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Which of the following is NOT a factor affecting the elements of a facilities strategy?


A) Cost of facilities
B) Likely behavior of competitors
C) Business strategy
D) Whether the company uses make-to-stock or assemble-to-order
E) International considerations

F) A) and B)
G) C) and D)

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Which of the following statements is true about facilities decisions?


A) Facilities decisions do not consider the amount of capacity,size of units,the timing of capacity changes,and the types of facilities needed.
B) Facilities decisions are on the short-range end of a hierarchy of capacity decisions.
C) Facilities decisions are not critical as they only determine future availability of output.
D) Facilities decisions involve all organizational units and are often made at the highest corporate level.
E) Facilities decisions are simple and easy to analyze.

F) D) and E)
G) B) and E)

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The type of strategy used with respect to the amount of capacity cushion when "the cost or consequence of running out is approximately in balance with the cost of excess capacity" is called:


A) Small cushion
B) Large cushion
C) Moderate cushion
D) None of the above

E) None of the above
F) B) and C)

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