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1

Short-run variations in demand can influence design capacity.
A)True
B)False
2

Design capacity is not the same as effective capacity.
A)True
B)False
3

Peak loads and seasonal requirements affect design capacity planning, as well as effective capacity and actual output.
A)True
B)False
4

Plant efficiency increases as the ratio of design capacity to actual output increases.
A)True
B)False
5

Matching the timing of demand is more important for capacity planning for services than it is for capacity planning for manufacturing.
A)True
B)False
6

Demand management is a strategy that can be used to offset capacity limitations.
A)True
B)False
7

Efficiency, in capacity terms, is the ratio of:
A)actual output to design capacity.
B)actual output to design capacity.
C)effective capacity to actual output.
D)design capacity to effective capacity.
E)design capacity to actual capacity.
8

Seasonal variations are often easier to deal with in capacity planning than trend, because seasonal factors tend to be:
A)predictable.
B)smaller.
C)larger.
D)controllable.
E)none of the above is correct.
9

Given the following information, the utilization is: Effective capacity = 20 units per day Design capacity = 60 units per day Actual output = 15 units per day
A)1/4
B)1/3
C)1/2
D)3/4
E)none of these





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