chapter 4 scma320
t - (correct Answer) - Capacity is the maximum rate of output of a process.
t - (correct Answer) - Capacity can be expressed by output or input measures.
f - (correct Answer) - Input measures of capacity are inherently more accurate than output measures of
capacity.
t - (correct Answer) - Utilization is the degree to which equipment, space, or labor is currently being used
t - (correct Answer) - One reason economies of scale drive down cost is the spreading of fixed costs.
f - (correct Answer) - Diseconomies of scale is a concept that states that the average unit cost of a service
or good can be reduced by increasing its output rate.
a - (correct Answer) - Long-term capacity plans deal with:
A) investments in new facilities.
B) workforce size.
C) inventories.
D) overtime budgets.
d - (correct Answer) - Long-term capacity decisions that confront managers include all of the following
EXCEPT:
A) capital equipment.
B) additional land.
C) buildings.
D) workforce size.
c - (correct Answer) - Regarding the measurement of capacity, when a firm provides a relatively small
number of standardized products and services:
A) capacity cannot be determined reliably.
B) input measures are typically used.
C) output measures are typically used.
, D) utilization becomes equal to capacity.
a - (correct Answer) - One of the many steps in the production of toothpaste is to screw the caps on the
tubes, which is still a manual process, performed by one man, Mr. Bucket. Which statement about this
situation is BEST?
A) This is most appropriate for an output measure of capacity.
B) This is most appropriate for an input measure of capacity.
C) Utilization of the worker at this process step cannot be measures as it is a manual process.
D) In this case, the capacity of this step is not the maximum rate of output.
c - (correct Answer) - Input measures include such metrics as:
A) the number of customers served per hour.
B) the number of trucks produced per day.
C) the number of machine hours available.
D) the number of bills processed in a week.
c - (correct Answer) - The degree to which equipment, space, or labor is being used is commonly referred
to as:
A) capacity.
B) output.
C) utilization.
D) cushion.
a - (correct Answer) - Although the fire marshal had declared the capacity of the classroom at 45
students, the introduction to operations management class was so popular, the average attendance was
55 students, literally standing room only. Shouts of "You the man!" accompanied the successful solution
of problems such as this: What is the utilization of the operations management professor?
A) 122%
B) 100%
C) 55 students
t - (correct Answer) - Capacity is the maximum rate of output of a process.
t - (correct Answer) - Capacity can be expressed by output or input measures.
f - (correct Answer) - Input measures of capacity are inherently more accurate than output measures of
capacity.
t - (correct Answer) - Utilization is the degree to which equipment, space, or labor is currently being used
t - (correct Answer) - One reason economies of scale drive down cost is the spreading of fixed costs.
f - (correct Answer) - Diseconomies of scale is a concept that states that the average unit cost of a service
or good can be reduced by increasing its output rate.
a - (correct Answer) - Long-term capacity plans deal with:
A) investments in new facilities.
B) workforce size.
C) inventories.
D) overtime budgets.
d - (correct Answer) - Long-term capacity decisions that confront managers include all of the following
EXCEPT:
A) capital equipment.
B) additional land.
C) buildings.
D) workforce size.
c - (correct Answer) - Regarding the measurement of capacity, when a firm provides a relatively small
number of standardized products and services:
A) capacity cannot be determined reliably.
B) input measures are typically used.
C) output measures are typically used.
, D) utilization becomes equal to capacity.
a - (correct Answer) - One of the many steps in the production of toothpaste is to screw the caps on the
tubes, which is still a manual process, performed by one man, Mr. Bucket. Which statement about this
situation is BEST?
A) This is most appropriate for an output measure of capacity.
B) This is most appropriate for an input measure of capacity.
C) Utilization of the worker at this process step cannot be measures as it is a manual process.
D) In this case, the capacity of this step is not the maximum rate of output.
c - (correct Answer) - Input measures include such metrics as:
A) the number of customers served per hour.
B) the number of trucks produced per day.
C) the number of machine hours available.
D) the number of bills processed in a week.
c - (correct Answer) - The degree to which equipment, space, or labor is being used is commonly referred
to as:
A) capacity.
B) output.
C) utilization.
D) cushion.
a - (correct Answer) - Although the fire marshal had declared the capacity of the classroom at 45
students, the introduction to operations management class was so popular, the average attendance was
55 students, literally standing room only. Shouts of "You the man!" accompanied the successful solution
of problems such as this: What is the utilization of the operations management professor?
A) 122%
B) 100%
C) 55 students
