Capacity Planning MCQ

A ______ is a part of a production facility where all activities related to a particular phase of the production process (such as assembly, milling, grinding, etc.) are performed.

Answer

Correct Answer: Work center

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______ is the process of increasing capacity in anticipation of future increases in demand for products or services.

Answer

Correct Answer: Leading strategy

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______ is the maximum rate of output achieved by an operation, a process, or a manufacturing or service facility that is producing under ideal conditions.

Answer

Correct Answer: Design capacity

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______ is the extra capacity added in anticipation of future increases in demand for products and services.

Answer

Correct Answer: Capacity cushion

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______ is a decrease in the cost per unit of output as the volume of output increases.

Answer

Correct Answer: Diseconomies of scale

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______ is a decrease in the cost per unit of output as the volume of output increases.

Answer

Correct Answer: Economies of scale

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______ is the process of determining the capacity that an operations system will need to effectively meet this demand.

Answer

Correct Answer: Capacity planning

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______ is the process of doing a more detailed comparison of the available capacity and required capacity by projecting your resource requirements for labor, equipment, and so forth.

Answer

Correct Answer: Capacity requirements planning

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______ is analyzing a facility’s existing capacity relative to its weekly production schedules, also called capacity planning in the short term.

Answer

Correct Answer: Capacity control

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______ is the process of producing products at a steady rate and then storing them until they are demanded.

Answer

Correct Answer: Level capacity plan

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A ______ is a set of standards and practices allowing companies geographically dispersed around the globe to share information, developments, products and components, payment methods, and other relevant information.

Answer

Correct Answer: Global platform

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______ is the process of forecasting demand over several years and looking at demand and growth trends as well as cyclical demand patterns.

Answer

Correct Answer: Strategic capacity planning

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______ is a measure of how well the available effective capacity is being used to produce the actual output.

Answer

Correct Answer: Capacity efficiency

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Capacity planning decisions and ______ are closely related.

Answer

Correct Answer: Sustainability

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______ is the maximum rate of output achieved by an operation, a process, or a manufacturing or service facility that is producing under ideal conditions.

Answer

Correct Answer: Design capacity

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_______ is a part of a production facility where all activities related to a particular phase of the production process are performed

Answer

Correct Answer: Work center

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The process of capacity planning for the long term that requires managers to forecast demand over several years is known as

Answer

Correct Answer: Strategic capacity planning

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RCCP stands for

Answer

Correct Answer: Rough Cut Capacity Planning

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Revenue-sharing contract is an agreement where the supplier and the buyer or manufacturer share the revenue generated from the sale of the products

Answer

Correct Answer: True

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Matching strategy is the process of ______ in small increments to keep pace with increases in demand

Answer

Correct Answer: Increasing capacity

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The process of producing products at a steady rate and then storing them until they are demanded is known as

Answer

Correct Answer: Level capacity plan

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Which process of increasing capacity in anticipation of future increases in demand for products or services?

Answer

Correct Answer: Leading strategy

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Lagging strategy increasing capacity only when there is a sizeable _____

Answer

Correct Answer: Increase in demand

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A set of standards and practices that allows companies geographically dispersed around the globe to share information.This statement True for

Answer

Correct Answer: Global platform

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Effective capacity achieved given the actual changes in product mixture, machines

Answer

Correct Answer: True

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In economies of scale a decrease in the cost per unit of output as the volume of ______

Answer

Correct Answer: Output increases

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Which statement is correct about Diseconomies of scale?

Answer

Correct Answer: Increase in the volume of output beyond a point at which the cost per unit increases

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______ is a process, or a manufacturing or service facility that is producing under ideal conditions

Answer

Correct Answer: Design capacity

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Capacity-reservation contract is an agreement where the manufacturer has the option of _______ additional production capacity with the supplier to be exercised in the future as needed

Answer

Correct Answer: Reserving

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Capacity utilization measure of the extent to which the capacity designed and installed is actually used

Answer

Correct Answer: True

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CRP is stands for

Answer

Correct Answer: Capacity requirements planning

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Which process of determining the capacity that an operations system will need to meet demand effectively ?

Answer

Correct Answer: Capacity planning

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The difference between the capacity required and capacity available is known as

Answer

Correct Answer: Capacity gap

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Capacity efficiency is being used to produce

Answer

Correct Answer: Actual output

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The extra capacity added in anticipation of future increases in demand for products and services is known as

Answer

Correct Answer: Capacity cushion

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Capacity control Analyzing a facility’s existing capacity relative to its weekly production schedules, also called capacity planning in the short term

Answer

Correct Answer: True

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Capacity is the maximum amount of _____ an operation is capable of producing in a given time period

Answer

Correct Answer: Output

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A limit or constraint on the workflow in an operation is known as

Answer

Correct Answer: Bottleneck

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Actual output is also known as

Answer

Correct Answer: Actual capacity

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