Operations And Supply Chain Management The Core 4th Edition – Test Bank

Operations And Supply Chain Management The Core 4th Edition by F. Robert Jacobs – Test Bank

1.  Capacity can be defined as the ability to hold, receive, store, or accommodate.

TRUE

A dictionary definition of capacity is “the ability to hold, receive, store, or accommodate.”

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Bloom’s: Remember

Difficulty: 1 Easy

Learning Objective: 04-01

Topic: Capacity Management in Operations and Supply Chain Management

1. When evaluating capacity, managers need to consider both resource inputs and product outputs.

TRUE

When looking at capacity, operations managers need to look at both resource inputs and product outputs.

AACSB: Analytic

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Bloom’s: Analyze

Bloom’s: Remember

Difficulty: 1 Easy

Learning Objective: 04-01

Topic: Capacity Management in Operations and Supply Chain Management

3.  Capacity can be defined as the amount of available resource inputs relative to requirements for output over a particular    period of time.

TRUE

Capacity is a relative term; in an operations management context, it may be defined as the amount of resource inputs available relative to output requirements over a particular period of time.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Bloom’s: Remember

Difficulty: 1 Easy

Learning Objective: 04-01

Topic: Capacity Management in Operations and Supply Chain Management

1. The capacity utilization rate is found by dividing best operating level by capacity used.

FALSE

The capacity utilization rate is found by dividing capacity used by best operating level.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Bloom’s: Remember

Difficulty: 1 Easy

Learning Objective: 04-01

Topic: Capacity Planning Concepts

1. The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of labor-intensive resources.

FALSE

The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of capital-intensive resources—facilities, equipment, and overall labor force size—that best supports the company’s long-range competitive strategy.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Bloom’s: Remember

Difficulty: 1 Easy

Learning Objective: 04-01

Topic: Capacity Planning Concepts

6.   The objective of strategic capacity planning is to determine the overall capacity level of capital intensive         resources   (including facilities, equipment, and overall labor force size) that best supports the company’s short-range competitive strategy.

FALSE

The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of capital-intensive resources—facilities, equipment, and overall labor force size—that best supports the company’s long-range competitive strategy.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Bloom’s: Remember

Difficulty: 1 Easy

Learning Objective: 04-01

Topic: Capacity Planning Concepts

1. The objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities, equipment, and overall labor force size) that best supports the company’s long-range competitive strategy.

TRUE

The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of capital-intensive resources—facilities, equipment, and overall labor force size—that best supports the company’s long-range competitive strategy.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Bloom’s: Remember

Difficulty: 1 Easy

Learning Objective: 04-01

Topic: Capacity Planning Concepts

1. Best operating level is usually a multiple of the level of capacity for which a process was designed.

FALSE

(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 minimized.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Bloom’s: Remember

Difficulty: 1 Easy

Learning Objective: 04-01

Topic: Capacity Planning Concepts

9.    Best operating level is the volume of output at which average unit cost is minimized.

TRUE

(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 minimized.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Bloom’s: Remember

Difficulty: 1 Easy

Learning Objective: 04-01

Topic: Capacity Planning Concepts

1. At some point, the size of a growing plant can become too large and diseconomies of scale becomes a capacity planning problem.

TRUE

At some point, the size of a plant becomes too large and diseconomies of scale becomes a problem.

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Bloom’s: Remember

Difficulty: 1 Easy

Learning Objective: 04-02

Topic: Capacity Planning Concepts