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Capacity Planning in System Design
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Capacity Planning in System Design

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Questions and Answers

What is the main focus of strategic capacity planning?

  • Achieving a match between long-term supply capabilities and predicted levels of long-term demand (correct)
  • Achieving a match between short-term supply capabilities and expected demand
  • Achieving a balance between equipment and employee skills
  • Achieving the maximum output rate in a short time span

    • What is design capacity?

  • The expected demand for a product or service
  • The upper limit of an operation's capacity, considering allowances like personal time and maintenance
  • The maximum upper limit or ceiling that an operating unit can handle
  • The output rate or service capacity for which a process or facility is designed (correct)

    • What is a bottleneck operation?

  • An operation that is not subject to capacity constraints
  • An operation with higher capacity than the other operations
  • An operation that does not limit the performance of a process or system
  • An operation with lower capacity than other operations in a sequence (correct)

    • What are economies of scale?

    <p>Decreasing average unit costs when increasing output below optimal level</p> Signup and view all the answers

    What are the long-term capacity needs concerned with?

    <p>Cycles or trends</p> Signup and view all the answers

    What is the capacity cushion?

    <p>An amount of capacity in excess of expected demand</p> Signup and view all the answers

    What is a constraint in capacity planning?

    <p>Something that limits the performance of a process or system from achieving its goals</p> Signup and view all the answers

    What is effective capacity?

    <p>The output rate or service capacity that takes into account personal time, maintenance, and scrap</p> Signup and view all the answers

    What are diseconomies of scale?

    <p>Increasing average unit costs when output is more than the optimal level</p> Signup and view all the answers

    What are short-term capacity needs mainly concerned with?

    <p>Seasonal variations and other variations from average</p> Signup and view all the answers

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