1. Operations Strategy

Capacity Strategy — Quiz

Test your understanding of capacity strategy with 5 practice questions.

Practice Questions

Question 1

Which of the following is an example of a medium-term capacity decision in operations management?

Question 2

Given a production facility operating two shifts per day of 8 hours each with a 30-minute break per shift, 20 working days in a month, a scheduled maintenance downtime of 10 hours per month, and a design rate of 50 units per hour, what is the facility's effective monthly capacity?

Question 3

Under which operational condition should a firm maintain a high capacity cushion?

Question 4

Which capacity strategy involves adding capacity in anticipation of future demand before it materializes, thereby reducing the risk of stockouts but risking higher idle capacity?

Question 5

Which of the following capacity planning decisions is typically considered a long-term decision?