1. Which of the following statements is not true about capacity management in operations? A. When looking at capacity, operations managers need to look at both resource input and product outputs. B. An operations management view also emphasizes the time dimension of capacity. C. Capacity planning itself has different meaning to individuals at different levels within the operations management hierarchy. D. The definition of capacity, in an operations management context, makes a clear distinction between efficient and inefficient use of capacity.

A, B, and C are correct statements. D is the correct answer. The definition of capacity, in an operations management context, makes no distinction between efficient and inefficient use of capacity.

2. Capacity utilization rate can be computed as: A. Capacity used - best operating level B. Capacity used x best operating level C. Capacity used / best operating level D. Capacity used + best operating level E. None of the above

C is the correct answer. Capacity utilization rate = Capacity used / best operating level

3. Capacity flexibility can be achieved through: A. Flexible plants B. Flexible processes C. Flexible workers D. Strategies that use the capacity of other organizations E. All of the above

A, B, C, and D are ways to achieving capacity flexibility.

4. Considerations in adding capacity include: A. Maintaining system balance B. Frequency of capacity additions C. External sources of capacity D. A and B E. A and C F. A, B, and C

F is the correct answer. All three are considerations when adding capacity.

5. The types of costs to consider when adding capacity are the cost of upgrading frequently and the cost of upgrading too infrequently. A. True B. False