Effective capacity is: Multiple Choice a. also called theoretical capacity. b. base capacity plus time for maintenance, breaks, and absenteeism. c. the amount of capacity that can be used in planning for actual output. d. All of these choices are correct.
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- Explain and expand these importance of capacity planning. 1. Capacity decisions have a real impact on the ability of the organization to meet future demands for products and services. 2. Capacity decisions affect operating costs. 3. Capacity is usually a major determinant of initial cost. Typically, the greater the capacity of a productive unit, the greater its cost.a. what is the relationship between design capacity, system capacity, and actual output. b. how is a projected output within the boundaries of the design capacity and system capacity?True or False: "Capacity planning is concerned with determining the maximum output an organization can achieve within a given period."
- Which the following is a measure of the reserve capacity, a process has to handle among in unexpected increases in demand a. Capacity cushion b. Capacity bottleneck c. Capacity limit d. Capacity PlanningCapacity planning are strategic decisions, because: a. Impact organizations ability to meet future demands b. Affect operating costs cDo not involve long-term commitment of resources d. Cannot affect competitiveness e. Alternatives a) and b) are both correctWhat do you understand by capacity planning? Explain the decision tree modeling for capacity expansion
- Effective capacity is:a) the capacity a firm expects to achieve, given the currentoperating constraints.b) the percentage of design capacity actually achieved.c) the percentage of capacity actually achieved.d) actual output.e) efficiency.1. What factors should be considered when selecting the appropriate capacity cushion? Howdoes the choice of capacity cushion relate to other decisions in operations management?To other functional areas? 2. Capacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?Reserve capacity is a general consideration for any manufacturing or service enterprises. Which among the following is a measure of the reserve capacity which handles unexpected increases in demand O a. Capacity cushion O b. Capacity bottleneck Capacity limit O d. Capacity Planning
- 1. Capacity refers to the productive capability of a system. What is the difference between design capacity and effective capacity? 2. What are "Utilization" and "Efficiency" in a system? Provide working formulas for these values. 3. A classroom has a design capacity of 80 seats and an effective capacity of 65 seats. If 40 students attend a class held at that location. (NoteShaper #14 & #15) What is the utilization of the classroom? What is the efficiency of the classroom?IIn a job shop, effective capacity is only 69 percent of design capacity, and actual output is 76 percent of effective output. What design capacity would be needed to achieve an actual output of 13 jobs per week? What is its effective capacity? a. The Design Capacity needed to achieve the required actual job outputs =Blank 1 (round to whole number) b. The Effective Capacity needed to achieve the required actual job outputs = Blank 2 (round to whole number) Blank 1 Blank 2 Add your answer Add your answerMichele Platini and Diego Maradona, planners for a company that makes several models of footballs are about to prepare the capacity plan that will cover six periods. They have assembled the following information. Period 1 2 3 4 5 6 Total Forecast 250 300 350 400 500 250 2,050 They intend to start with zero inventory on hand in the first period, and their production rate is 300 units per period. Use overtime at a fixed rate of 15 units per period as needed. Use subcontracting at a maximum rate of 50 units per period if needed. Plan for an ending inventory of zero for period 6. Backorders cannot exceed 60 units per period. Compute the total cost of the plan. a) Prepare the capacity plan as below using the level strategy. Period 1 2 … 6 Total Forecast Production: Regular … Overtime … Subcontracting … Output-Forecast…