OMIS 338 - CHAPTER 10 QUESTIONS &
ANSWERS(GRADED A+)
Which of the following statements about capacity is true?
a. When demand exceeds capacity, it results in idle processes or facilities.
b. Capacity must be at least as large as the average demand to satisfy customers in the
long run.
c. Long-term capacity decisions typically involve adjusting schedules and staffing levels.
d. Short-term capacity decisions usually involve major capital investments. - ANSWER
b. Capacity must be at least as large as the average demand to satisfy customers in the
long run.
Which of the following are often influenced by economies and diseconomies of scale?
a. Bottleneck activities
b. Physical constraints
c. Work orders
d. Capacity decisions - ANSWER d. Capacity decisions
Which of the following statements about diseconomies of scale is true?
a. They occur when the average cost of goods or services decreases.
b. They arise when dissimilar product lines and processes exist in the same facility.
c. They lend support to building large facilities with more capacity.
d. They decrease as the capacity and/or volume of throughput increases. - ANSWER b.
They arise when dissimilar product lines and processes exist in the same facility.
The focused facility argues to "divide and conquer" by adapting smaller, more focused
facilities dedicated to all of the following EXCEPT
a. a certain process design and capability.
b. a few key products.
c. a variety of technologies.
d. particular market segments or customers and associated volumes. - ANSWER c. a
variety of technologies.
The maximum rate of output that can be produced in a period of time under ideal
operating conditions is called
a. realistic capacity.
b. safety capacity.
c. theoretical capacity.
d. effective capacity. - ANSWER c. theoretical capacity.
The capacity cushion can be defined as
a. a constraint that effectively limits the capacity of an entire process.
b. the amount of money generated per time period through actual sales.
ANSWERS(GRADED A+)
Which of the following statements about capacity is true?
a. When demand exceeds capacity, it results in idle processes or facilities.
b. Capacity must be at least as large as the average demand to satisfy customers in the
long run.
c. Long-term capacity decisions typically involve adjusting schedules and staffing levels.
d. Short-term capacity decisions usually involve major capital investments. - ANSWER
b. Capacity must be at least as large as the average demand to satisfy customers in the
long run.
Which of the following are often influenced by economies and diseconomies of scale?
a. Bottleneck activities
b. Physical constraints
c. Work orders
d. Capacity decisions - ANSWER d. Capacity decisions
Which of the following statements about diseconomies of scale is true?
a. They occur when the average cost of goods or services decreases.
b. They arise when dissimilar product lines and processes exist in the same facility.
c. They lend support to building large facilities with more capacity.
d. They decrease as the capacity and/or volume of throughput increases. - ANSWER b.
They arise when dissimilar product lines and processes exist in the same facility.
The focused facility argues to "divide and conquer" by adapting smaller, more focused
facilities dedicated to all of the following EXCEPT
a. a certain process design and capability.
b. a few key products.
c. a variety of technologies.
d. particular market segments or customers and associated volumes. - ANSWER c. a
variety of technologies.
The maximum rate of output that can be produced in a period of time under ideal
operating conditions is called
a. realistic capacity.
b. safety capacity.
c. theoretical capacity.
d. effective capacity. - ANSWER c. theoretical capacity.
The capacity cushion can be defined as
a. a constraint that effectively limits the capacity of an entire process.
b. the amount of money generated per time period through actual sales.
