Operations management stevenson 11th edition test bank ch5

ch5 Student: _ The term capacity refers to the maximum quantity an operating unit can process over a given period of time True False Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations True False Stating capacity in dollar amounts generally results in a consistent measure of capacity regardless of the actual units of measure True False Design capacity refers to the maximum output that can possibly be attained True False If the unit cost to buy something is less than the variable cost to make it, the decision to make or buy is based solely on the fixed costs True False Increasing productivity and also quality will result in increased capacity True False Utilization is defined as the ratio of effective capacity to design capacity True False Increasing capacity just before a bottleneck operation will improve the output of the process True False An example of an external factor that influences effective capacity is government safety regulations True False 10 Cost and competitive priorities reduce effective capacities True False 11 Capacity increases are usually acquired in fairly large "chunks" rather than in smooth increments True False 12 In cost-volume analysis, costs that vary directly with volume of output are referred to as fixed costs because they are a fixed percentage of output levels True False 13 The break-even quantity can be determined by dividing the fixed costs by the difference between the revenue per unit and the variable cost per unit True False 14 According to the reading on restaurant sourcing practices, only fast-food restaurants are able to ‘bring in' outsourced foods True False 15 The greater the gap between current and desired capacity the greater the opportunity for profit True False 16 The current trend toward global operations has made capacity decisions much easier since we have the whole world in which to consider operations True False 17 Capacity planning requires an analysis of needs; what kind, how much and when True False 18 Waiting line analysis can be useful for capacity design, especially for service systems True False 19 Capacity decisions often involve a long-term commitment of resources which, when implemented, are difficult or impossible to modify without major added costs True False 20 Outsourcing some production is a means of supporting a constraint True False 21 Outsourcing some production is a means of _ a capacity constraint A identifying B modifying C supporting D overcoming E repeating 22 A basic question in capacity planning is: A what kind is needed B how much is needed C when is it needed D all of the above E none of the above 23 Which of these factors wouldn't be subtracted from design capacity when calculating effective capacity? A Personal time B Maintenance C Scrap D Operating hours per day E All of the above would be subtracted in the calculation 24 A reason for the importance of capacity decisions is that capacity: A limits the rate of output possible B affects operating costs C is a major determinant of initial costs D is a long-term commitment of resources E all of the above 25 Which of the following is the case where capacity is measured in terms of inputs? A Hospital B Theater C Restaurant D All of the above E None of the above 26 Unbalanced systems are evidenced by … A Top heavy operations B Labor unrest C Bottleneck operations D Increasing capacities E Assembly lines 27 Maximum capacity refers to the upper limit of: A inventories B demand C supplies D rate of output E finances 28 The impact that a significant change in capacity will have on a key vendor is a: A supply chain factor B process limiting factor C internal factor D human resource factor E operational process factor 29 The maximum possible output given a product mix, scheduling difficulties, quality factors, and so on, is: A utilization B design capacity C efficiency D effective capacity E available capacity 30 Efficiency is defined as the ratio of: A actual output to effective capacity B actual output to design capacity C design capacity to effective capacity D effective capacity to actual output E design capacity to actual output 31 Utilization is defined as the ratio of: A actual output to effective capacity B actual output to design capacity C design capacity to effective capacity D effective capacity to actual output E design capacity to actual output 32 Which of the following is a factor that affects service capacity planning? A The need to be near customers B The inability to store services C The degree of volatility of demand D The customer's willingness to wait E All of the above 33 Which of the following is a tactic that helps service capacity management? A Pricing B Promotions C Discounts D Advertising E All of the above 34 The ratio of actual output to effective capacity is: A design capacity B effective capacity C actual capacity D efficiency E utilization 35 The ratio of actual output to design capacity is: A design capacity B effective capacity C actual capacity D efficiency E utilization 36 Given the following information, what would efficiency be? Effective capacity = 80 units per day Design capacity = 100 units per day Utilization = 48% A 20% B 35% C 48% D 60% E 80% 37 Given the following information, what would efficiency be? Effective capacity = 50 units per day Design capacity = 100 units per day Actual output = 30 units per day A 40% B 50% C 60% D 80% E 90% 38 Given the following information, what would utilization be? Effective capacity = 20 units per day Design capacity = 60 units per day Actual output = 15 units per day A 1/4 B 1/3 C 1/2 D 3/4 E none of these 39 Which of the following is not a strategy to manage service capacity? A Hiring extra workers B Backordering C Pricing and promotion D Part time workers E Subcontracting 40 Which of the following is not a determinant of effective capacity? A Facilities B Product mix C Actual output D Human factors E External factors 41 Capacity planning decisions have both long-term and short-term considerations Which of the following statements are true? (I) Long-term considerations relate to the overall level of capacity (II) Short-term considerations relate to the probable variations in capacity requirements (III) Short-term considerations determine the "effective capacity." A Only one of the three statements is true B I and II C II and III D I and III E All three statements are correct 42 Capacity in excess of expected demand that is intended to offset uncertainty is a: A margin protect B line balance C capacity cushion D timing bubble E none of the above 43 Short-term considerations in determining capacity requirements include: A demand trend B cyclical demand variations C seasonal demand variations D mission statements E new product development plans 44 Which of the following is not a criterion for developing capacity alternatives? A Design structured, rigid systems B Take a big-picture approach to capacity changes C Prepare to deal with capacity in "chunks" D Attempt to smooth out capacity requirements E Identify the optimal operating level 45 Seasonal variations are often easier to deal with in capacity planning than random variations because seasonal variations tend to be: A smaller B larger C predictable D controllable E less frequent 46 Production units have an optimal rate of output where: A total costs are minimum B average unit costs are minimum C marginal costs are minimum D rate of output is maximum E total revenue is maximum 47 When the output is less than the optimal rate of output, the average unit cost will be: A lower B the same C higher D either higher or lower E either higher, lower or the same 48 When buying component parts, risk does not include: A loss of control B vendor viability C interest rate fluctuations D need to disclose proprietary information E all are risk factors 49 At the break-even point: A output equals capacity B total cost equals total revenue C total cost equals profit D variable cost equals fixed cost E variable cost equals total revenue 50 What is the break-even quantity for the following situation? FC = $1,200 per week VC = $2 per unit Rev = $6 per unit A 100 B 200 C 600 D 1,200 E 300 51 An alternative will have fixed costs of $10,000 per month, variable costs of $50 per unit, and revenue of $70 per unit The break-even point volume is: A 100 B 2,000 C 500 D 1,000 E none of these 52 For fixed costs of $2,000, revenue per unit of $2, and variable cost per unit of $1.60, the break-even quantity is: A 1,000 B 1,250 C 2,250 D 5,000 E none of these 53 Which of the following are assumptions of the break-even model? I Only one product is involved II Everything that is produced can be sold III The revenue per unit will be the same regardless of volume A I only B I and II only C II only D II and III only E I, II and III 54 If the output rate is increased but the average unit costs also increase we are experiencing: A market share erosion B economies of scale C diseconomies of scale D value added accounting E step-function scale up 55 The method of financial analysis which focuses on the length of time it takes to recover the initial cost of an investment is: A payback B net present value C internal rate of return D queuing E cost-volume 56 When determining the timing and degree of capacity change, one can use the approach of: A lead time flexibility strategy B expand early strategy C wait-and-see strategy D backordering E delayed differentiation 69 How many rosebushes would she have to produce and sell in order to break even? A 1,600 B 2,400 C 2,000 D 1,000 E 1,500 Divide the fixed cost of $6,000 by the per-unit contribution margin of $3 AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #69 Topic Area: Cost-Volume Analysis 70 How many rosebushes would she have to produce and sell in order to make a profit of $6,000? A 1,600 B 2,400 C 3,000 D 1,000 E 4,000 Add the desired profit of $6,000 to the fixed cost, then divide the sum by the per-unit contribution margin AACSB: Analytic Blooms: Analyze Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #70 Topic Area: Cost-Volume Analysis 71 If her available land has design and effective capacities of 3,000 and 2,000 rosebushes per year respectively, and she plans to grow 1,200 rosebushes each year on this land, what will be the utilization of this land? A 0% B 40% C 60% D 67% E 100% Divide actual output by the design capacity AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-02 Discuss ways of defining and measuring capacity Stevenson - Chapter 05 #71 Topic Area: Defining and Measuring Capacity 72 If her available land has design and effective capacities of 3,000 and 2,000 rosebushes per year, respectively, and she expects to be 80% efficient in her use of this land, how many rosebushes does Rose plan to grow each year on this land? A 1,600 B 2,400 C 3,000 D 2,000 E 1,000 Multiply the effective capacity of 2,000 rosebushes by 0.8 AACSB: Analytic Blooms: Analyze Difficulty: Medium Learning Objective: 05-02 Discuss ways of defining and measuring capacity Stevenson - Chapter 05 #72 Topic Area: Defining and Measuring Capacity A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a prime location near Washington, D.C They estimate it will cost $50 per prisoner to process the paperwork at this new location The county is paid a $75 commission for each new prisoner they process Stevenson - Chapter 05 73 What would be the counties annual profit if they were to process 4,000 prisoners per year at this new location? A $0 B $75,000 C $50,000 D $100,000 E $300,000 Total revenue would be $300,000 Total cost would be $250,000 (fixed = $50,000; variable = $200,000) AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #73 Topic Area: Cost-Volume Analysis 74 How many prisoners would they have to process annually to break even at this new location? A 5,000 B 8,000 C 2,000 D 4,000 E 6,000 Divide the fixed cost of $50,000 by the per-unit contribution margin of $25 AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #74 Topic Area: Cost-Volume Analysis 75 How many prisoners would they have to process annually to make a profit of $100,000 at this new location? A 5,000 B 8,000 C 2,000 D 4,000 E 6,000 Add the desired profit of $100,000 to the fixed costs, then divide the sum by the per-unit contribution margin AACSB: Analytic Blooms: Analyze Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #75 Topic Area: Cost-Volume Analysis 76 If the holding area at this new location has design and effective capacities of 10,000 and 7,500 prisoners processed annually, respectively, and 5,000 prisoners will be processed per year, what will be the utilization of the holding area? A 0% B 30% C 50% D 60% E 100% Divide the actual output by the design capacity AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-02 Discuss ways of defining and measuring capacity Stevenson - Chapter 05 #76 Topic Area: Defining and Measuring Capacity 77 If his holding area at this new location has design and effective capacities of 10,000 and 7,500 prisoners processed annually, respectively, and they plan to be 80% efficient in their use of this space, how many prisoners does the county plan to process per year? A 5,000 B 8,000 C 2,000 D 4,000 E 6,000 Multiply the effective capacity by 0.8 AACSB: Analytic Blooms: Analyze Difficulty: Medium Learning Objective: 05-02 Discuss ways of defining and measuring capacity Stevenson - Chapter 05 #77 Topic Area: Defining and Measuring Capacity Doctor J is considering purchasing a new blood analysis machine to test for HIV; it will cost $60,000 He estimates that he could charge $25.00 for an office visit to have a patient's blood analyzed, while the actual cost of a blood analysis would be $5.00 Stevenson - Chapter 05 78 What would be his profit if he were to perform 5,000 HIV blood analyses? A $0 B $40,000 C $60,000 D $25,000 E $100,000 Total revenue would be $125,000 Total cost would be $85,000 (fixed = $60,000; variable = $25,000) AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #78 Topic Area: Cost-Volume Analysis 79 How many HIV blood analyses would he have to perform in order to break even? A 12,000 B 2,400 C 3,000 D 1,000 E 5,000 Divide the fixed cost of $60,000 by the per-unit contribution margin of $5 AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #79 Topic Area: Cost-Volume Analysis 80 How many HIV blood analyses would he have to perform in order to make a profit of $15,000? A 3,000 B 4,800 C 5,000 D 12,000 E 3,750 Add the desired profit to the fixed cost and then divide the sum by the per-unit contribution margin AACSB: Analytic Blooms: Analyze Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #80 Topic Area: Cost-Volume Analysis 81 If this new blood analysis machine has design and effective capacities of 6,000 and 5,000 blood analyses per year, respectively, and Dr J expects to perform 4,500 HIV blood analyses each year, what will be the utilization of this machine? A 0% B 75% C 83% D 90% E 100% Divide the actual output by the design capacity AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-02 Discuss ways of defining and measuring capacity Stevenson - Chapter 05 #81 Topic Area: Defining and Measuring Capacity 82 If this new blood analysis machine has design and effective capacities of 6,000 and 5,000 blood analyses per year, respectively, and Dr J expects to be 80% efficient in his use of this machine, how many HIV blood analyses does he plan to perform each year? A 3,200 B 4,800 C 4,000 D 1,000 E 5,000 Multiply the effective capacity by 0.8 AACSB: Analytic Blooms: Analyze Difficulty: Medium Learning Objective: 05-02 Discuss ways of defining and measuring capacity Stevenson - Chapter 05 #82 Topic Area: Defining and Measuring Capacity 83 Operation X feeds into Operation Y Operation X has an effective capacity of 55 units per hour Operation Y has an effective capacity of 50 units per hour Increasing X's effective capacity to ensure that Y's utilization is maximized would be an example of a constraint A overcoming B outsourcing C insourcing D cushioning E none of the above Increase the effective capacity of an operation that precedes a constraint is an example of supporting the constraint AACSB: Reflective Thinking Blooms: Understand Difficulty: Medium Learning Objective: 05-03 Describe the determinants of effective capacity Stevenson - Chapter 05 #83 Topic Area: Constraint Management 84 Operation X feeds into Operation Y Operation X has an effective capacity of 55 units per hour Operation Y has an effective capacity of 50 units per hour Finding a way to increase Y's effective capacity would be an example of a constraint A overcoming B cushioning C insourcing D cycling E repositioning Increase the effective capacity of a constraint is an example of overcoming the constraint AACSB: Reflective Thinking Blooms: Remember Difficulty: Medium Learning Objective: 05-03 Describe the determinants of effective capacity Stevenson - Chapter 05 #84 Topic Area: Constraint Management 85 Which of the following makes using present value approaches in capacity decisions difficult? A The discount rate must be adjusted to account for inflation B Some cash flows are positive and other cash flows are negative C The payback period might not be long enough to justify a capacity decision D Capacity decisions are made amidst much uncertainty, so cash flows cannot be estimated with great accuracy E None of the above PV approaches require accurate estimates of cash flows These are difficult to formulate when circumstances are as uncertain as they are in capacity decisions AACSB: Reflective Thinking Blooms: Understand Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #85 Topic Area: Financial Analysis 86 Suppose operation X feeds directly into operation Y All of X's output goes to Y, and Y has no other operations feeding into it X has a design capacity of 80 units per hour and an effective capacity of 72 units per hour Y has a design capacity of 100 units per hour What is Y's maximum possible utilization? A 80% B 72% C 90% D 70% E None of the above If the maximum rate of output from X is 72 units per hour, then the maximum rate of input into Y (and therefore output from Y) is 72 units per hour AACSB: Analytic Blooms: Analyze Difficulty: Medium Learning Objective: 05-02 Discuss ways of defining and measuring capacity Stevenson - Chapter 05 #86 Topic Area: Defining and Measuring Capacity 87 Students at a major university must go through several registration steps Officials have observed that it is typically the case that the waiting line at the fee-payment station is the longest This would seem to suggest that the fee-payment station is the _ in the student registration process A capacity cushion B restraint C bottleneck D economy of scale E diseconomy of scale The longest waiting line is generally indicative of a bottleneck operation AACSB: Reflective Thinking Blooms: Remember Difficulty: Easy Learning Objective: 05-02 Discuss ways of defining and measuring capacity Stevenson - Chapter 05 #87 Topic Area: Waiting-Line Analysis Given the following data for a make or buy decision: Stevenson - Chapter 05 88 What are total costs to buy a quantity of 15,000 units per year? $120,000 Feedback: Multiply 15,000 by the per-unit purchase cost of $8 AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #88 Topic Area: Cost-Volume Analysis 89 What are total costs to make a quantity of 15,000 units per year? $160,000 Feedback: Multiply the per-unit make cost of $4 per unit, and add the fixed cost of $100,000 AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #89 Topic Area: Cost-Volume Analysis 90 For what quantity would you be indifferent between buying or making? 25,000 units per year Feedback: Divide the difference in fixed cost ($100,000) by the difference in per-unit cost ($8 - $4) AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #90 Topic Area: Cost-Volume Analysis 91 For what range of output would you prefer to buy? 1-24,999 Feedback: In low quantities (< 25,000), it is more economical to buy due to the fixed costs of making AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #91 Topic Area: Cost-Volume Analysis 92 For what range of output would you prefer to make? 25,000 and above Feedback: In large quantities (> 25,000), it is more economical to make because the difference in fixed cost is more than made up by the more attractive per-unit cost of make AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #92 Topic Area: Cost-Volume Analysis 93 Which alternative would you select for a quantity of 24,000 units per year? B Feedback: This quantity is less than that at which we are indifferent between making or buying For lower volumes, buying is more economical AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #93 Topic Area: Cost-Volume Analysis 94 What would be your total costs for the preferred alternative, for 32,000 units per year? $228,000 Feedback: This quantity is in excess of that at which we are indifferent between making or buying For higher volumes, making is more economical AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #94 Topic Area: Cost-Volume Analysis 95 What would be your cost savings for the preferred alternative, for 32,000 units per year, compared to the other alternative? $28,000 Feedback: Making would have a total cost of $228,000, while buying would have a total cost of $256,000 AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #95 Topic Area: Cost-Volume Analysis Stevenson - Chapter 05 96 What is the break-even quantity (produced and sold)? 25,000 units Feedback: Divide the fixed cost ($15,000) by the per-unit margin ($0.60) AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #96 Topic Area: Cost-Volume Analysis 97 What are total revenues for the break-even quantity? $40,000 Feedback: Multiple the break-even quantity (25,000) by the per-unit price ($1.60) AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #97 Topic Area: Cost-Volume Analysis 98 What are total costs for the break-even quantity? $40,000 Feedback: Fixed cost would be $15,000 Variable cost would be $25,000> AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #98 Topic Area: Cost-Volume Analysis 99 What quantity would be required for a profit of $2,000? 28,334 units Feedback: Add the desired profit to the fixed cost, then divide the sum by the per-unit contribution margin of $0.60 AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #99 Topic Area: Cost-Volume Analysis 100 What profit (loss) would there be for a quantity of 27,000? $1,200 Feedback: Total revenue would be $43,200 Total cost would be $42,000 (fixed = $15,000; variable = $27,000) AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #100 Topic Area: Cost-Volume Analysis 101 What profit (loss) would there be for a quantity of 10,000? $9,000 loss Feedback: Total revenue would be $16,000 Total cost would be $42,000 (fixed = $15,000; variable = $10,000) AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives Stevenson - Chapter 05 #101 Topic Area: Cost-Volume Analysis 102 What is the anticipated utilization? 80% Feedback: Divide actual output by design capacity AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-02 Discuss ways of defining and measuring capacity Stevenson - Chapter 05 #102 Topic Area: Defining and Measuring Capacity 103 What is the anticipated efficiency? 90% Feedback: Divide actual output by effective capacity AACSB: Analytic Blooms: Apply Difficulty: Medium Learning Objective: 05-02 Discuss ways of defining and measuring capacity Stevenson - Chapter 05 #103 Topic Area: Defining and Measuring Capacity ch5 Summary Category # of Questions AACSB: Analytic 48 AACSB: Reflective Thinking 55 Blooms: Analyze 10 Blooms: Apply 40 Blooms: Create Blooms: Evaluate Blooms: Remember 20 Blooms: Understand 29 Difficulty: Easy 15 Difficulty: Hard Difficulty: Medium 79 Learning Objective: 05-01 Summarize the importance of capacity planning Learning Objective: 05-02 Discuss ways of defining and measuring capacity 29 Learning Objective: 05-03 Describe the determinants of effective capacity Learning Objective: 05-04 Discuss the major considerations related to developing capacity alternatives 14 Learning Objective: 05-05 Briefly describe approaches that are useful for evaluating capacity alternatives 43 Stevenson - Chapter 05 109 Topic Area: Additional Challenges of Planning Service Capacity Topic Area: Calculating Processing Requirements Topic Area: Capacity Decisions Are Strategic Topic Area: Constraint Management Topic Area: Cost-Volume Analysis 36 Topic Area: Defining and Measuring Capacity 25 Topic Area: Determinants of Effective Capacity Topic Area: Developing Capacity Strategies Topic Area: Do It In-House or Outsource It? Topic Area: Financial Analysis Topic Area: Operations Strategy Topic Area: Waiting-Line Analysis ... measuring capacity Stevenson - Chapter 05 #25 Topic Area: Defining and Measuring Capacity 26 Unbalanced systems are evidenced by … A Top heavy operations B Labor unrest C Bottleneck operations D Increasing... above E None of the above 26 Unbalanced systems are evidenced by … A Top heavy operations B Labor unrest C Bottleneck operations D Increasing capacities E Assembly lines 27 Maximum capacity refers... capacity Stevenson - Chapter 05 #1 Topic Area: Defining and Measuring Capacity Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations