Chapter 7 Multiple choice questions

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. In a materials processing operation the design capacity is defined as _____________?

the minimum output per given time. correct incorrect

the aggregate annual output. correct incorrect

the theoretical maximum output in a given time. correct incorrect

the most likely output in a given time. correct incorrect

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. In a materials processing operation, the effective capacity of a machine is defined as _________________?

the minimum output per given time. correct incorrect

the aggregate annual output. correct incorrect

the theoretical maximum output in a given time. correct incorrect

the most likely output in a given time. correct incorrect

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. Machine utilization can be calculated by dividing ____________ by _____________.

Effective capacity by Design capacity correct incorrect

Achieved capacity by Design capacity correct incorrect

Achieved capacity by Effective capacity correct incorrect

Design capacity by Achieved capacity correct incorrect

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. Machine efficiency is calculated by dividing _____________ by ______________.

Effective capacity by Design capacity correct incorrect

Achieved capacity by Design capacity correct incorrect

Achieved capacity by Effective capacity correct incorrect

Design capacity by Achieved capacity correct incorrect

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. What additional factor does Overall Equipment Effectiveness take into account which makes it more meaningful than efficiency or utilization?

Flexibility correct incorrect

Speed correct incorrect

Cost correct incorrect

Quality correct incorrect

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. Which of the following is not a factor which makes managing capacity in a customer processing operation (CPO) very challenging?

Most CPO's are in a fixed location. correct incorrect

Most CPO's produce services which are consumed at the same time as they are produced. correct incorrect

Most CPO's have a constant demand. correct incorrect

The infrastructure of most CPO's is fixed. correct incorrect

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. The two main approaches to forecasting are _____________ and _______________

Qualitative and Quantitative correct incorrect

Historical and Quantitative correct incorrect

Judgemental and Historical correct incorrect

Qualitative and Judgemental correct incorrect

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. Adjusting inputs to an operation so that outputs match demand is known as ____________________?

A level capacity strategy correct incorrect

A demand management strategy correct incorrect

A chase demand strategy correct incorrect

A yield management strategy correct incorrect

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. Having a 'happy hour' in a pub or restaurant is an example of which type of capacity management?

A level capacity strategy correct incorrect

A demand management strategy correct incorrect

A chase demand strategy correct incorrect

A yield management strategy correct incorrect

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. Revenue management is a technique often used by hotels and airlines to manage demand. It is also known as _____________________?

Level capacity correct incorrect

Demand management correct incorrect

Chase demand correct incorrect

Yield management correct incorrect