PRE-TEST page 1 of 2

Name: E#: Date:

1. Insert the missing words in the following state- a) true demand scheduling
ment. b) true capacity scheduling
The capacity of the organization may be defined as c) true operations scheduling
its ____________ to undertake the ___________
demanded by its ___________ 10. All of the following make queuing a more positive
experience except:
a) capacity, demand, users
a) Entertaining the queue
b) ability, work, users
c) capacity, orders, dealers b) Informing the queue of the duration of the waiting
time
2. Where one process supplies another process this c) Allowing queue jumping
is situation of independent demand. True or
false? d) Avoiding solo waiting
a) True
11. Which of the following is not an objective of
b) False scheduling:

3. The general direction of the demand pattern is a) Providing excess capacity

called its trend. b) Ensuring on-time delivery
a) True c) Providing optimum efficiencies
b) False d) Balancing cash flow

4. Seasonality may only occur at quarterly periods. 12. Which are the followings is not true.

a) True a) Forecasting can be assumed by causal system,

i.e., past ==> future
b) False
b) Forecasts rarely perfect because of randomness
5. Which mean absolute deviation shows the most
c) Forecasts more accurate for individuals compared
accurate forecast:
to groups
a) The lowest mean absolute deviation
d) Forecast accuracy decreases as time horizon or
b) The highest mean absolute deviation
planning horizon increases
6. Organizations should always plan to:
13. A forecasting techniques uses subjective inputs
a) Exceed expected demand is known as:
b) Keep capacity below demand a) Judgmental
c) Match capacity to demand exactly b) Time-series
d) Adopt the level of capacity which seems to best fit c) Associative forecasts
the situation
14. Qualitative forecasting methods uses an underly-
7. Level capacity means: ing mathematical model to arrive at a forecast.
a) Adjusting capacity to follow demand a) True
b) Keeping capacity fixed b) False
c) Always having too much capacity
15. Moving average forecasting assumes that the
8. Modifying the output has little to offer as a way of time series has only a level component plus a
managing capacity better. random component.

a) True a) True
b) False
b) False

9. Insert the missing words in the following state-

ment.

The task of allocating people to processes in order

to get the work done is known as
________________________________________.
PRE-TEST page 2 of 2

Name: E#: Date:

16. The capacity planning is determined by, except: 24. The followings are the strategies to meet non-
c) the size of the physical facilities uniform demand, except

d) the numbers of the employees in the operations a) Absorbing demand fluctuations by varying inven-
tory levels or allowing backlogs
e) the location of the operations
b) Change production according to demand
17. Capacity planning is deciding on the optimum c) Lay-off when demand increases
output rate of a facility.
d) Hire additional personnel when demand increases
a) True
b) False 25. Capacity requirement planning is concerned with
determining the following requirement for a
18. Break-even analysis can be used for location ______________________
analysis especially when the costs of each loca- a) Master Production Schedule
tion are known.
b) Material Requisition Planning
a) True
c) Material Production Planning
b) False
d) Material Production Schedule
19. __________ costs are the costs that continues
even if no units are produced and ___________ 26. Where the cost per unit of output drops as vol-
costs are those that vary with the volume of units ume of output increases is known as
produced.
a) Economies of Scale
a) Variable, fixed b) Diseconomies of Scale
b) Fixed, variable c) Economies of Capacity
d) Diseconomies of Capacity
20. The center of gravity method is used to find a
location that: 27. Efficiency capacity is defined as
a) minimizes the sum of transportation cost in be- a) a measure of actual input over effective capacity.
tween new facility and old facilities
b) maximizes the sum of transportation cost in be- b) a measure of actual output over effective capacity.
tween new facility and old facilities c) a measure of actual output over design capacity.
c) minimizes the sum of unit cost manufactured be-
d) a measure of actual input over design capacity.
tween new facility and old facilities
d) maximizes the sum of unit cost manufactured 28. Design capacity is defined as
between new facility and old facilities
a) Minimum output rate under ideal conditions
21. Organizations should always plan to: b) Maximum output rate under ideal conditions
a) Exceed expected demand c) Minimum output rate under normal conditions
b) Keep capacity below demand d) Maximum output rate under normal conditions
c) Match capacity to demand exactly 29. Effective capacity is defined as
d) Adopt the level of capacity which seems to best fit
the situation a) Minimum output rate under ideal conditions
b) Maximum output rate under ideal conditions
22. _________________ is the process of identifying c) Minimum output rate under normal conditions
the best geographic location for a service or pro-
duction facility d) Maximum output rate under normal conditions

a) Facility distance analysis 30. Capacity planning and location decisions are of-
ten made at the same time because they are
b) Facility location analysis
inter-related.
c) Facility set-up analysis
a) True
23. Decision tree analysis utilizes expected value b) False
analysis (EVA).
a) True
b) False