Podcast
Questions and Answers
What is the objective of a process strategy?
What is the objective of a process strategy?
- To minimize fixed costs
- To build a production process meeting customer requirements and product specifications within cost and managerial constraints (correct)
- To ensure facilities remain idle
- To maximize facility throughput
What determines fixed costs?
What determines fixed costs?
- Product specifications
- Customer requirements
- Managerial constraints
- Capacity (correct)
What are the options for adjusting capacity in short-range planning?
What are the options for adjusting capacity in short-range planning?
- Add long lead time equipment, modify capacity, use capacity, allocate machinery
- Add facilities, add long lead time equipment, subcontract, add equipment
- Add shifts, subcontract, add equipment, modify capacity
- Add personnel, build or use inventory, schedule jobs, schedule personnel (correct)
What does capacity refer to?
What does capacity refer to?
What is a characteristic of long-range planning for adjusting capacity?
What is a characteristic of long-range planning for adjusting capacity?
Capacity refers to the number of units a facility can hold, receive, store, or produce in a period of time
Capacity refers to the number of units a facility can hold, receive, store, or produce in a period of time
Long-range planning for adjusting capacity may involve adding facilities and long lead time equipment
Long-range planning for adjusting capacity may involve adding facilities and long lead time equipment
Intermediate-range planning for adjusting capacity may involve subcontracting and adding equipment
Intermediate-range planning for adjusting capacity may involve subcontracting and adding equipment
Short-range planning for adjusting capacity includes adding personnel and building or using inventory
Short-range planning for adjusting capacity includes adding personnel and building or using inventory
Determining fixed costs is not influenced by the capacity of a facility
Determining fixed costs is not influenced by the capacity of a facility
Study Notes
Process Strategy Objectives
- The objective of a process strategy is not mentioned in the provided text.
Capacity and Costs
- Capacity refers to the number of units a facility can hold, receive, store, or produce in a period of time.
- Determining fixed costs is not influenced by the capacity of a facility.
Capacity Adjustment Options
- Short-range planning for adjusting capacity includes:
- Adding personnel
- Building or using inventory
- Intermediate-range planning for adjusting capacity may involve:
- Subcontracting
- Adding equipment
- Long-range planning for adjusting capacity may involve:
- Adding facilities
- Investing in long lead time equipment
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Description
Test your knowledge of capacity and constraint management with this quiz based on principles from the Heizer and Render Operations Management, 10e and Principles of Operations Management, 8e textbooks. Challenge yourself with questions on process strategies, customer requirements, and product specifications.
