MGMT 339 Final Exam Questions with
Solved Solutions 2025-2026 Updated.
Long-term capacity planning deals with which of the following factors? - Answer Investment in
new facilities
Waiting-line problems that cannot be studied with waiting-line models must be analyzed with
which analytical tool? - Answer simulation
Anna's landscaping business has a capacity gap; which alternative can best be described as
"simply to do nothing"? - Answer Base-case strategy
A measure of the reserve capacity a process has to handle in unexpected increases in demand is
the - Answer capacity cushion
Under ideal conditions, a picture frame manufacturing facility can produce 480 frames per day.
Under normal conditions, the company schedules 135 frames per day. Current market
conditions and production strategy have combined to limit production to 120 frames per day.
What is the approximate utilization rate for current capacity? - Answer 89%
Waiting-line models often are used in capacity planning in order to - Answer select an
appropriate capacity cushion for a high customer- contact process
In general, a less capital-intensive industry such as a hotel chain would do well with a utilization
rate of - Answer 60-70%
An expansionist capacity strategy is NOT indicated when - Answer expansion will lead to
economies of scale
Chang and Chang observe that the competition is increasing the size of its warehouses. They
have decided to do the same. They are following _______ strategy. - Answer a follow the
leader
A diseconomy of scale is realized when - Answer the average cost per unit increases as the
facility's size increases.
, Capacity planning requires demand forecasts for an extended period of time. Forecast accuracy
tends to _______ as the forecasting horizon _______. - Answer decline ; lengthens
Jorge Ortega has been using a 10 percent capacity cushion, servicing 60 customers an hour.
There is a good deal of customer contact, and customer service has been poor due to random
fluctuations in demand. If he increases his capacity cushion to 20%, what will be the new
capacity requirement? - Answer 75
Which of the following is a principal reason that explains why economies of scale can drive costs
down when output increases? - Answer A.
costs of purchased materials are cut
Your answer is not correct.
B.
process advantages are found
C.
construction costs are reduced
D.
All of the above.
Input measures of capacity are preferred when there - Answer are flexible flow processes
Using input measures of capacity is least appropriate in which of the following situations? -
Answer product variety and process divergence is low
A truck stop along the interstate uses fuel pumps that operate at 6 gallons per minute. The
service volume is 200 trucks per day and the truck stop operates 24/7/365. It has been
determined that the average purchase is 90 gallons and effective utilization is given as 60%.
How many pumps should be available to accommodate this business volume? - Answer 4
Which tool deals more formally with demand uncertainty and variability of capacity decisions? -
Answer waiting-line models
What is the name of the product mix decision method that produces the products with the
highest contribution margins and ignores fixed costs? - Answer the traditional method
Solved Solutions 2025-2026 Updated.
Long-term capacity planning deals with which of the following factors? - Answer Investment in
new facilities
Waiting-line problems that cannot be studied with waiting-line models must be analyzed with
which analytical tool? - Answer simulation
Anna's landscaping business has a capacity gap; which alternative can best be described as
"simply to do nothing"? - Answer Base-case strategy
A measure of the reserve capacity a process has to handle in unexpected increases in demand is
the - Answer capacity cushion
Under ideal conditions, a picture frame manufacturing facility can produce 480 frames per day.
Under normal conditions, the company schedules 135 frames per day. Current market
conditions and production strategy have combined to limit production to 120 frames per day.
What is the approximate utilization rate for current capacity? - Answer 89%
Waiting-line models often are used in capacity planning in order to - Answer select an
appropriate capacity cushion for a high customer- contact process
In general, a less capital-intensive industry such as a hotel chain would do well with a utilization
rate of - Answer 60-70%
An expansionist capacity strategy is NOT indicated when - Answer expansion will lead to
economies of scale
Chang and Chang observe that the competition is increasing the size of its warehouses. They
have decided to do the same. They are following _______ strategy. - Answer a follow the
leader
A diseconomy of scale is realized when - Answer the average cost per unit increases as the
facility's size increases.
, Capacity planning requires demand forecasts for an extended period of time. Forecast accuracy
tends to _______ as the forecasting horizon _______. - Answer decline ; lengthens
Jorge Ortega has been using a 10 percent capacity cushion, servicing 60 customers an hour.
There is a good deal of customer contact, and customer service has been poor due to random
fluctuations in demand. If he increases his capacity cushion to 20%, what will be the new
capacity requirement? - Answer 75
Which of the following is a principal reason that explains why economies of scale can drive costs
down when output increases? - Answer A.
costs of purchased materials are cut
Your answer is not correct.
B.
process advantages are found
C.
construction costs are reduced
D.
All of the above.
Input measures of capacity are preferred when there - Answer are flexible flow processes
Using input measures of capacity is least appropriate in which of the following situations? -
Answer product variety and process divergence is low
A truck stop along the interstate uses fuel pumps that operate at 6 gallons per minute. The
service volume is 200 trucks per day and the truck stop operates 24/7/365. It has been
determined that the average purchase is 90 gallons and effective utilization is given as 60%.
How many pumps should be available to accommodate this business volume? - Answer 4
Which tool deals more formally with demand uncertainty and variability of capacity decisions? -
Answer waiting-line models
What is the name of the product mix decision method that produces the products with the
highest contribution margins and ignores fixed costs? - Answer the traditional method
