Capacity Management Quiz

Managing capacity is only a short-term consideration in operations strategy.

• True

• False

Effective capacity is usually lower than design capacity due to operating constraints.

• True

• False

Utilization is the percentage of effective capacity achieved.

• True

• False

Design capacity is the maximum theoretical output of a system, expressed as a rate.

• True

• False

Capacity decisions do not need to be integrated into the organization's mission and strategy.

• True

• False

Accurate forecasting in both short and long term is crucial for efficient capacity development.

• True

• False

Investing in technology that will soon become obsolete is a good strategy.

• True

• False

Finding the optimal operating size is important to avoid diseconomies of scale.

• True

• False

Seasonal promotions can help balance out demand fluctuations.

• True

• False

Cross-training staff can increase flexibility in managing demand changes.

• True

• False