Question: What are capacity cushions, and why do companies need them?

What are capacity cushions, and why do companies need them?

Step by Step Solution

★★★★★

3.29 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

A capacity cushion is extra capacity that is not n... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Operations Management Questions!

Q:

The manager at a local bank noticed that after a new information system was installed at the bank, some of the customer transactions were not getting posted. The manager knew that this problem could...

Q:

Why do companies need transfer-pricing systems?

Q:

What are transfer prices, and why do companies use them? How could the use of transfer prices improve or impair goal congruence?

Q:

What is the midyear convention and why do companies use it?

Q:

5. Which one of the following statements about capacity cushions is best? A. Companies with flexible flow processes tend to have smaller capacity cushions. B. Companies with high capital costs tend...

Q:

Constraint Management During the Pandemic Never has the importance of supply chain management been as prominent as during the COVID-19 crisis. Aston Martin cut total profitability due to supply chain...

Q:

15 Which one of the following statements about capacity cushions is best? Companies that have considerable customization tend to have smaller capacity cushions. ooo Companies with high capital costs...

Q:

question 5-1 Which of the following statements about the capacity cushions is FALSE? Select one: a. Companies that have considerable customization tend to have larger capacity cushions. b. Small...

Q:

Which one of the following statements about capacity cushions is best? Companies with flexible flow processes tend to have small capacity cushions. Companies with high capital costs tend to have...

Q:

just need answer Which one of the following statements is TRUE? Stable demand (i.e., less demand uncertainty) requires larger capacity cushions. Companies with flexible flow processes tend to have...

Q:

Which of the following statements about capacity cushions is best? Group of answer choices Service companies tend to have larger capacity cushions. Companies with flexible flow processes tend to have...

Q:

A and B dissolve their partnership. Their position as at 31st March, 2018 was: Particulars A's Capital B's Capital Rs. 25,000 15,000 Sundry Creditors 20,000 Cash in Hand and at Bank 750 the firm...

Q:

On December 31, a $1,800,000 bond issue on which there is an unamortized discount of $67,700 is redeemed for $1,759,200. Required: Journalize the redemption of the bonds. Refer to the chart of...

Q:

1 . List 3 kinds of businesses that are most likely to benefit from equipping their employees with mobile digital devices. 2 . Describe each benefit.

Q:

On December 4, 2013, Dan Johnson, delivery truck driver for Farmers Products Inc., ran a stop sign and collided with another vehicle. On January 8, 2014, the driver of the other vehicle filed suit...

Q:

Annual sales, in millions of dollars for 21 pharmaceutical companies follow. a. Provide a five-number summary. b. Compute the lower and upper limits. c. Do the data contain any outliers? d. Johnson &...

Q:

Solve the linear programming model formulated in Problem 57 for Tracy McCoy. a. Are any of the ingredients left over? b. If Tracy could get more of any ingredient, which should it be? Why? c. If...

Q:

Solve the linear programming model formulated in Problem 59 for the Wisham family farm using the computer. a. Are there any extra (slack) resources available? b. If the Wisham family could obtain...

Q:

On June 1, 2018, Herbal Co. received $18,900 for the rent of land for 12 months. Journalize the adjusting entry required for unearned rent on December 31, 2018?

Q:

3.18 If X has the Poisson distribution P(), show that 1/ does not have an unbiased estimator.

Q:

Prepare a flowchart of the field service division process at DEE as described here. Start from the point where a call is received and end when a technician finishes the job. DEF was a multibillion...

Q:

Diagrams of two self-service gasoline stations, both located on corners, are shown in Figure (a) and (b). Both have two rows of four pumps and a booth at which an attendant receives payment for the...

Q:

Diagrams of two self-service gasoline stations, both located on corners, are shown in Figure (a) and (b). Both have two rows of four pumps and a booth at which an attendant receives payment for the...

Q:

Green Caterpillar Garden Supplies Inc. Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: Current Liabilities: Cash and equivalents $150,000 Accounts payable $250,000...

Q:

Assume the risk-free rate is 1%. The following table shows returns and variance-covariance for five stocks. Returns% Var-Cov IT ENG FIN HLT CDS IT 4.559 IT 8.129 7.182 7.171 3.585 7.041 ENG 7.187 ENG...

Q:

A stock had returns of 19 percent, 11 percent, 13 percent, -4 percent, 15 percent, and 11 percent over the last six years. What is the arithmetic return for the stock? What is the geometric return...