CIPD QUESTIONS

a. 1. Distinguish between design capacity and effective

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a. 1. Distinguish between design capacity and effective capacity.
2. What is effective capacity?
3. What is efficiency?
4. Distinguish between effective capacity and actual output.
5. Explain why doubling the capacity of a bottleneck may not double the system capacity.
b. 1. Distinguish between bottleneck time and throughput time.
2. What is the theory of constraints?
3. What are the assumptions of break-even analysis?
4. What keeps plotted revenue data from falling on a straight line in a break-even analysis?
5. Under what conditions would a firm want its capacity to lag demand? to lead demand?

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a. 1. Distinguish between design capacity and effective

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