Capacity in Business

What does capacity management aim to achieve under all conditions?

• Maximum employee satisfaction

• Maximum production efficiency

• Minimum production costs

• Minimum use of resources

Which of the following is NOT a capacity management strategy listed in the document?

• Lead strategy

• Lag strategy

• Match strategy

• Push strategy

Which of the following strategies is proactive in nature?

• Lead strategy

• Lag strategy

• Match strategy

• Dynamic strategy

What does MRP stand for in the context of inventory management?

• Manufacturing Resource Planning

• Material Requirements Planning

• Management Resource Planning

• Material Resource Planning

How does MRP II improve supplier relationships?

• By requiring business change

• By being expensive

• By improving scheduling

• By fostering productive relationships with suppliers

What is a disadvantage of MRP II regarding flexibility?

• Improved cash flow due to quicker deliveries

• Limited flexibility to respond to short-term fluctuations

• Better quality and quality control

• Reduced working capital needed

What is the department that produces 60 items per hour?

• It is the fastest machine

• It is the bottleneck

• It is the most efficient machine

• It is the least important machine

Which of the following is a strategy to manage a bottleneck?

• Increase the speed of the bottleneck machine

• Decrease the speed of all machines

• Ignore the bottleneck

• Add more bottlenecks

What type of asset is inventory classified as?

• Current asset

• Capital asset

• Intangible asset

• Fixed asset

Which of the following is NOT typically considered an intangible asset?

• Trademarks

• Reputation

• Cash

• Patents