Input Measures Include Such Metrics As

Question: Long term capacity plans deal with:

Answer: investments in new facilities.

Question: Long term capacity decisions that confront managers include all of the following except:

Answer: workforce size.

Question: Regarding the measurement of capacity, when a firm provides a relatively small number of standardized products and services:

Answer: output measures are typically used.

Question: Input measures include such metrics as:

Answer: the number of machine hours available.

Question: The degree to which equipment, space, or labor is being used is commonly referred to as:

Answer: utilization.

Question:

Answer: 73%

Question:

Answer: 10 tons/day

Question: Use Output Measures when:

Answer: -process has high volume and the firm makes a small number of standardized products (mass production)

Question: Use Input Measures when:

Answer: -product variety and divergence is high

-the product or service mix is changing

-productivity rates are expected to change

-significant learning effects are expected

Question: Economies of Scale

Answer: -spreading fixed costs

-cutting costs of purchased materials

-finding process advantages