Capacity planning MCQs in Supply Chain

Capacity Planning MCQs

What is the primary goal of capacity planning in supply chain management?
a) To design new products
b) To ensure that production facilities and resources are capable of meeting future demand
c) To manage supplier relationships
d) To forecast future sales
Answer: b) To ensure that production facilities and resources are capable of meeting future demand
Which of the following is a key component of capacity planning?
a) Demand forecasting
b) Supplier management
c) Product design
d) Marketing strategy
Answer: a) Demand forecasting
What does “Aggregate Planning” refer to in capacity planning?
a) Planning the overall production capacity required to meet demand over a specific period
b) Designing new production facilities
c) Managing inventory levels
d) Forecasting sales for individual products
Answer: a) Planning the overall production capacity required to meet demand over a specific period
Which capacity planning strategy involves increasing production capacity to meet anticipated future demand?
a) Lead Strategy
b) Lag Strategy
c) Match Strategy
d) Chase Strategy
Answer: a) Lead Strategy
What is the “Chase Demand Strategy” in capacity planning?
a) Increasing production capacity to stay ahead of demand
b) Adjusting production rates to match fluctuations in demand
c) Maintaining constant production rates regardless of demand
d) Reducing production capacity to minimize costs
Answer: b) Adjusting production rates to match fluctuations in demand
Which term describes the maximum output that a production facility can achieve under ideal conditions?
a) Effective Capacity
b) Design Capacity
c) Actual Capacity
d) Planned Capacity
Answer: b) Design Capacity
What is “Effective Capacity”?
a) The maximum output that can be achieved with current resources
b) The theoretical maximum output of a production facility
c) The actual output achieved in a given period
d) The capacity planned for future production
Answer: a) The maximum output that can be achieved with current resources
What does “Capacity Utilization” measure?
a) The efficiency of production processes
b) The proportion of actual output to potential output
c) The cost of production
d) The level of employee productivity
Answer: b) The proportion of actual output to potential output
Which technique is used to determine the optimal capacity needed to meet future demand while minimizing costs?
a) Linear Programming
b) Economic Order Quantity (EOQ)
c) Simulation Modeling
d) Statistical Process Control (SPC)
Answer: a) Linear Programming
What is the “Lag Strategy” in capacity planning?
a) Increasing capacity in anticipation of future demand
b) Adjusting capacity only after a significant increase in demand is observed
c) Maintaining a constant capacity regardless of demand fluctuations
d) Reducing capacity to lower costs
Answer: b) Adjusting capacity only after a significant increase in demand is observed
Which factor is NOT typically considered in capacity planning?
a) Production lead time
b) Market demand
c) Supply chain costs
d) Employee training programs
Answer: d) Employee training programs
What does “Capacity Planning for Service Operations” involve?
a) Planning the physical production facilities required to meet demand
b) Planning the human resources and service delivery capabilities required to meet customer demand
c) Forecasting material needs for production
d) Designing new service offerings
Answer: b) Planning the human resources and service delivery capabilities required to meet customer demand
Which capacity planning approach focuses on long-term decisions regarding facility size and location?
a) Strategic Capacity Planning
b) Tactical Capacity Planning
c) Operational Capacity Planning
d) Short-Term Capacity Planning
Answer: a) Strategic Capacity Planning
What is the “Match Strategy” in capacity planning?
a) Increasing capacity to match anticipated future demand
b) Adjusting capacity incrementally to keep pace with changes in demand
c) Maintaining constant production rates regardless of demand
d) Reducing capacity to align with reduced demand
Answer: b) Adjusting capacity incrementally to keep pace with changes in demand
Which of the following is a common method for evaluating capacity requirements?
a) PERT Analysis
b) Critical Path Method (CPM)
c) Simulation Analysis
d) Capacity Requirement Planning (CRP)
Answer: d) Capacity Requirement Planning (CRP)
What does “Resource Planning” involve in the context of capacity planning?
a) Identifying and managing the resources needed to meet production goals
b) Forecasting future sales
c) Designing production processes
d) Scheduling employee shifts
Answer: a) Identifying and managing the resources needed to meet production goals
What is the purpose of “Capacity Buffer” in production planning?
a) To increase production capacity beyond what is currently needed
b) To create a safety margin to handle unexpected demand spikes or disruptions
c) To reduce production capacity to save costs
d) To allocate resources for new product development
Answer: b) To create a safety margin to handle unexpected demand spikes or disruptions
What does “Capacity Adjustment” involve?
a) Making changes to production processes to improve efficiency
b) Increasing or decreasing production capacity based on current and future demand
c) Adjusting inventory levels to meet demand
d) Redesigning production facilities
Answer: b) Increasing or decreasing production capacity based on current and future demand
Which term describes the practice of using temporary or additional resources to handle peak production periods?
a) Outsourcing
b) Peak Shaving
c) Flexible Capacity
d) Capacity Smoothing
Answer: c) Flexible Capacity
What is the main benefit of “Demand Forecasting” in capacity planning?
a) To design new products
b) To ensure that the right amount of capacity is available to meet future demand
c) To manage supplier relationships
d) To schedule employee shifts
Answer: b) To ensure that the right amount of capacity is available to meet future demand

Capacity planning MCQs in Supply Chain

Capacity Planning MCQs

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