Question

29. A major difference between facilities planning and scheduling is that:
A. Facilities planning refers to long-range capacity plan and scheduling refers to short-range capacity plan.
B. Facilities planning is concerned with allocating available resources and scheduling with the acquisition of resources.
C. Facilities planning refers to medium-range resource requirement and scheduling refers to long-range capacity requirement.
D. None of the above.

30. Suppose the cost of not having adequate capacity is very high. What type of capacity cushion strategy is a company likely to use in this situation?
A. Small cushion
B. Large cushion
C. Moderate cushion
D. None of the above

31. ______ is the percentage of actual output to available capacity (i.e., maximum capacity).

A. Small capacity cushion

B. Capacity utilization

C. Peak capacity

D. Only (A) and (C) above.

32. Which of the following statement(s) is NOT correct about aggregate planning?
A. Aggregate planning is appropriate for planning capacity both in manufacturing and service operations.    
B. Aggregate planning seeks to meet the required demand at the minimum possible cost.
C. The aim of aggregate planning is to set overall long-term output level in the face of fluctuating or uncertain demand.
D. Both (a) and (b) above

33. In using a level strategy of aggregate planning demand is met by:
A. Changing production level to match demand as needed.
B. Using overtime or subcontracting.
C. Producing at a constant rate and using inventory to absorb fluctuations in demand.
D. (A) and (B)

34. ____ is a factor that should be considered in facilities decisions?
A. Cost of facilities
B. Volume of the product or service to be produced

C. Likely behavior of competitor
D. Whether the company uses make-to-stock or assemble-to-order

E. All of the above except (D).

Answer 1

29. (A)

30. (A) small cushion- A small or nearly zero capacity cushion is planned to maximize utilization; appropriate when capacity is very expensive, relative stock outs.

31. (B) Capacity utilization gives the clear idea of total utilization of resources and how better the production company can fare in case the total output is increased without it affecting the cost of production to the company.

32. (C) The aim of aggregate planning is to set overall near to medium term output level in the face of fluctuating or uncertain demand.

33. (D) i.e Both (A) and (B) Changing production level to match demand as needed and overtime or subcontracting.

34. (E) All of the above except D