Question 1

Which capacity planning measurement tells how much capacity a company is using?

Options :

A : Design capacity

B : Effective capacity

C : Capacity focus

D : Capacity utilization

Answer: D

Question 2

Which element is part of a financial plan?

Options :

A : Budget projections

B : SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis

C : Product pricing

D : Compensation planning

Answer: A

Question 3

How does the status of overall customer satisfaction support supply chain objectives?

Options :

A : It measures space requirements.

B : It measures efficiency.

C : It measures compliance.

D : It measures capacity utilization.

Answer: B

Question 4

A company suddenly finds demand has increased to 140% of its previous capacity. It has been able to hire only a fraction of the employees previously laid off, and a warehouse fire destroyed 80% of its inventory. Which two options does the company have to rapidly meet the new demand? Choose 2 answers

Options :

A : Hire temporary workers

B : Build new production facilities

C : Subcontract a portion of production capacity

D : Hire and train new full-time employees

Answer: A,C

Question 5

Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark?

Options :

A : Time a resource is used / time a resource is available

B : Actual output / standard output

C : Throughput time / value-added time

D : Output / input

Answer: B