MGSC chapter 5 exam 2 questions

Extend and Witness are __________.

• planning programs

• decision tree programs

• simulation packages

• waiting-line models

Which of the following is true about demand forecasts?

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

• • Forecast accuracy improves as the forecasting horizons lengthens.

• • Forecast accuracy declines as the forecasting horizon lengthens.

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

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

• planning horizon

• long-term capacity

• setup time

• capacity requirement

When do diseconomies of scale occur?

• when the average cost per unit decreases as a facility's size decreases

• • When the average cost per unit decreases as a facility’s size increases

• • When the average cost per unit increases as a facility’s size increases

• • When the average cost per unit increases as a facility’s size decreases

Which step of capacity decision making is associated with qualitative concerns?

• evaluating alternatives

• estimating capacity requirements

• developing alternatives

• identifying gaps

All of the following EXCEPT __________ is used to measure utilization.

• equipment

• space

• management

• the workforce

The __________ is the amount of reserve capacity a process uses to handle temporary losses of production capacity or sudden increases in demand.

• diseconomies of scale

• utilization

• economies of scale

• capacity cushions

Which of the following is TRUE about expansionist strategy?

• • The expansionist strategy stays ahead of demand.

• • If demand is increasing and the time between increments increases, the size of the increments must shrink significantly.

• • The expansionist strategy lags behind demand.

• • The timing and sizing of expansion have an inverse effect.

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

• capacity cushion

• diseconomies of scale

• utilization

• economies of scale

Which of the following is true about capacity measurements for a business?

• • Output measures can be measured and put into number, but input measures cannot.

• • Input measures can be measured and put into number, but output measures cannot.

• • Capacity is expressed in only one way, in terms of output measures.

• • No single capacity measure is best for all situations.