6/9/2020 Multiple-choice questions: B

Home Student Resources Chapter 11: Capacity planning and control Multiple-choice questions: B

Multiple-choice questions: B
Try the multiple choice questions below to test your knowledge of this chapter. Once you have completed the test,
click on 'Submit Answers for Grading' to get your results.

This activity contains 15 questions.

Rejecting is a term used to describe a situation when:

The server refuses to deal with a customer who is perceived as non-value adding.
The customer becomes frustrated with waiting and leaves the queue, thus refusing the service.
The number of customers in the queue is at a maximum and customers are turned away.
The customer decides not to join the queue because it’s too long.

Outlook is calculated as:

Forecast capacity / Actual capacity

Forecast demand / Forecast capacity

Actual demand / Actual capacity

Actual demand / Forecast capacity

What three aspects of performance does the OEE measure consider?

Cost, speed, flexibility

Time, quality, speed

Quality, cost, speed

Flexibility, cost, time

Which of the following statements is true?

Efficiency is lower or equal to utilisation.

Efficiency is always higher than utilisation.
Utilisation and efficiency are usually equal.

Utilisation is lower than efficiency in almost all cases.

Actual output divided by design capacity is a measure of:

Average output
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6/9/2020 Multiple-choice questions: B

Efficiency

Demand
Utilisation

If the long-term outlook is poor, but the short-term outlook is good, the operation
should:
Hire staff
Hire and make for inventory, start to recruit

Overtime/hire temporary workers

Adopt short time/idle time
Lay off staff
Make for inventory/adopt short time

If the long-term outlook is good and the short-term outlook is good, the operation
should:
Hire staff
Make for inventory/adopt short time

Hire and make for inventory, start to recruit

Lay off staff
Adopt short time/idle time
Overtime/hire temporary workers

If the long-term outlook is normal but the short-term outlook is poor, the operation
should:
Adopt short time/idle time
Make for inventory/adopt short time
Hire staff
Hire and make for inventory, start to recruit
Lay off staff
Overtime/hire temporary workers

The first steps of capacity planning and control do not include:

Identifying the alternative capacity plans.

Measuring aggregate demand and capacity.
Studying the effect of queueing theory.

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6/9/2020 Multiple-choice questions: B

Choosing the most appropriate capacity plan.

Which of the following alternative methods of responding to demand fluctuations is

not appropriate?
Ignore the fluctuations and apply a level capacity plan.
Adjust capacity to reflect the fluctuations through a chase demand plan.
Increase marketing activity and develop a chase demand plan.
Attempt to change demand to fit available capacity using demand management.

Yield management is not especially useful where:

Capacity is relatively fixed.

The service/product can be stored.
The market can be fairly clearly segmented.
The service cannot be sold in advance.

What is meant by yield management?

Encouraging growth in demand during periods of low demand and restraining it during periods of
high demand.

The maximisation of profit through capacity, demand and pricing policies.

Expanding the operation at periods of high demand in order to yield more sales revenue.

Overbooking capacity to ensure that all capacity is filled at all times.

The maximum output of a system in a given period is called the:

Breakeven point
Master production schedule

Designed capacity
Economic order quantity

Production efficiency

Super Computers Ltd. have 10 staff who spend 40 hours per day making a total of 140
computers. By redesigning their manufacturing process, they increase output to 160
per day. What is the increase in productivity?

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6/9/2020 Multiple-choice questions: B
14.29%
8.26%

10.87%

12.50%
20.0%

Expert Electronics Ltd. have 5 staff who spend 40 hours per day making 150
computers. By redesigning their manufacturing process, they increase output to 160
per day. What is the increase in productivity?
6.66%
4.34%

6.06%

7.77%
5.97%

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