MGT 3332 Chapter 5

(T/F) Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations.

False

(T/F) The term capacity refers to the maximum quantity an operating unit can process over a given period of time.

True

Unbalanced systems are evidenced by:

bottleneck operations.

Which of the following would tend to reduce effective capacity?

greater variety in the product line

Given the following information, what would efficiency be?
Effective capacity = 50 units per day
Design capacity = 100 units per day
Actual output = 30 units per day

60%

Given the following information, what would efficiency be?
Effective capacity = 80 units per day
Design capacity = 100 units per day
Utilization = 48 percent

60%