1) The number of units a facility can hold, receive, store or produce in a given time is called _______________. a) Demand b) Supply c) Capacity d) Utilization 2) The three (3) key questions to capacity planning are: a) the kind of capacity neededthe kind of capacity needed, how much will be needed, and when will it be needed b) the kind of capacity needed, how much will be needed, and when will it be delivered c) the kind of capacity needed, how will it be delivered, and when will it be delivered d) the kind of capacity needed, how many will be delivered, and when will it be needed 3) Design capacity is always lower than the effective capacity. a) True b) False 4) What field of study provides a framework for making optimal decisions in situations where outcomes are uncertain? a) Operations Research b) Cognitive Psychology c) Behavioral Economics d) Decision Theory 5) How is the optimal decision determined using a payoff table? a) By selecting the decision alternative with the highest probability of success b) By choosing the decision alternative with the lowest associated cost c) By randomly selecting a decision alternative d) By choosing the decision alternative with the highest expected payoff 6) What does suboptimization refer to in decision-making? a) Making decisions based on rational analysis. b) Considering only a part of the system rather than the whole. c) Ignoring constraints in decision-making. d) Maximizing utility without regard to costs. 7) Decision Making under Certainty occurs when the decision-maker lacks complete information about outcomes or their probabilities. a) True b) False 8) Terminal Nodes are the decision points or events where choices are made. a) True b) False 9) ________ is a systematic approach to decision making that involves identifying alternatives, assessing possible outcomes, and selecting the best course of action under given constraints. a) Decision Environment b) Decision Tree c) Decision Theory d) Decision Making Under Certainty

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