BUS 430 BUS430 Week 7 Quiz 6 Answers

BUS 430 BUS430 Week 7 Quiz 6 Answers


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BUS 430 Week 7 Quiz 6



        1.     A measure of capacity is the number of seats on an airplane per flight.

        2.     A formal definition of capacity is the average rate of output per unit of time.

        3.     Short-term capacity decisions usually involve adjusting schedules or staffing levels.

        4.     Economies of scale occur when the average unit cost of the good or service begins to increase as the capacity and/or volume of throughput increases.

        5.     Focused factories are often devoted to a specific technology or particular market segments or customers.

        6.     Long setup times increase capacity and improve flexibility.

        7.     An example of safety capacity would be planning additional capacity to account for employee summer vacations.

        8.     In calculating required capacity for a job shop, setup time is a significant factor.

        9.     Capacity costs depend primarily on annual operating and maintenance costs.

      10.     Complementary goods or services balance seasonal demand cycles and therefore use excess capacity available.


        1.     Average safety capacity (%) is computed as

        2.     Safety capacity is intended for all of the following except

        3.     The long-term capacity expansion strategy that can be called a capacity straddle strategy is

        4.     Safety capacity or a capacity cushion is

        5.     C&M Machining is developing plans for a dedicated production line and needs to determine how many drill presses will be needed. Engineering estimates are that one drill press will be able to process 120 parts per hour. Daily demand is 2,400 parts. C&M operates one 8 hour shift per day. How many drill presses are needed to meet the capacity requirements?

        6.     In service organizations, capacity is more often viewed as ____



        1.     Define capacity including the two ways it can be viewed.  Provide an example of each way.

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