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Capacity Planning

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Question 1
Free
Multiple Choice

Facilities decisions

Choose correct answer/s
A

are medium-range capacity decisions.

B

should consider one of the five crucial questions of how much, how large, when, where, and what type.

C

constrain all other capacity decisions.

D

require planning for one year only.

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Question 2
Free
Multiple Choice

Which of the following functions is NOT affected directly by the facilities decision?

Choose correct answer/s
A

Operations.

B

Marketing.

C

Finance.

D

All of the above are directly affected.

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Question 3
Free
Multiple Choice

Why is it dangerous to justify capacity expansion using economies of scale?

Choose correct answer/s
A

It is far too specific to use as a basis for capacity decisions.

B

Volume, capacity, and process considerations are looked at individually.

C

The common notion that unit costs decline for larger facilities due to size is not always accurate.

D

It requires consideration of quality, dependability, and flexibility.

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Question 4
Free
Multiple Choice

In aggregate planning,

Choose correct answer/s
A

the concern is over a long-range planning horizon.

B

output levels are set in the face of certain demand.

C

"aggregate" implies that planning is done for a single overall measure of output or at most a few products.

D

firms should never consider overtime, hiring, firing, or subcontracting.

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Question 5
Free
Multiple Choice

Aggregate planning differs from scheduling in that

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A

the former refers to the long range and the latter refers to the short range.

B

the former is concerned with allocating available resources and the latter with the acquisition of resources.

C

the former refers to the long range and the latter refers to the medium range.

D

the former is concerned with the acquisition of resources and the latter with allocating available resources.

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Question 6
Multiple Choice

The aggregate planning problem

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A
should consider only supply management options.
B
affects only marketing and production, but human resources are not involved in decisions.
C
should consider only demand management options.
D
needs to consider multiple trade-offs such as customer service level, inventory levels, labor force stability, and costs.
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Question 7
Multiple Choice

Which of the following is NOT a factor affecting the elements of a facilities strategy?

Choose correct answer/s
A
Cost of facilities.
B
Likely behavior of competitors.
C
Business strategy.
D
Whether the company uses make-to-stock or assemble-to-order.
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Question 8
Multiple Choice

The type of strategy used with respect to the amount of capacity cushion when "the cost or consequence of running out is approximately in balance with the cost of excess capacity" is called:

Choose correct answer/s
A
small cushion.
B
large cushion.
C
moderate cushion.
D
none of the above.
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Question 9
Multiple Choice

The most popular type of facility used by Fortune 500 companies is

Choose correct answer/s
A
product-focused.
B
process-focused.
C
market-focused.
D
general-purpose.
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Question 10
Multiple Choice

Which of the following statements is true about facilities decisions?

Choose correct answer/s
A
They are generally short-range.
B
They are not critical because they determine only future availability of output.
C
They involve all organizational units and are often made at the highest corporate level.
D
They are simple and easy to analyze.
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Question 11
Multiple Choice

Which of the following statement(s)correctly describes aggregate planning?

Choose correct answer/s
A
Aggregate planning is concerned with matching supply and demand of output.
B
Aggregate planning determines not only the output levels planned but also the appropriate resource mix to be used.
C
The aim of aggregate planning is to set overall output levels for the medium-range future.
D
All of the above.
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Question 12
Multiple Choice

One option for altering the pattern of demand through aggregate planning is

Choose correct answer/s
A
using overtime.
B
carrying inventory.
C
subcontracting.
D
pricing.
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Question 13
Multiple Choice

Which of the following is NOT true about aggregate planning in service organizations?

Choose correct answer/s
A
A time horizon of 12 months, on average, is used.
B
Both supply and demand variables can be changed.
C
Inventory and capacity trade-offs are required.
D
Facilities are considered fixed.
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Question 14
Multiple Choice

Aggregate planning costs do NOT include

Choose correct answer/s
A
hiring and layoff costs.
B
part-time labor costs.
C
subcontracting costs.
D
inventory ordering costs.
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Question 15
Multiple Choice

Which of the following represents the hierarchy of decisions concerning the capacity of operations ranging from long-term to short-term?

Choose correct answer/s
A
Facility planning to aggregate planning to scheduling, respectively.
B
Aggregate planning to scheduling to facility planning, respectively.
C
Scheduling to facility planning to aggregate planning, respectively.
D
Aggregate planning to facility planning to scheduling, respectively.
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Question 16
Multiple Choice

Facility planning entails asking crucial questions,including all of the following EXCEPT

Choose correct answer/s
A
How much total capacity is needed?
B
How much capacity does the competition have?
C
Where should facilities be located?
D
When is the capacity needed?
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Question 17
Multiple Choice

Effective capacity is

Choose correct answer/s
A
also called theoretical capacity.
B
base capacity plus time for maintenance, breaks, and absenteeism.
C
the amount of capacity that can be used in planning for actual output.
D
all of the above.
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Question 18
Multiple Choice

Five primary factors were listed for consideration when making facility-planning decisions.Which of the following is NOT one of those factors?

Choose correct answer/s
A
Expected future demand.
B
Global concerns.
C
Purchased materials.
D
Expected competitive moves.
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Question 19
Multiple Choice

There are four basic types of facility choices.Which of the following statements concerning facility choice is NOT true?

Choose correct answer/s
A
Process-focused facilities generally have one technology, or at most two, and usually produce components or parts that are shipped to other facilities for further processing or assembly.
B
Market-focused facilities are typically located in the markets they serve, commonly serving local customers, and are frequently service firms.
C
Demand-focused facilities are quickly constructed and have the ability to serve global markets with fast order response times as warranted by the nature of customer demand.
D
General-purpose facilities are commonly used by smaller companies and may produce several types of products and use several different processes.
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Question 20
Multiple Choice

Correctly complete the following sentence.Aggregate planning typically

Choose correct answer/s
A
entails a planning horizon of about 12 months.
B
is an activity of matching supply with demand.
C
is done for a single, or a few, overall measures of output.
D
has all of the above features.
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