Effective capacity is: Multiple Choice a. also called theoretical capacity. b. base capacity plus time for maintenance, breaks, and absenteeism. c. the amount of capacity that can be used in planning for actual output. d. All of these choices are correct.

Michele Platini and Diego Maradona, planners for a company that makes several models of footballs are about to prepare the capacity plan that will cover six periods. They have assembled the following information. 1 250 2 300 4 400 They intend to start with zero inventory on hand in the first period, and their production rate is 300 units per period. Use overtime at a fixed rate of 15 units per period as needed. Use subcontracting at a maximum rate of 50 units per period if needed. Plan for an ending inventory of zero for period 6. Backorders cannot exceed 60 units per period. Compute the total cost of the plan. Period Forecast Prepare the capacity plan as below using the level strategy. Costs: Regular:4£, Overtime: 2£, Subcontracting:10£, Inventory:2£, Backorders: 30£ 1 3 Period Forecast Regular Overtime Subcontracting Output-Forecast Beginning Ending Average Backorders Regular Overtime Subcontracting Inventory Backorders TOTAL 2 PRODUCTION PROCESS INVENTORY 3 350 COSTS 4 5 500 LO 5 6…

1. What factors should be considered when selecting the appropriate capacity cushion? Howdoes the choice of capacity cushion relate to other decisions in operations management?To other functional areas?  2. Capacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?

What are some capacity balance problems faced by the following organizations or facilities?   a An airline terminal   b. A university computing lab   c. A cloning manufacturer

What is the fundamental distinction between design capacity and effective capacity? Provide a brief example/explanation.

Capacity planning requires a demand forecast for an extended period of time into thefuture. What concerns would you have regarding an extended forecast as a capacityplanner?