Exam (elaborations)
ISDS Exam 2 Chapter S7 Questions And Correct Answers
- Course
- Institution
ISDS Exam 2 Chapter S7 Questions And Correct Answers ...
[Show more]
Content preview
ISDS Exam 2 Chapter S7 Questions And CorrectAnswers 2024-2025
What does the term rated capacity sometimes refer to? - ANSWER d. expected output
Effective capacity is the - ANSWER b. capacity a firm expects to achieve given the
current operating constraints
Which of the following would be considered an aggressive strategy in the demand
management of a service
where demand and capacity are not especially well matched? - ANSWER a. cheap rates
for weekend phone calls
c. Which of the following is a common way to manage capacity in the service sector?
ANSWER c. changes in staffing levels
If the demand for an organization's product or service exceeds the capacity of a new
facility, which of the following can be used to shift the demand to an existing facility?
ANSWER a. aggressive marketing
Adding a complementary product to what is currently being produced is a demand
management
strategy used when - ANSWER c. the existing product has seasonal or cyclical demand
An organization whose capacity is on that portion of the average unit cost curve that
falls as output
rises - ANSWER a. has a facility that is below optimum operating level and should build a
larger facility
, Of the four approaches to capacity expansion, the approach that "straddles" demand
a. uses incremental expansion
b. uses one-step expansion
c. in some periods leads demand, and in other periods lags
d. is most effective when demand is not growing, but is stable
e. Both a and c are correct.- ANSWER e. Both a and c are correct.
What are the four strategies for capacity expansion?- ANSWER a. average capacity with
incremental expansion
b. lead demand with incremental expansion
c. lag demand with incremental expansion
d. lead demand with one-step expansion
Which of the following is not true about capacity expansion?
a. "Average" capacity sometimes leads demand, sometimes lags it.
b. If "lagging" capacity is selected, excess demand can be met with overtime or
subcontracting.
c. Total cost comparisons are a fairly direct way of comparing the capacity alternatives.
d. Capacity can only be added in large chunks.
e. All of the above are true. - ANSWER d. Capacity can only be added in large chunks.
Break-even is the number of units at which - ANSWER e. total revenue equals total cost
Fixed Costs: - ANSWER are ordinarily constant w.r.t. volume, they can "step" upward if
volume increases result in additional fixed costs.
Which of the following costs would be incurred even if no units were produced? -
ANSWER d. building rental costs
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Easton. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79976 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now