COM Capacity Planning & Resource Management

Question 1

What is the primary goal of capacity planning in operations management?

Accepted Answer

To ensure that production capacity meets current and future demand

Answer

To minimize workforce costs

Answer

To maximize equipment utilization at all times

Answer

To reduce inventory levels

Question 2

Which term refers to the maximum output a facility can produce under ideal, theoretical conditions?

Accepted Answer

Design capacity

Answer

Effective capacity

Answer

Actual output

Answer

Rated capacity

Question 3

Utilization rate in capacity planning is correctly calculated as:

Accepted Answer

Actual output divided by design capacity

Answer

Effective capacity divided by design capacity

Answer

Actual output divided by effective capacity

Answer

Design capacity divided by actual output

Question 4

Which of the following is a SHORT-TERM strategy for managing unexpected capacity shortfalls?

Accepted Answer

Outsourcing production to a third party

Answer

Building a new manufacturing facility

Answer

Investing in advanced manufacturing technology

Answer

Acquiring a competitor's plant

Question 5

In capacity planning, what does the term 'bottleneck' refer to?

Accepted Answer

The process step that limits overall system throughput

Answer

A machine that consistently runs faster than scheduled

Answer

A supply chain disruption causing material shortages

Answer

An excess capacity situation within a department

Question 6

Which capacity strategy involves deliberately adding capacity in advance of anticipated demand growth?

Accepted Answer

Lead strategy

Answer

Lag strategy

Answer

Match strategy

Answer

Reactive strategy

Question 7

What is the primary purpose of a Capacity Requirements Plan (CRP)?

Accepted Answer

To verify sufficient capacity exists to execute the master production schedule

Answer

To schedule employee vacation time

Answer

To determine optimal inventory reorder points

Answer

To evaluate supplier delivery performance