11. How does an organization determine its inventory turnover?

O By having employees become more aware of customers

O By regulating the objectives of inventory management

O By cost of goods sold and average inventory in dollars

O By influencing employees to provide better customer service

12. What is the approximate level of acceptable defects associated with Six Sigma?

O 3.4 ppm

O 5.2 ppm

O 7.3 ppm

O 9.4 ppm

13.Which type of information is required when planning capacity for a hospital?

O The size of the hospital and the number of nearby hotel rooms

O The input measure of patient food versus the output measure of wasted food

O The number of available beds per month and the number of patients per month

O The location of the hospital and the number of parking spaces

14. Which two criteria should a service company consider when choosing a location?

Choose 2 answers

-Production costs

-Closeness to skilled labor force

-Proximity to customers

-Sources of supply

15.Which location is ideal for a fast-food restaurant?

O In the middle of a subdivision

O Within an apartment complex

O Near a landfill

O Near other fast-food restaurants

16. A university builds a new business school and adds extra offices and classrooms to accommodate an expected increase in faculty and enrollment.

Which type of planning is this an example of?

O Capacity alternative planning

O Undercapacity planning

O Overcapacity planning

17. Which measure of capacity indicates the maximum output rate is being achieved by a facility under ideal conditions?

O Capacity utilization

O Capach focus

O Effective capacity

O Design capacity

18. Which capacity planning decision uses qualitative analyses such as executive opinion and the Delphi method?

O Forecasting capacity

O Strategic capacity

O Capacity cushions

O Capacity alternatives

19. How is the capacity utilization rate computed?

O Capacity used - best operating level

O Capacity output best operating level

O Capacity output - best operating level

O Capacity used + best operating level

20..What is the first step a person wanting to open a new restaurant should take?

O Evaluate capacity alternatives

O Develop capacity alternatives

O Identify capacity requirements

O Determine capacity cushions