3 Capacity Planning Online Quiz Questions

A company waits until demand has risen before expanding its capacity. Is this a following-capacity approach?

A factory makes several products that cannot be treated as interchangeable. Which approach gives the most meaningful capacity measure?

What is the capacity-timing strategy called when an organization adds capacity in smaller increments as demand develops?

A plant’s actual output stays the same, but its effective capacity is lower than its design capacity. Is utilization calculated using effective capacity, while efficiency is calculated using design capacity?

A facility expects demand to remain below its available capacity. Which action is a direct way to adjust capacity to this excess?

A plant produces $720$ units per day against a design capacity of $1{,}000$ units per day. What is its utilization? Enter the percentage-point value, without the percent sign.

Expected demand exceeds effective capacity. Which actions could managers consider to address the capacity gap? Select all correct choices.

Each order in a process must pass through three steps with capacities of $50$, $30$, and $40$ orders per hour. What is the maximum process capacity?

Which factors besides internal equipment and facilities can affect whether an organization can change capacity? Select all correct choices.

A service organization forecasts demand above its effective capacity for the next planning period, but the forecast is uncertain. Describe how managers should assess the gap, choose a response, and manage the plan as actual demand develops.

Which capacity-timing approach adds capacity before demand is expected to rise, and what key risk does it carry if the forecast is too high?

A factory makes two products with different units of output. Which measure would best allow managers to compare the capacity required for both products without treating their outputs as interchangeable?

A plant's equipment could theoretically produce 900 units per day, but planned maintenance and setup time reduce the realistically achievable output to 720 units per day. Which capacity figure should managers use as the realistic benchmark when comparing expected demand with production capability?

A company decides not to expand until it has observed an actual increase in demand. Which capacity-timing approach is it using?

A service provider adds staff and equipment now because it expects demand to rise next quarter. Which approach is this, and what is a key risk if the forecast is too high?

When expected demand exceeds an organization's capacity, what is the term for arranging for another organization to perform some of the work?

A process produces $510$ units when its effective capacity is $600$ units. What is its efficiency, expressed as a percentage?

A process has three sequential steps with capacities of 50, 30, and 40 orders per hour. If the first step's capacity increases from 50 to 60 orders per hour while the other steps remain unchanged, does the process's maximum capacity increase?