PART I: TRUE/FALSE question

In your answer sheet, fill A if the answer TRUE correct and Fill B if the answer FALSE

Question	Answer
1. Supply chain factors are not usually taken into account in capacity planning if substantial capacity changes are involved.
2. Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing cost and time.
3. The operations function exists only in firms that are goods oriented.
4. The term capacity is the upper limit on the workload an operating unit can handle.
5. Capacity decisions are always long-term decisions.
6. Evaluation of capacity alternatives involves economic calculations only.
7. 8) Strategic capacity planning is the systematic determination of facility and major machine/equipment requirements to meet long-term demand for goods, however, this does not apply to services.
8. Operations managers are responsible for managing activities and resources that produce goods and/or provide services.
9. Management information systems (MIS) are concerned with providing management with the information it needs to effectively manage.
10. Service involves a much higher degree of customer contact than the production of goods.