Utilization is the ratio of what variable to effective/peak capacity? Weekly out
ID: 470230 • Letter: U
Question
Utilization is the ratio of what variable to effective/peak capacity?
Weekly output
Average output
Minimum output
Maximum output
Desired output
The maximum output rate a process can achieve in the short-term ideal conditions refers to
Peak capacity
Average capacity
Effective capacity
Minimum capacity
Economic capacity
How does economy of scale result in an increase in effective capacity?
Because average inventory levels are decreased
Because quantity discounts will be less
Because setup time will be increased
Because more time will be spent processing instead of setting up
Because fewer managers are needed
What term describes the situation when the costs associated with a company increasing in size outweigh the benefits
Peak capacity
Economies of scale
Capacity strategy
Effective capacity limit
Dis-economies of scale
When is an aggressive expansion strategy most advantageous?
In a steady market
In a declining market
In a dominant market
In a competitive market
In a growing market
The amount of capacity that is unused on average refers to what term?
Capacity factor
Outsourced capacity
Peak capacity
Capacity cushion
Effective capacity
Explanation / Answer
1. Maximum output
Utilization is calculated considering the maximum output that system has reached
2. Peak capacity
Peak capacity sustained only for short time
3. Because more time will be spent processing instead of setting up
As set up time is one time activity thus maximum time is utilized in processing which result in increasing productivity.
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