Operations Management 6th Edition By Stuart Chambers – Test Bank

Overview

Multiple Choice Questions

Choose the one alternative that best completes the statement or answers the
question.

1) What is meant by the term capacity? 
A) The amount of work normally undertaken over a period of time.
B) The limit of output over a period of time.
C) Maximum level of demand experienced over a period of time.
D) Maximum level of value added activity over a period of time.
Answer: D
Explanation: A) B) C) D) Page Ref: Topic: 2)

2)The following figures were reported at a management meeting for the kitchen facility of a
restaurant: actual output was 62 hours, design capacity is 150 hours, and the effective
capacity was 120 hours. What are the kitchen facility’s utilisation and efficiency respectively?
A) 0.54 & 0.68
B) 0.41 & 0.52
C) 0.38 & 0.41 |
D) 0.63 & 0.57
E) 0.48 & 0.63
Answer: B
Explanation: A) B) C) D) E) Page Ref: Topic: 1

3) Utilisation is: 
A) Actual output/effective capacity
B) Uptime/Effective capacity
C) Downtime/Effective capacity
D) Actual output/design capacity
Answer: D
Explanation: A) B) C) D) Page Ref: Topic:

4) Which of the following is NOT a measure of utilisation?
A) Room occupancy level in hotels.
B) Number of hours available for production.
C) Uptime in a factory.
D) Load factor for aircraft.
Answer: B
Explanation: A) B) C) D) Page Ref: Topic:

5) What is meant by yield management? 
A) Encouraging growth in demand during periods of low demand and restraining it during
periods of high demand.
B) Overbooking capacity to ensure that all capacity is filled at all times.
C) The maximisation of profit through capacity, demand and pricing policies.
D) Expanding the operation at periods of high demand in order to yield more sales revenue.
Answer: C
Explanation: A) B) C) D)

6) If the long-term outlook is poor and the short-term outlook is poor, the operation should: 
A) Lay off staff
B) Hire and make for inventory, start to recruit
C) Hire staff
D) Make for inventory/adopt short time
E) Adopt short time/idle time F) Overtime/hire temporary workers
Answer: A
Explanation: A) B) C) D) E) F)

7) If the long-term outlook is good, but the short-term outlook is poor, the operation should: 
A) Overtime/hire temporary workers
B) Lay off staff
C) Make for inventory/adopt short time
D) Adopt short time/idle time
E) Hire staff
F) Hire and make for inventory, start to recruit
Answer: C
Explanation: A) B) C) D) E) F)

8) If the long-term outlook is good, but the short-term outlook is normal, the operation should:
A) Hire staff
B) Make for inventory/adopt short time
C) Lay off staff
D) Hire and make for inventory, start to recruit
E) Adopt short time/idle time
F) Overtime/hire temporary workers
Answer: D
Explanation: A) B) C) D) E) F) Page Ref: Topic:

9) Are the number of beds available in a hospital an input or output capacity measure.
A) Input measure of capacity
B) Output measure of capacity
Answer: A
Explanation: A) B) Page Ref: Topic:

10) Are the number of litres of beer produced by a brewery an input or output capacity measure.
A) Input measure of capacity
B) Output measure of capacity
Answer: B
Explanation: A) B)