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Information Technology Essay

577 words - 3 pages

1. Which of the following statements is not true about capacity management in operations?
A. When looking at capacity, operations managers need to look at both resource input and product outputs.

B. An operations management view also emphasizes the time dimension of capacity.

C. Capacity planning itself has different meaning to individuals at different levels within the operations management hierarchy.

D. The definition of capacity, in an operations management context, makes a clear distinction between efficient and inefficient use of capacity.

A, B, and C are correct statements. D is the correct answer. The definition of capacity, in an operations management context, makes no distinction between efficient and inefficient use of capacity.

2. Capacity utilization rate can be computed as:
A. Capacity used - best operating level

B. Capacity used x best operating level

C. ...view middle of the document...

Frequency of capacity additions

C. External sources of capacity

D. A and B

E. A and C

F. A, B, and C

F is the correct answer. All three are considerations when adding capacity.

5. The types of costs to consider when adding capacity are the cost of upgrading frequently and the cost of upgrading too infrequently.
A. True

B. False

A is the correct answer.

6. The steps to determining capacity requirements include:
A. Using decision trees to evaluate capacity alternatives

B. Calculating equipment and labor requirements to meet product line forecasts

C. Projecting labor and equipment availabilities over the planning horizon

D. A and B

E. B and C

F. A, B, and C

E is the correct answer. Using forecasting techniques to forecast sales for individual products within each product line (and not A) is another step.

7. Service capacity:
A. is highly time and location dependent

B. is subject to less volatile demand fluctuations

C. utilization directly impacts service quality

D. A and B

E. A and C

F. A, B, and C

E is the correct answer. Service capacity is subject to more (not less) volatile demand fluctuations.

8. The best operating level is:
A. the maximum point of the cost curve

B. the level of capacity for which average unit cost is minimized

C. maximum capacity

D. the level of capacity for which total cost is minimized

E. the level of capacity for which average unit cost is maximized

B is the correct answer. Best operating level is the level of capacity for which the process was designed and thus is the volume of output at which average unit cost is minimum.

9. Skinner is cited as suggesting which of the following capacity-related concepts?
A. Capacity balance

B. Diseconomies of scale

C. Best operating level

D. Focused factory

E. None of the above

D is the correct answer. Wickham Skinner suggested the focused factory concept in his Harvard Business Review article, May-June 1974. The other terms are general terms and were not suggested by any one individual in particular.

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