Management may choose to build up capacity in anticipation of demand or in response to developing demand. Cite the advantages and disadvantages of both approaches.
Answer to relevant QuestionsWhat is capacity balance? Why is it hard to achieve? What methods are used to deal with capacity imbalances?Refer to Exhibit 5.6. Why is it that the “critical zone” begins at a utilization rate of about 70 percent in a typical service operation? Draw upon your own experiences as either a customer or a server in common ...Suppose that operators have enough training to operate both the bronze machines and the injection molding machine for the plastic sprinklers. Currently AlwaysRain has 10 such employees. In anticipation of the ad campaign ...What relationship is there between learning curves and capacity analysis?Omega Technology is starting production of a new supercomputer for use in large research universities. They have just completed the first unit, which took 120 man-hours to produce. Based on their experience, they estimate ...
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