C215 Capacity Planning, Location Analysis Chs 9,3,10
Question and answers 100% correct 2026
1. If capacity is excessive, a company may have
to decide how to use a
. par-tially empty
facility
*raise prices
*back-order
*decide how to use a partially empty facility
*outsource
2. Which of the following is not a factor in
proximity to suppliers
capacity plan-ning?
*proximity to suppliers
*approach used to measure capacity
*identify the best operating level
*economies of scale
3. The ratio of actual output rate to capacity is
utilization
.
*throughput
*effectiveness
*productivity
*utilization
4. Last month TMJG Co. started producing a new product a large facility
called Thingamajigs from its new plant. Sales
were quite good for the first couple of weeks.
Unfortunate-ly, a technological innovation was
then announced by a competitor. This
innovation will almost completely eliminate the
demand for Thingamajigs. As a result, TMJG
has decided to shut down and dismantle the
plant next week. The average cost per unit will
1/
23
,be highest if the plant was .
*in the right location
*a large facility
2/
23
, C215 Capacity Planning, Location Analysis Chs 9,3,10
*a medium facility
*a small facility
5.Long-term capacity requirements are identified on the forecasts of
future de-
basis of .mand
*the current trend of the economy *only
*forecasts of future demand qualitative
*demographic factors factors
*the expected lifetime of the facility
6. Service organizations such as restaurants,
movie the-aters, and banks focus on locating
near .
*intersections
*their customers
*potential workers
*roads
7. In facility location zoning restrictions, soil
conditions, and access roads for trucks are .
*quality of life issues
*community considerations
*site considerations
*cultural considerations
8. When evaluating location alternatives the firm
should look at
*both qualitative and quantitative factors
*decision support models only
*only quantitative factors
3/
23
Question and answers 100% correct 2026
1. If capacity is excessive, a company may have
to decide how to use a
. par-tially empty
facility
*raise prices
*back-order
*decide how to use a partially empty facility
*outsource
2. Which of the following is not a factor in
proximity to suppliers
capacity plan-ning?
*proximity to suppliers
*approach used to measure capacity
*identify the best operating level
*economies of scale
3. The ratio of actual output rate to capacity is
utilization
.
*throughput
*effectiveness
*productivity
*utilization
4. Last month TMJG Co. started producing a new product a large facility
called Thingamajigs from its new plant. Sales
were quite good for the first couple of weeks.
Unfortunate-ly, a technological innovation was
then announced by a competitor. This
innovation will almost completely eliminate the
demand for Thingamajigs. As a result, TMJG
has decided to shut down and dismantle the
plant next week. The average cost per unit will
1/
23
,be highest if the plant was .
*in the right location
*a large facility
2/
23
, C215 Capacity Planning, Location Analysis Chs 9,3,10
*a medium facility
*a small facility
5.Long-term capacity requirements are identified on the forecasts of
future de-
basis of .mand
*the current trend of the economy *only
*forecasts of future demand qualitative
*demographic factors factors
*the expected lifetime of the facility
6. Service organizations such as restaurants,
movie the-aters, and banks focus on locating
near .
*intersections
*their customers
*potential workers
*roads
7. In facility location zoning restrictions, soil
conditions, and access roads for trucks are .
*quality of life issues
*community considerations
*site considerations
*cultural considerations
8. When evaluating location alternatives the firm
should look at
*both qualitative and quantitative factors
*decision support models only
*only quantitative factors
3/
23
