Question

1. Facilities planning refers to:

A. Medium-range capacity decisions

B. Have no impact on other capacity decisions

C. Are long-term in nature.

D. Require planning for one year or less

2. Under exponential smoothing, if we want the forecast for the next period to be closer

to current period actual demand, the value of alpha (a) should be:

A. Large (close to 1.0)
B. Small (close to zero)
C. Zero
D. The value of alpha will have no impact on the forecast.

3. Which of the following statements is true?

1. Emphasizing appraisal and prevention often results in higher cost of quality management.
2. When a company invests in quality improvement the likely outcome is increased profitability and competitiveness.  

A. Only statement I is correct.

B. Only statement II is correct.

C. Both statements are correct.

D. Both statements are incorrect

4. Which of the following statements regarding capacity is NOT correct?
A. Capacity can be measured in several units such as hours of output, number of units produced, number of customers served, etc.
B. Capacity requirement is measured in terms of long-term, intermediate period and short-term.
C. Capacity is the maximum output that could be produced over a specific period of time.
D. All of the above are correct.

Answer 1

1. Facilities planning refers to:

Are long-term in nature. Because it is done for the initial setup for the organisation or factory, so it is usually long term

2. Under exponential smoothing, if we want the forecast for the next period to be close to current period actual demand, the value of alpha (a) should be:

close to zero - as alpha is a smoothing constant , hence if the future value of of the forecast is closer to the present value the alpha will be closer to zero and vice versa.

3. Which of the following statements is true?

Both statements are correct. Emphasizing appraisal and prevention often results in higher cost of quality management because looking anything in depth and establishing control factors lead to extra effort . Also when quality improves production improves which results in good material availability for sales to increase revenue and profit.s

4. Capacity can be measured in several units such as hours of output, number of units produced, number of customers served, etc.

all of the above are correct.

4.