Capacity Planning MCQs

Capacity Planning MCQs

Answer these 30+ Capacity Planning MCQs and assess your grip on the subject of Capacity Planning. Scroll below and get started!

1: Actual output is also known as

A.   Avocation capacity

B.   Inability capacity

C.   Ineffectuality capacity

D.   Actual capacity

2: A limit or constraint on the workflow in an operation is known as

A.   Bottleneck

B.   Capacity

C.   Actual output

D.   Capacity efficiency

3: Capacity is the maximum amount of _____ an operation is capable of producing in a given time period

A.   Output

B.   Input

C.   Input & output

D.   None of these

4: Capacity control Analyzing a facility’s existing capacity relative to its weekly production schedules, also called capacity planning in the short term

A.   True

B.   False

5: The extra capacity added in anticipation of future increases in demand for products and services is known as

A.   Capacity efficiency

B.   Capacity gap

C.   Capacity cushion

D.   Capacity planning

6: Capacity efficiency is being used to produce

A.   Actual Storage

B.   Actual input

C.   Actual output

D.   None of these

7: The difference between the capacity required and capacity available is known as

A.   Capacity efficiency

B.   Capacity gap

C.   Capacity cushion

D.   Capacity planning

8: Which process of determining the capacity that an operations system will need to meet demand effectively ?

A.   Capacity efficiency

B.   Capacity gap

C.   Capacity cushion

D.   Capacity planning

9: CRP is stands for

A.   Corporate responsibility Planning

B.   Capacity requirements planning

C.   Conference Room planning

D.   None of these

10: Capacity utilization measure of the extent to which the capacity designed and installed is actually used

A.   True

B.   False

11: Capacity-reservation contract is an agreement where the manufacturer has the option of _______ additional production capacity with the supplier to be exercised in the future as needed

A.   Reserving

B.   Forward

C.   Unidirectional

D.   None of these

12: ______ is a process, or a manufacturing or service facility that is producing under ideal conditions

A.   Design capacity

B.   Diseconomies of scale

C.   Effective capacity

D.   Economies of scale

13: Which statement is correct about Diseconomies of scale?

A.   A decrease in the cost per unit of output as the volume of output increases

B.   Increase in the volume of output beyond a point at which the cost per unit increases

C.   Capacity that can be achieved given the actual changes in product mixture, machines

D.   A set of standards and practices that allows companies geographically dispersed around the globe to share information

14: In economies of scale a decrease in the cost per unit of output as the volume of ______

A.   Output increases

B.   Output decreases

C.   No Effect input/output

D.   Small Effect on Input

15: Effective capacity achieved given the actual changes in product mixture, machines

A.   True

B.   False

16: A set of standards and practices that allows companies geographically dispersed around the globe to share information.This statement True for

A.   Lagging strategy

B.   Global platform

C.   Leading strategy

D.   None of these

17: Lagging strategy increasing capacity only when there is a sizeable _____

A.   Increase in demand

B.   Decrease in demand

C.   No demand

D.   Both a & b

18: Which process of increasing capacity in anticipation of future increases in demand for products or services?

A.   Lagging strategy

B.   Global platform

C.   Leading strategy

D.   Level capacity plan

19: The process of producing products at a steady rate and then storing them until they are demanded is known as

A.   Lagging strategy

B.   Global platform

C.   Leading strategy

D.   Level capacity plan

20: Matching strategy is the process of ______ in small increments to keep pace with increases in demand

A.   Decreasing capacity

B.   Constant capacity

C.   Increasing capacity

D.   Idea capacity

21: Revenue-sharing contract is an agreement where the supplier and the buyer or manufacturer share the revenue generated from the sale of the products

A.   True

B.   False

22: RCCP stands for

A.   Rough Cut Capacity Planning

B.   Rough Certified Compensation Professional

C.   Reversible Center for Communication Program

D.   Both a & b

23: The process of capacity planning for the long term that requires managers to forecast demand over several years is known as

A.   Lagging strategy

B.   Global platform

C.   Leading strategy

D.   Strategic capacity planning

A.   Lagging strategy

B.   Work center

C.   Leading strategy

D.   Strategic capacity planning

25: ______ is the maximum rate of output achieved by an operation, a process, or a manufacturing or service facility that is producing under ideal conditions.

A.   Bottleneck

B.   Design capacity

C.   Effective capacity

D.   Capacity limit

A.   Quality control

B.   Sustainability

C.   Total quality management

D.   Strategic capacity planning

27: ______ is a measure of how well the available effective capacity is being used to produce the actual output.

A.   Capacity efficiency

B.   Capacity utilization

C.   Capacity gap

D.   Capacity cushion

A.   Capacity planning

B.   Strategic capacity planning

C.   Capacity requirements planning

D.   Rough-cut capacity planning

29: A ______ is a set of standards and practices allowing companies geographically dispersed around the globe to share information, developments, products and components, payment methods, and other relevant information.

A.   Matching strategy

B.   Revenue sharing contract

C.   Global platform

D.   Leading strategy

30: ______ is the process of producing products at a steady rate and then storing them until they are demanded.

A.   Leading strategy

B.   Economies of scale

C.   Level capacity plan

D.   Lagging strategy

31: ______ is analyzing a facility’s existing capacity relative to its weekly production schedules, also called capacity planning in the short term.

A.   Capacity planning

B.   Strategic capacity planning

C.   Capacity control

D.   Rough-cut capacity planning

32: ______ is the process of doing a more detailed comparison of the available capacity and required capacity by projecting your resource requirements for labor, equipment, and so forth.

A.   Capacity planning

B.   Strategic capacity planning

C.   Capacity requirements planning

D.   Rough-cut capacity planning

33: ______ is the process of determining the capacity that an operations system will need to effectively meet this demand.

A.   Capacity planning

B.   Strategic capacity planning

C.   Capacity requirements planning

D.   Rough-cut capacity planning

34: ______ is a decrease in the cost per unit of output as the volume of output increases.

A.   Economies of scale

B.   Diseconomies of scale

C.   Capacity efficiency

D.   Capacity gap

35: ______ is a decrease in the cost per unit of output as the volume of output increases.

A.   Economies of scale

B.   Diseconomies of scale

C.   Capacity efficiency

D.   Capacity gap

36: ______ is the extra capacity added in anticipation of future increases in demand for products and services.

A.   Level capacity plan

B.   Capacity gap

C.   Capacity cushion

D.   Economies of scale

37: ______ is the maximum rate of output achieved by an operation, a process, or a manufacturing or service facility that is producing under ideal conditions.

A.   Capacity efficiency

B.   Economies of scale

C.   Effective capacity

D.   Design capacity

38: ______ is the process of increasing capacity in anticipation of future increases in demand for products or services.

A.   Capacity utilization

B.   Leading strategy

C.   Capacity cushion

D.   Matching strategy

A.   Capacity control

B.   Work center

C.   Bottleneck

D.   Strategic capacity planning