Question: Briefly discuss how uncertainty affects capacity decisions
Briefly discuss how uncertainty affects capacity decisions.
Answer to relevant QuestionsWhat is the benefit to a business organization of having capacity measures?What are some capacity measures for each of the following? a. University b. Hospitalc. Computer repair shop d. Farm A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $ 9,200 per month and variable costs of 70 ...A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $ 2,000 per day, while two machines will result in a fixed ...Remodeling an office will cost $ 25,000 and will generate savings of $ 3,000 the first year, $ 4,000 the second year, and $ 5,000 per year thereafter. How long will it take to recoup the initial cost of remodeling?
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