MGSC chapter 5

Which of the following is a reason that diseconomies of scale might set in for a business?

• • Efficiencies that lower the average unit cost

• • Cost reductions for materials

• • Loss of focus for an organization

• • Small size of a factory

A __________ is a set of consecutive time periods considered for planning purposes.

• • planning horizon

• • setup time

• • capacity requirement

• • long-term capacity plan

__________ measures the amount by which the average utilization falls below 100 percent.

• Economies of Scale

• A capacity cushion

• utilization

• diseconomies of scale

Which of the following is true about demand forecasts?

• • Peaks and valleys of demand do not occur within a time period.

• • Forecast accuracy improves as the forecasting horizons lengthens.

• • Demand during any period of time is always evenly distributed.

• • Forecast accuracy declines as the forecasting horizon lengthens.

__________ is/are generally used for low-volume, flexible processes.

• output measures

• input measures

• capacity cushions

• utilization

Which is the third step of capacity decision making associated with base case?

• estimate capacity requirements

• evaluate the alternatives

• identify gaps

• develop alternatives

Which of the following is NOT a qualitative concern for a business?

• • Understanding uncertainties about demand

• changing the focus of a business strategy

• trying to enter a new market for the business

• estimating the change in cash flows for a product

More complex waiting-line problems must be analyzed with __________.

• decision trees

• capacity requirements

• simulations

• wait-and-see

Which of the following is NOT a tool that deals with demand uncertainty and variability?

• simulation

• decision trees

• base case

• waiting-line models

Capacity requirements need to be forecasted for several time periods in a __________.

• long-term capacity plan

• current time period

• setup time

• planning horizon