OPMA 3306 | EXAM 2 | Chapter 4, 6, 8
questions with verified solutions
Capacity has a time dimensional aspect for operations and supply chain
management. A manager must consider capacity planning in how many time
durations? - correct answer ✔✔Three time durations
Long range:
_____ than _____ _____. - correct answer ✔✔Greater
one year
Intermediate range
The _____ _____ to _____ _____. - correct answer ✔✔next 6
18 months
Short range
_____ than _____ _____. - correct answer ✔✔Less
1 month
Strategic capacity planning involves:
c_____ a_____.
i_____ the f_____'s c_____ s_____.
_____ p_____. - correct answer ✔✔capital-intensive acquisitions.
,impacting
firm's cost structure.
long-term production.
The output level where average unit cost is minimized is known as the - correct
answer ✔✔best operating level.
The equation, Capacity used / Best operating level, represents ____________. -
correct answer ✔✔capacity utilization rate
In operations management, capacity must be stated relative to - correct answer
✔✔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. - correct
answer ✔✔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 - correct answer ✔✔short range
capacity management.
,True or false: When plant production becomes too small, diseconomies of scale
may occur. - correct answer ✔✔False
The ability to hold, receive, store, or accommodate describes - correct answer
✔✔capacity.
______ is the output that a system is capable of achieving over a period of time. -
correct answer ✔✔Capacity
A facility designed around a limited set of production objectives is called a -
correct answer ✔✔focused factory.
The capacity utilization rate is expressed as a - correct answer ✔✔percentage
Capacity flexibility is achieved by using
______ ______
______ ______
______ ______ - correct answer ✔✔flexible workers.
flexible processes.
flexible plants.
The idea that as a plant volume increases, the average cost per unit drops is
known as - correct answer ✔✔economies of scale.
, True or false: Economies of scope can be achieved when a company focuses on a
single product. - correct answer ✔✔False
The two types of costs to consider when adding capacity are
the c_____ of u_____ _____ f_____.
the c_____ of u_____ _____ i_____. - correct answer ✔✔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. - correct answer ✔✔True
A production manager may p_____ b_____ i_____ to prevent bottlenecks and
ensure employees always have work to do. - correct answer ✔✔produce buffer
inventories
Which of the following can be used to operationalize the focused factory concept?
- correct answer ✔✔Plant within a plant
What are the two strategies an organization can use when adding in-house
capacity is not cost effective? - correct answer ✔✔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 - correct answer ✔✔capacity flexibility.
questions with verified solutions
Capacity has a time dimensional aspect for operations and supply chain
management. A manager must consider capacity planning in how many time
durations? - correct answer ✔✔Three time durations
Long range:
_____ than _____ _____. - correct answer ✔✔Greater
one year
Intermediate range
The _____ _____ to _____ _____. - correct answer ✔✔next 6
18 months
Short range
_____ than _____ _____. - correct answer ✔✔Less
1 month
Strategic capacity planning involves:
c_____ a_____.
i_____ the f_____'s c_____ s_____.
_____ p_____. - correct answer ✔✔capital-intensive acquisitions.
,impacting
firm's cost structure.
long-term production.
The output level where average unit cost is minimized is known as the - correct
answer ✔✔best operating level.
The equation, Capacity used / Best operating level, represents ____________. -
correct answer ✔✔capacity utilization rate
In operations management, capacity must be stated relative to - correct answer
✔✔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. - correct
answer ✔✔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 - correct answer ✔✔short range
capacity management.
,True or false: When plant production becomes too small, diseconomies of scale
may occur. - correct answer ✔✔False
The ability to hold, receive, store, or accommodate describes - correct answer
✔✔capacity.
______ is the output that a system is capable of achieving over a period of time. -
correct answer ✔✔Capacity
A facility designed around a limited set of production objectives is called a -
correct answer ✔✔focused factory.
The capacity utilization rate is expressed as a - correct answer ✔✔percentage
Capacity flexibility is achieved by using
______ ______
______ ______
______ ______ - correct answer ✔✔flexible workers.
flexible processes.
flexible plants.
The idea that as a plant volume increases, the average cost per unit drops is
known as - correct answer ✔✔economies of scale.
, True or false: Economies of scope can be achieved when a company focuses on a
single product. - correct answer ✔✔False
The two types of costs to consider when adding capacity are
the c_____ of u_____ _____ f_____.
the c_____ of u_____ _____ i_____. - correct answer ✔✔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. - correct answer ✔✔True
A production manager may p_____ b_____ i_____ to prevent bottlenecks and
ensure employees always have work to do. - correct answer ✔✔produce buffer
inventories
Which of the following can be used to operationalize the focused factory concept?
- correct answer ✔✔Plant within a plant
What are the two strategies an organization can use when adding in-house
capacity is not cost effective? - correct answer ✔✔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 - correct answer ✔✔capacity flexibility.
