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- The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of labor-intensive resources. False
- Best operating level is the volume of output at which average unit cost is minimized. True
- Overtime and personnel transfers are solutions to capacity problems in the intermediate term. False
- Capacity flexibility means having the ability to rapidly increase or decrease production levels, or to shift production capacity quickly from one product or service to another. True
- A production facility works best when it focuses on a fairly limited set of production objectives. True
- Low rates of capacity utilization in service organizations are never appropriate. False
- If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rat
...e of 400 units per hour, which of the following is the capacity utilization rate? 1. 25
- Compared with a service operation, a manufacturing operation's capacity is which of the following? Demand can be smoothed by inventory policies
- One difference between an assembly line process flow and a continuous process flow is that on the assembly line the flow is discrete rather than continuous. True
- The choice of which process structure to select is generally a function of the volume requirements for the product. True
- If the sum of the task times required to produce a product is 45 minutes and the cycle time for the same product is 10 minutes. Thus, the theoretical minimum number of workstations is 5 using the assembly-line balancing procedure. True
- The first step in balancing an assembly line is to specify the precedence relationships among tasks to be
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performed on the line. False
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