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The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as available capacity.

A) True
B) False

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The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand.

A) True
B) False

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Breaking product families into individual products and components of products is called


A) product breakdown.
B) component planning.
C) disaggregation.
D) enterprise planning.

E) B) and C)
F) C) and D)

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A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate,thus effectively printing 38 pages per minute (ppm).This is the ________ capacity of the printer.

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The capacity for a machine or system that is available after accounting for scrap and rework and also factors in inefficiencies inherent in the system is known as


A) design capacity.
B) available capacity.
C) actual capacity.
D) rough capacity.

E) B) and C)
F) None of the above

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The strategy that varies prices in order to match capacity with demand is known as


A) chase SOP.
B) level SOP.
C) yield management.
D) rough-cut capacity management.

E) All of the above
F) A) and D)

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C

The design capacity of a machine or system refers to the maximum output that can possibly be attained given optimal operating conditions.

A) True
B) False

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The ratio of actual output to design capacity is


A) efficiency.
B) throughput.
C) utilization.
D) productivity.

E) A) and B)
F) A) and C)

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C

The rate of capacity utilization that minimizes average product cost is known as


A) economies of scale.
B) diseconomies of scale.
C) best operating level.
D) efficiency.

E) A) and B)
F) A) and C)

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C

A method for planning capacity on a daily basis is known as ________.

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capacity l...

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A planning strategy that produces the same amount every period,and demand is met by varying inventory levels is known as


A) chase SOP.
B) level SOP.
C) hybrid SOP.
D) rough-cut SOP.

E) A) and D)
F) None of the above

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Given the following information,compute the efficiency of the system. Actual capacity = 80 units per day Design capacity = 100 units per day Utilization = 48%


A) 20%
B) 40%
C) 60%
D) 80%

E) A) and D)
F) A) and B)

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Which of the following is not an input for the Materials Requirements Plan (MRP) ?


A) Bill of Materials
B) Production Activity Report
C) Master Production Schedule
D) Inventory Status File

E) A) and B)
F) A) and D)

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A printer has been rated by the manufacturer to print 40 pages per minute (ppm).However it is noticed that the printer has a 5% jamming rate.Hence the actual capacity of the printer is 36 pages per minute (ppm).

A) True
B) False

Correct Answer

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The feasibility check of a Materials Requirement Plan (MRP)is the detailed capacity plan.

A) True
B) False

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The capacity strategy where capacity is added in anticipation of demand is called ________.

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Efficiency is defined as the ratio of


A) actual output to actual capacity.
B) actual output to design capacity.
C) design capacity to actual capacity.
D) actual capacity to actual output.

E) A) and B)
F) A) and C)

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In a matching capacity strategy,capacity is increased at relatively the same rate that demand increases.

A) True
B) False

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An inventory management approach based on regularly scheduled counts of different classes of inventory is called a(n)


A) cycle count report.
B) inventory status file.
C) Master Production Schedule.
D) Bill of Materials.

E) A) and B)
F) None of the above

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Systems that help managers make decisions relating to the creation of schedules that balance demand and supply are known as ________.

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sales and ...

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