Capacity Planning

Question 1

What is the focus of Section 8.2?

Answer 1

Economies and Diseconomies of Scale

This section discusses the advantages and disadvantages of scaling production.

Question 2

What are critical capacity decisions?

Answer 2

Decisions related to the amount of production capacity needed to meet demand

These decisions impact operational efficiency and resource allocation.

Question 3

What does capacity measurement entail?

Answer 3

Assessing the maximum output an organization can produce in a given timeframe

Important for understanding production capabilities.

Question 4

What is involved in establishing capacity?

Answer 4

Determining the appropriate level of capacity to meet current and future demand

This includes analyzing market trends and production processes.

Question 5

What is the purpose of strategy formulation for capacity planning?

Answer 5

To create a plan that aligns production capacity with business goals and market demand

Essential for effective resource management.

Question 6

What does capacity needs prediction involve?

Answer 6

Forecasting future capacity requirements based on demand trends

This helps in proactive capacity management.

Question 7

What is constraint management?

Answer 7

Identifying and addressing limitations that hinder production efficiency

Focuses on optimizing resource use and workflow.

Question 8

What does developing alternative capacity plans refer to?

Answer 8

Creating different strategies to meet production demands under varying conditions

This allows organizations to remain flexible and responsive.

Question 9

Fill in the blank: The introduction section is marked as _______.

Answer 9

8.1 Introduction

Question 10

True or False: Economies of scale refer to the cost advantages that a business obtains due to the scale of operation.

Answer 10

True