BUS 430 WEEK 7 QUIZ 6
BUS 430
Week 7 Quiz 6
TRUE/FALSE
1. A measure of capacity is the number of seats on an
airplane per flight.
2. A formal definition of
capacity is the average rate of output per unit of time.
3. Short-term capacity
decisions usually involve adjusting schedules or staffing levels.
4. Economies of scale occur
when the average unit cost of the good or service begins to increase as the
capacity and/or volume of throughput increases.
5. Focused factories are
often devoted to a specific technology or particular market segments or
customers.
6. Long setup times increase
capacity and improve flexibility.
7. An example of safety
capacity would be planning additional capacity to account for employee summer
vacations.
8. In calculating required
capacity for a job shop, setup time is a significant factor.
9. Capacity costs depend
primarily on annual operating and maintenance costs.
10. Complementary goods or services
balance seasonal demand cycles and therefore use excess capacity available.
MULTIPLE CHOICE
1. Average safety capacity (%) is computed as
2. Safety capacity is
intended for all of the following except
3. The long-term capacity expansion
strategy that can be called a capacity straddle strategy is
4. Safety capacity or a
capacity cushion is
5. C&M Machining is
developing plans for a dedicated production line and needs to determine how
many drill presses will be needed. Engineering estimates are that one drill
press will be able to process 120 parts per hour. Daily demand is 2,400 parts.
C&M operates one 8 hour shift per day. How many drill presses are needed to
meet the capacity requirements?
6. In service organizations,
capacity is more often viewed as ____
SHORT ANSWER
1. Define capacity including the two ways it can be
viewed. Provide an example of each way.
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