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
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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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