15/4 Capacity Management - MCQ with Answers

What does 'capacity' refer to in manufacturing?

• The amount of products stored in a warehouse

• The ability of available resources to meet demand

• The number of employees in a company

• All the above

Which of the following factors affects capacity in a restaurant?

• The number of tables and chairs

• The size of the kitchen

• The number of staff

• All of the above

Why is capacity management important?

• To produce as much stock as possible at all times

• To match production levels with customer demand

• To increase inventory storage costs

• All the above

What is the key risk of a lead capacity strategy?

• Running out of stock too quickly

• Holding excess inventory if demand does not increase

• Delayed response to rising demand

• Reduced flexibility in production

How does a lag strategy manage capacity?

• By increasing capacity only after demand has been proven

• By anticipating demand and increasing capacity in advance

• By maintaining constant capacity regardless of demand

• By reducing capacity as demand decreases

What is a match strategy in capacity management?

• Making small adjustments to capacity to meet demand

• Expanding production rapidly in response to demand

• Maintaining constant production regardless of demand

• Storing large amounts of stock in advance

What does a dynamic strategy rely on?

• A fixed schedule for production

• Market trends and sales forecast data

• Random changes in production levels

• Fixed storage space

What is a bottleneck in manufacturing?

• a) A temporary shortage of raw materials

• b) A stage in the process that slows down overall production

• c) The final quality control step before shipping

• d) All the below

How can bottlenecks be prevented?

• Improving staff training

• Upgrading equipment and machinery

• Planning extra capacity in the system

• All of the above

What is Manufacturing Resource Planning (MRP II) used for?

• Only controlling inventory levels

• Planning capacity, scheduling, and financial forecasting

• Reducing product quality standards

• Increasing warehouse storage space