1. Which of the following statements is incorrect?

Facility planning has a short-range component that determines whether more capacity is needed or less.

At the aggregate planning level, expected workforce levels and corresponding production output levels are determined based on existing capacity.

Scheduling consists of short-term decisions that allocates available capacity by assigning it to specific activities.

Scheduling decisions often indicate a need for revised aggregate planning, and aggregate planning may uncover facility needs.

Two types of common capacity measures are number of units produced and tons produced.

2. Which of the following statements is incorrect?

Two types of common capacity measures are number of customers served over a specified period and physical asset availability.

Utilization is the relationship between actual output and input.

Utilization = (actual output/capacity) x 100%

Utilization is a useful measure for estimating how busy a facility is.

In the short term, it is possible to operate above 100% utilization using such approaches as overtime or speeding up the line.

3. Which of the following statements is incorrect?

Continuous flow processes may have utilization near 10%.

Assembly-line processes may set planned utilization at 80% to allow for flexibility to meet unexpected demand.

Batch and job shop processes generally have even lower utilization than continuous or assembly-line processes.

In considering the capacity of a facility, the amount of current capacity and the size of the facility should be considered.

A factor affecting facilities strategies is the predicted demand.

4. Which of the following statements is incorrect?

Two factors affecting facilities strategies is the cost of facilities and the likely behavior of competitors.

Two factors affecting facilities strategies is its alignment to the business strategy and international considerations.

In considering economies of scale, smaller facilities are generally more economical because fixed costs can be spread over more units of production.

In considering economies of scale, larger facilities are generally more economical because the cost of buildings and equipment does not increase linearly with volume.

One large facility incurs more transportation costs to deliver goods than do two smaller facilities.