Which of the following is false regarding capacity expansion?
A) “Average” capacity sometimes leads demand, sometimes lags it.
B) If “lagging” capacity is chosen, excess demand can be met with overtime or
subcontracting.
C) Total cost comparisons are a rather direct method of comparing capacity alternatives.
D) Capacity may only be added in large chunks.
E) All of the above are true.
If a sample of items is taken and the mean of the sample is outside the control limits the
process is
A) out of control and the cause should be established
B) in control, but not capable of producing within the established control limits
C) within the established control limits with only natural causes of variation
D) monitored closely to see if the next sample mean will also fall outside the control
limits
E) producing high quality products