ ______ - Answers -flexible workers.
flexible processes.
flexible plants.
The idea that as a plant volume increases, the average cost per unit drops is known as -
Answers -economies of scale.
True or false: Economies of scope can be achieved when a company focuses on a
single product. - Answers -False
The two types of costs to consider when adding capacity are
the c_____ of u_____ _____ f_____.
the c_____ of u_____ _____ i_____. - Answers -cost
upgrading too frequently.
cost
upgrading too infrequently.
True or false: When the size of a plant becomes too large, diseconomies of scale
become a problem. - Answers -True
,A production manager may p_____ b_____ i_____ to prevent bottlenecks and ensure
employees always have work to do. - Answers -produce buffer inventories
Which of the following can be used to operationalize the focused factory concept? -
Answers -Plant within a plant
What are the two strategies an organization can use when adding in-house capacity is
not cost effective? - Answers -Outsourcing or shared capacity.
The ability to rapidly increase or decrease production levels, or shift from one product or
service to another is known as - Answers -capacity flexibility.
Capacity in excess of expected demand is known as - Answers -capacity cushion
The idea that multiple products can be combined and produced at one facility at a lower
cost than they can be produced separately is known as - Answers -economies of
scope.
When building a decision tree, one should use squares to represent which of the
following? - Answers -Decision points
Which of the following are important issues to consider when changing capacity?
Ensuring economies of scale
Maintaining system balance
Use of external capacity
Frequency of additions or reductions - Answers -Maintaining system balance
Use of external capacity
Frequency of additions or reductions
Which of the following is not one of the differences between planning capacity for
services versus manufacturing?
Location
Time
Cost
Volatility of demand - Answers -Cost
What are some temporary measures to correct supply chain system imbalance?
s______ e______ for o______.
l______ e______ to ______ t______.
s______ for ______ c______. - Answers -Scheduling employees
overtime.
Leasing equipment
increase throughput.
, Subcontracting
increased capacity.
True or false: The presence of the customer in a service delivery system increases the
volatility of demand. - Answers -True
A computer manufacturer has a large order and decides to purchase extra hard drives
that will be required from another company at a lower cost rather than increase their
capacity; this is an example of? - Answers -Outsourcing
Which of the following type of service organization should aim for low utilization
because of the high level of uncertainty?
Hospitals
Airports
Amusement parks
Restaurants - Answers -Hospitals
List the steps, from first to last, required to determine capacity requirement.
f_____ to p_____ s_____
c_____ e_____ and l_____ r_____
p_____ e_____ and l_____ a_____ - Answers -Forecast
predict sales
Calculate equipment
labor requirements
Project equipment
labor availabilities
A schematic model of the sequence of steps in a problem and the conditions and
consequences of each step is called a - Answers -decision tree.
True or false: Service capacity is subject to less volatile demand fluctuations. - Answers
-False
Which of the following are reasons for the volatility of demand on a service delivery
system?
Intangibility
Customer behavior
Customer interaction
Customer choice - Answers -Intangibility
Customer behavior
Customer interaction
