3. Operations
Capacity Planning — Quiz
Test your understanding of capacity planning with 5 practice questions.
Practice Questions
Question 1
Which of the following factors can help a business increase its effective capacity in the long term?
Question 2
A company is considering adding a second shift to its production schedule. Which of the following best explains how this strategy impacts capacity utilisation?
Question 3
Which of the following is a potential consequence of over-capacity in the long term?
Question 4
A business has a current output of 1,500 units per month and a maximum capacity of 2,000 units per month. If it plans to increase its output by 20%, what will its new capacity utilisation be?
Question 5
Which of the following strategies can help a business manage fluctuating demand in the short term?