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Multiple Choice Quiz
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1
When referring to capacity, the main issue is typically whether:
A)The business has the skills to do the job
B)The business can produce the desired amount in the time available
C)The business can meet unexpected demand
D)The business can minimize inventory while meeting demand
2
Design capacity is:
A)The capacity management wishes they had
B)The capacity an engineering firm has for designing new products
C)The capacity the business was designed to be able to produce over a long period of time
D)The increase in capacity for a business expansion
3
The output of a constrained system is determined by:
A)The interactions of nonconstraints
B)The interactions of constraints
C)The production rate of the constraint
D)The difference between demand and the nonconstrained workcenters
4
A demand chase aggregate planning approach would:
A)Hire and fire as needed to meet demand
B)Avoid staffing changes in order to minimize costs
C)Use inventory to level staffing needs
D)Apply JIT principles to reduce inventory
5
In capacity requirements planning:
A)Capacity lost to breakdowns is anticipated.
B)Capacity excess is used to build up inventory.
C)Capacity shortages are used to justify late orders.
D)Required capacity is compared to available capacity.
6
Yield management can be best described as:
A)A way to manage manufacturing yields
B)A way to minimize defects in services
C)A way to maximize revenues in capital intensive services
D)A way to increase the output of a constraint
7
When computing the least cost number of customers to overbook:
A)Defection costs are balanced against recovery costs.
B)The combination of expected costs associated with "walking" and no-shows are minimized.
C)Businesses want to eliminate overbooking because it angers customers.
D)The costs associated with providing the customer with alternative service is not considered.
8
When demand is above design capacity for an extended period of time:
A)Cost per unit eventually returns to normal.
B)Cost per unit is actually reduced.
C)Capacity may also be short during the recovery period that follows.
D)It can be expected to respond immediately as soon as demand drops.
9
A negative aspect of demand chase aggregate planning is that:
A)Too much inventory will be stored.
B)Inventory carrying costs will exceed hiring and firing costs.
C)Salaries will increase because of workers with higher skill levels.
D)Employees will seek permanent places to work, reducing the quality of workers available for hire.
10
A negative aspect of level production aggregate planning is that:
A)Inventory levels will be very high.
B)Stockouts will always take place.
C)Employees will refuse to work overtime.
D)The quality of the workforce will not improve because there will be no turnover.





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