Which of the following situation is to be considered as best operating level *?

Inhaltsverzeichnis Show

Which of the following situation is to be considered as best operating level?
Which one of the following operating levels is best with respect to capacity?
What is effective capacity in operations management?
What are the three primary capacity strategies?

Which of the following statements is not true about capacity management in operations?

When looking at capacity, operations managers need to look at both resource input and product outputs.

An operations management view also emphasizes the time dimension of capacity.

Capacity planning itself has a different meaning to individuals at different levels within the operations management hierarchy.

The definition of capacity, in an operations management context, makes a clear distinction between efficient and inefficient use of capacity.

Capacity utilization rate can be computed as:

Capacity used – Best operating level

Capacity used × Best operating level

Capacity used / Best operating level

Capacity used + Best operating level

None of the above

Capacity flexibility can be achieved through:

Flexible plants

Flexible processes

Flexible workers

Strategies that use the capacity of other organizations

All of the above

Considerations in adding capacity include:

Maintaining system balance

Frequency of capacity additions

External sources of capacity

A and B

A, B, and C

The types of costs to consider when adding capacity are the cost of upgrading frequently and the cost of upgrading too infrequently.

True

False

The steps to determining capacity requirements include:

Using decision trees to evaluate capacity alternatives

Calculating equipment and labor requirements to meet product line forecasts

Projecting labor and equipment availabilities over the planning horizon

B and C

A, B, and C

Service capacity:

is highly time and location dependent

is subject to less volatile demand fluctuations

should take into account service quality

A and B

A and C

The best operating level is:

the maximum point of the cost curve

the level of capacity for which average unit cost is minimized

maximum capacity

the level of capacity for which total cost is minimized

the level of capacity for which average unit cost is maximized

As capacity utilization of a service increases:

service quality decreases

service quality does not change

customers dislike the service

service quality increases

All of the above

In a service system, the optimal utilization of servers is:

100%

Context specific depending on degree of uncertainty and the stakes for non-service or delayed service

Low utilization may be appropriate for services such as hospital emergency or fire protection service

A, B and C

B and C

Which of the following situation is to be considered as best operating level?

The best operating level is the level of capacity for which process was designed and thus is the volume of output at which average unit cost is minimized.

Which one of the following operating levels is best with respect to capacity?

Best operating level is the volume of output at which average unit cost is minimized. Capacity planning is generally viewed in three time durations: Immediate, Intermediate and Indeterminate. False, The correct answer is long-range, intermediate-range and short-range.

What is effective capacity in operations management?

Effective capacity is the maximum amount of work that an organization is capable of completing in a given period due to constraints such as quality problems, delays, material handling, etc. The phrase is also used in business computing and information technology as a synonym for capacity management.

What are the three primary capacity strategies?

There are three commonly recognized capacity strategies: lead, lag, and tracking. A lead capacity strategy adds capacity in anticipation of increasing demand.