$4.$ Multiple choices $(1$ point for each$)$

$1)$ Capacity decisions at the strategic level include $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Select one:

A$.$ composition of the workforce

B$.$ inventory buffers

C$.$ size of workforce

D$.$ day$-$to$-$day use of machines

E$.$ investment in new facilities and equipment

$2)$ The concept of diseconomies of scale $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Select one:

A$.$ states that beyond a certain point the cost of each additional unit made increases

B$.$ states that the average cost of a unit produced is reduced when the amount of output increases

C$.$ is an approach for measuring unusable output

D$.$ is not realistic

E$.$ is not valid for regulated industries

$3).$ The first step in making a capacity planning decision is $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Select one:

A$.$ identify capacity requirements

B$.$ implementation

C$.$ weight capacity objectives

D$.$ develop capacity alternatives

E$.$ evaluate capacity alternatives

$4)$ Effective capacity is

Select one:

A$.$ the maximum input rate that can be sustained under ideal conditions

B$.$ the maximum output rate that can be sustained under ideal conditions

C$.$ the maximum input rate that can be sustained under normal conditions

D$.$ the maximum percent measure of how well available capacity is being used

E$.$ the maximum output rate that can be sustained under normal conditions

$5)$ The best operating level is the volume of output that results in the $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Select one:

A$.$ most revenue

B$.$ optimum product mix

C$.$ best quality

D$.$ maximum use of machinery

E$.$ lowest average unit cost