Operations Management Processes And Supply Chains 12th Edition – Test Bank

Operations Management Processes And Supply Chains 12th Edition – Test Bank

Operations Management: Processes and Supply Chains, 12e (Krajewski)

Chapter 4  Capacity Planning

4.1  Planning Long-Term Capacity

1) Capacity is the maximum rate of output of a process.

Answer:  TRUE

Difficulty:  Easy

Keywords:  capacity, maximum output rate

Learning Outcome:  Explain options for managing bottlenecks and managing capacity in service and manufacturing processes

AACSB:  Application of Knowledge

Learning Obj.:  Define long-term capacity and its relationship with economies and diseconomies of scale.

2) Capacity can be expressed by output or input measures.

Answer:  TRUE

Difficulty:  Easy

Keywords:  capacity, input measures, output measures

Learning Outcome:  Explain options for managing bottlenecks and managing capacity in service and manufacturing processes

AACSB:  Application of Knowledge

Learning Obj.:  Define long-term capacity and its relationship with economies and diseconomies of scale.

3) Input measures of capacity are inherently more accurate than output measures of capacity.

Answer:  FALSE

Difficulty:  Moderate

Keywords:  input measures, output measures, capacity

Learning Outcome:  Explain options for managing bottlenecks and managing capacity in service and manufacturing processes

AACSB:  Application of Knowledge

Learning Obj.:  Define long-term capacity and its relationship with economies and diseconomies of scale.

4) Utilization is the degree to which equipment, space, or labor is currently being used.

Answer:  TRUE

Difficulty:  Easy

Keywords:  utilization, equipment used, space used, labor used

Learning Outcome:  Explain options for managing bottlenecks and managing capacity in service and manufacturing processes

AACSB:  Application of Knowledge

Learning Obj.:  Define long-term capacity and its relationship with economies and diseconomies of scale.

5) One reason economies of scale drive down cost is the spreading of fixed costs.

Answer:  TRUE

Difficulty:  Moderate

Keywords:  economies of scale, fixed cost

Learning Outcome:  Explain options for managing bottlenecks and managing capacity in service and manufacturing processes

AACSB:  Application of Knowledge

Learning Obj.:  Define long-term capacity and its relationship with economies and diseconomies of scale.