Operations Management Processes and Supply Chains 11th Edition Test Bank
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Operations Management,
11e (Krajewski et al.)
Chapter 4: Capacity
Planning
4.1 Planning
Long-Term Capacity
1) Capacity is the
maximum rate of output of a process.
Answer: TRUE
Reference:
Planning Long-Term Capacity
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
2) Capacity can be
expressed by output or input measures.
Answer: TRUE
Reference:
Planning Long-Term Capacity
Difficulty:
Moderate
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
3) Input measures of
capacity are inherently more accurate than output measures of capacity.
Answer: FALSE
Reference:
Planning Long-Term Capacity
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
4) Utilization is the
degree to which equipment, space, or labor is currently being used.
Answer: TRUE
Reference:
Planning Long-Term Capacity
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
5) One reason
economies of scale drive down cost is the spreading of fixed costs.
Answer: TRUE
Reference: Planning
Long-Term Capacity
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
6) 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.
Answer: FALSE
Reference:
Planning Long-Term Capacity
Difficulty: Easy
Keywords:
diseconomies of scale, average unit cost, output rate
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Application of Knowledge
7) Long-term capacity
plans deal with:
1.
A) investments in new
facilities.
2.
B) workforce size.
3.
C) inventories.
4.
D) overtime budgets.
Answer: A
Reference:
Planning Long-Term Capacity
Difficulty:
Moderate
Keywords:
long-term capacity, new facilities
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Application of Knowledge
8) Long-term capacity
decisions that confront managers include all of the following EXCEPT:
1.
A) capital equipment.
2.
B) additional land.
3.
C) buildings.
4.
D) workforce size.
Answer: D
Reference:
Planning Long-Term Capacity
Difficulty:
Moderate
Keywords:
long-term capacity
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Application of Knowledge
9) Regarding the
measurement of capacity, when a firm provides a relatively small number of
standardized products and services:
1. A) capacity cannot be determined reliably.
2. B) input measures are typically used.
3. C) output measures are typically used.
4. D) utilization becomes equal to capacity.
Answer: C
Reference:
Planning Long-Term Capacity
Difficulty:
Moderate
Keywords: output
measure, capacity
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Application of Knowledge
10) 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?
1.
A) This is most
appropriate for an output measure of capacity.
2.
B) This is most
appropriate for an input measure of capacity.
3.
C) Utilization of the
worker at this process step cannot be measures as it is a manual process.
4.
D) In this case, the
capacity of this step is not the maximum rate of output.
Answer: A
Reference:
Planning Long-Term Capacity
Difficulty:
Moderate
Keywords:
capacity, maximum output rate
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Application of Knowledge
11) Input measures
include such metrics as:
1.
A) the number of
customers served per hour.
2.
B) the number of
trucks produced per day.
3.
C) the number of
machine hours available.
4.
D) the number of bills
processed in a week.
Answer: C
Reference:
Planning Long-Term Capacity
Difficulty:
Moderate
Keywords: input
measure, capacity
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Application of Knowledge
12) The degree to
which equipment, space, or labor is being used is commonly referred to as:
1.
A) capacity.
2.
B) output.
3.
C) utilization.
4.
D) cushion.
Answer: C
Reference:
Planning Long-Term Capacity
Difficulty:
Moderate
Keywords:
utilization, capacity
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Application of Knowledge
13) 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?
1.
A) 122%
2.
B) 100%
3.
C) 55 students
4.
D) 45 students
Answer: A
Reference:
Planning Long-Term Capacity
Difficulty: Easy
Keywords:
utilization, capacity
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Analytical Thinking
14) Although the fire
marshal had declared the capacity of the classroom at 55 students, the introduction
to operations management class was so popular, the average attendance was 75
students, literally standing room only. Squeals of excitement and the
occasional burning of an overturned car accompanied the successful solution of
problems such as this: What is the utilization of the operations management
professor?
1.
A) 100%
2.
B) 136%
3.
C) 75
4.
D) 55
Answer: B
Reference:
Planning Long-Term Capacity
Difficulty: Easy
Keywords:
utilization, capacity
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Analytical Thinking
15) The test bank
author abandoned his teaching duties when he was in the zone working on a test
bank. Normally scheduled to teach a nine hour load during the semester, he
generally made his way to one three hour class a week, one where his students
could propose devious problems that were sure to confound generations of test
takers. What is the test bank author’s utilization for his teaching duties?
1. A) three hours
2. B) nine hours
3. C) 33%
4. D) 300%
Answer: C
Reference:
Planning Long-Term Capacity
Difficulty:
Moderate
Keywords:
utilization, capacity
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Analytical Thinking
16) A manufacturing
plant is capable of producing 10 tons of product per day when it runs three
shifts with no breakdowns and plenty of raw materials. Over the past week, the
plant has produced an average of 7.3 tons per day because the third shift has
devoted much of their time to preventive maintenance. What is the utilization
of the plant?
1. A) 10 tons/day
2. B) 7.3 tons/day
3. C) 137%
4. D) 73%
Answer: D
Reference:
Planning Long-Term Capacity
Difficulty:
Moderate
Keywords:
utilization, capacity
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Analytical Thinking
17) A manufacturing
plant is capable of producing 10 tons of product per day when it runs three
shifts with no breakdowns and plenty of raw materials. Over the past week, the
plant has produced an average of 7.3 tons per day since the third shift has
devoted much of their time to preventive maintenance. What is the capacity of
the plant?
1. A) 10 tons/day
2. B) 7.3 tons/day
3. C) 73%
4. D) 137%
Answer: A
Reference:
Planning Long-Term Capacity
Difficulty:
Moderate
Keywords:
utilization, capacity
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Analytical Thinking
18) The transition
from economies of scale to diseconomies of scale:
1. A) is more likely to occur in a service operation.
2. B) is more likely to occur in a manufacturing operation.
3. C) is more likely to occur when utilization is low.
4. D) contains the point at which average unit costs are at their
lowest.
Answer: D
Reference:
Planning Long-Term Capacity
Difficulty:
Moderate
Keywords:
economies of scale, diseconomies of scale
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Application of Knowledge
19) ________ is the
maximum rate of output for a process.
Answer: Capacity
Reference:
Planning Long-Term Capacity
Difficulty: Easy
Keywords:
capacity, maximum rate of output
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Application of Knowledge
20) Capacity decisions
should be linked closely to ________ and ________ throughout the organization.
Answer:
processes, supply chains
Reference:
Planning Long-Term Capacity
Difficulty:
Moderate
Keywords:
capacity decision, strategy, process, supply chains
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Application of Knowledge
21) ________ is the
degree to which equipment, space, or labor is currently being used.
Answer:
Utilization
Reference: Planning
Long-Term Capacity
Difficulty: Easy
Keywords:
utilization, use of equipment, space, labor
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Application of Knowledge
22) The ________
concept states that the average unit cost of a service or good can be reduced
by increasing its output rate.
Answer:
economies of scale
Reference:
Planning Long-Term Capacity
Difficulty: Easy
Keywords:
economies of scale
Learning Outcome:
Explain options for managing bottlenecks and managing capacity in service and
manufacturing processes.
AACSB:
Application of Knowledge
23) ________ occurs
when the average cost per unit increases as the facility’s size increases.
Answer: Diseconomies
of scale
Reference:
Planning Long-Term Capacity
Difficulty: Easy
Keywords:
diseconomies of scale
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Application of Knowledge
24) Define utilization
and give a service process example of it.
Answer:
Utilization is expressed as a percent and is the degree to which equipment,
space, or labor is currently being used. Examples will vary.
Reference:
Planning Long-Term Capacity
Difficulty: Easy
Keywords:
utilization, capacity
Learning
Outcome: Explain options for managing bottlenecks and managing capacity
in service and manufacturing processes.
AACSB:
Application of Knowledge
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