3. Operations
Capacity Planning — Quiz
Test your understanding of capacity planning with 5 practice questions.
Practice Questions
Question 1
Which of the following describes a situation where a business's actual output is significantly lower than its maximum possible output?
Question 2
A manufacturing company has a maximum production capacity of $500$ units per day. If it currently produces $400$ units per day, what is its capacity utilization rate?
Question 3
Which of the following is a potential long-term consequence of a business consistently operating with underused capacity?
Question 4
A popular restaurant often has a waiting list during peak dinner hours. Which short-term strategy could the restaurant implement to manage this overused capacity?
Question 5
What is the primary reason a business might choose to operate with some spare capacity rather than at $100\%$ utilization?