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BAM199 P2 Quiz

Total questions: 20

Worksheet time: 13mins

Name
Class
Date
1.

Which is not a determinant of effective capacity?

a)

Facilities

b)

Cost

c)

Product and Service Factors

d)

Product and Service

Factors

2.

The term capacity refers to the maximum quantity an operating unit can process over a given period of time.

a)

True

b)

False

3.

Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations.

a)

True

b)

False

4.

Round off your final answer to two decimal places. Determine the efficiency rate if; Actual capacity is 23,500, Design capacity is 35,000 and Effective capacity is 32,000.

(a)  

5.

Capacity planning requires an analysis of needs: what kind, how much, and when.

a)

True

b)

False

6.

Utilization is defined as the ratio of effective capacity to design capacity.

a)

True

b)

False

7.

According to the reading on restaurant sourcing practices, only fast-food restaurants are able to bring in outsourced foods.

a)

True

b)

False

8.

A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day. Compute for the utilization rate.

a)

70.00%

b)

66.67%

c)

87.50%

d)

80.00%

e)

None of the options

9.

Capacity decisions often involve a long-term commitment of resources which, when

implemented, are difficult or impossible to modify without major added costs.

a)

True

b)

False

10.

Capacity decisions are based on technological concerns, not demand forecasts.

a)

True

b)

False

11.

A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and effective capacity is five furnaces a day. Compute for the efficiency rate.

a)

70.00%

b)

66.67%

c)

87.50%

d)

80.00%

e)

None of the options

12.

Bottleneck operation is an operation in a sequence of operations whose capacity is lower than that of the other operations.

a)

True

b)

False

13.

Outsourcing is an activity performed within the business, using the company’s assets and employees.

a)

True

b)

False

14.

The goal of strategic capacity planning is to achieve a match between the long-term supply capabilities of an organization and the predicted level of long-term demand.

a)

True

b)

False

15.

A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day. Compute for the efficiency rate.

a)

70.00%

b)

66.67%

c)

87.50%

d)

80.00%

e)

None of the options

16.

A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and effective capacity is five furnaces a day. Compute for the utilization rate.

a)

70.00%

b)

66.67%

c)

87.50%

d)

80.00%

e)

None of the options

17.

Which is not a determinant of effective capacity?

a)

Human Factors

b)

The nature of demand

c)

Policy

d)

Supply Chain Factors

18.

Which is not a factor to consider in deciding whether to perform in-house or outsource?

a)

Expertise

b)

The nature of demand

c)

Policy Factors

d)

Risks

19.

Round off your final answer to two decimal places. Determine the utilization rate if; Actual capacity is 23,500, Design capacity is 35,000 and Effective capacity is 32,000.

(a)  

20.

Outsourcing is

a)

exporting

b)

Building a factory in another country to produce for that country’s market

c)

Importing

d)

A firm having someone else to do part of what it previously did itself