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OPM530 CHAPTER 8

Total questions: 10

Worksheet time: 20mins

Name
Class
Date
1.

Utilization will always be lower than efficiency because

a)

effective capacity is less than design capacity.

b)

effective capacity is greater than design capacity.

c)

effective capacity equals design capacity.

d)

expected output is less than actual output.

2.

Which of the following represents a common way to manage capacity in the service sector?

a)

appointments

b)

reservations

c)

changes in staffing levels

d)

first-come, first-served service rule

3.

Adding a complementary product to what is currently being produced is a demand management strategy used when

a)

demand exceeds capacity.

b)

capacity exceeds demand for a product that has stable demand.

c)

price increases have failed to bring about demand management.

d)

the existing product has seasonal or cyclical demand.

4.

An aggregate planning strategy satisfies forecast demand by potentially adjusting all EXCEPT which of the following?

a)

labor levels

b)

inventory levels

c)

overtime work

d)

facility capacity

5.

Dependence on an external source of supply is found in which of the following aggregate planning strategies?

a)

varying production rates through overtime or idle time

b)

subcontracting

c)

using part-time workers

d)

back ordering during high demand periods

6.

Which of these is among the demand options of aggregate planning?

a)

back-ordering during high-demand periods

b)

changing inventory levels

c)

varying workforce size

d)

varying production rates through overtime or idle time

7.

Makdiahijau Inc hast lost 20% of its customers to a competitor because Makdiahijau Inc indirectly exposed them to the competitor when it used the ____________ strategy,

a)

varying production rates through overtime or idle time

b)

subcontracting

c)

using part-time workers

d)

back ordering during high demand periods

8.

Which of these aggregate planning strategies is a capacity option?

a)

back ordering

b)

counterseasonal product mixing

c)

using part-time workers

d)

changing price

9.

Which of the following actions is consistent with the use of level strategy?

a)

vary work force to meet demand requirements

b)

vary production levels to meet demand requirements

c)

use overtime to meet higher-than-average demand requirements

d)

use inventory to meet demand requirements

10.

The image on the left showcases the appearance of pineapple tarts produced by Perusahaan Kuih Error Fazeera Sdn Bhd before December 2021, while the one on the right is the new look after January 2022. Based on the revised look, which tactic is being adopted by the company to match its capacity to demand?

a)

Improving processes to increase throughput

b)

Redesigning products to facilitate more throughput

c)

Adding process flexibility to meet changing product preferences

d)

Making staffing changes