Operational Capacity Management MCQs

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Operational capacity planning aims to balance customer demand with production capability. The possible approaches to capacity planning include:
Operational Capacity Management MCQs

Operational Capacity Management MCQs

Operational capacity planning aims to balance customer demand with production capability. The possible approaches to capacity planning include: Level capacity plan, Chase demand plan, Demand management planning. Here on MCQs.club we have designed easily understandable Multiple-Choice Questions (MCQs) that covers capacity planning, efficiency, capacity management, types of capacity, capacity definition, system capacity, factors affecting capacity planning in operations management. These MCQs are useful for Accountancy, Business management and Competitive exams.

  1. Operational capacity planning aims to balance customer demand with production capability. Identify the possible approaches to capacity planning:
    1. Level capacity plan
    2. Chase demand plan
    3. Demand management planning
    4. All of the above
  1. Level capacity plan maintains production activity at a constant rate. A simple approach but can result in a buildup of inventory or in stock outs.
    1. The above statement is correct
    2. The above statement is incorrect
  1. Chase demand plan matches production with demand. Will require a flexible approach to production and a good forecasting system.
    1. Incorrect
    2. Correct
  1. A number of methods can be used to help manage operational capacity. Identify such methods:
    1. Flexible manufacturing systems
    2. Queuing theory
    3. Forecasting
    4. All of the above
  1. Flexible manufacturing system (FMS) is a highly automated manufacturing system, which is computer controlled and is capable of producing a large number of parts in a flexible manner. The main benefit is that output can be produced quickly in response to specific orders.
    1. True
    2. False
  1. The main features of Flexible manufacturing system (FMS) include:
    1. The ability to change quickly from one job to another
    2. Fast response times
    3. Small batch production
    4. All of the above
  1. Queuing theory is a technique designed to optimize the balance between customer waiting time and idle service capacity.
    1. True
    2. False

  1. Which of the following statement is correct with regard to ‘queuing theory’?
    1. Queuing theory applies in situations where obvious queues form e.g. shops and bus stops.
    2. Queuing theory concludes that throughput improves and customer satisfaction increases if one long queue is used instead of separate lines.
    3. The frustration of getting in a ‘slow line’ are removed because that one slow transaction does not affect the throughput of the remaining customers.
    4. All of the above
  1. Benefits of applying queuing theory include:
    1. The ability to give customers an estimated waiting time,
    2. Plan peaks and dips in demand to ensure staffing levels are appropriate,
    3. Manage demand through appointment systems and use queuing theory data as benchmarks to compare performance.
    4. All of the above
  1. Which of the following is correct regarding ‘uncertainties’?
    1. Uncertainties in capacity could be caused by a number of factors, for example the shortage or a delay in the supply of a resource.
    2. Uncertainties in demand are often due to the unpredictable nature of customers and potential customers.
    3. Dealing with uncertainty requires a flexibility in planning and control.
    4. All of the above are correct
  1. Dependent demand is demand that is predictable because it is based on a factor that is known. For example, an organisation providing school meals can predict the demand for its meals because the size of each school population is known.
    1. The above statement is correct
    2. The above statement is incorrect
  1. Identify the planning and control activities associated with balancing capacity and demand.
    1. Loading, Sequencing
    2. Scheduling
    3. Monitoring and controlling
    4. All of the above
  1. Decisions have to be taken when work comes in about the order in which different jobs will be done or different orders fulfilled. The sequencing of operations could be on the basis of any of the following.
    1. Customer priority
    2. Due date
    3. Last in first out
    4. First in first out
    5. Longest operation time first
    6. Shortest operation time first
      1. The above is correct
      2. The above is incorrect
  1. The preferred sequencing criteria should be the one that optimises operational performance in terms of:
    1. Dependability of delivery (i.e. meeting the due dates promised to customers)
    2. Speed of delivery and Cost
    3. Minimising idle time in work centres and Minimising inventory levels
    4. All of the above

  1. Planning and controlling capacity involve:
    1. Planning the normal capacity of the operation
    2. Reacting to changes in demand
    3. Both A&B
    4. None
  1. Identify which of the following is correct regarding forecasting demand for operations management and capacity planning purposes.
    1. For operations management purposes, demand forecasts should be expressed in terms of units rather than in terms of sales revenue. For example, for a manufacturing operation it is more relevant to express demand in terms of labour hours or machine hours.
    2. Forecasts should be as accurate as possible, because capacity will be planned on the basis of the forecasts.
    3. Forecasts of demand should give some indication of the degree of uncertainty. Where possible, the variation in demand should be assessed statistically, perhaps on the basis of demand patterns from the past.
    4. All of the above
  1. A yield management approach is particularly well-suited to an operation where:
    1. Capacity is fairly fixed in the short- to medium-term.
    2. The market can be segmented, to allow some price discrimination.
    3. The service cannot be sold in advance.
    4. The marginal cost of making an additional sale is low.
    5. All of the above

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